Align Incentives for Growth Teams
Most employee incentives built in today’s companies are efficiency-focused. You execute at a certain level of productivity, hit your team or company KPIs and get rewards. For example:
- Reach a sales quota, and get a commission.
- Achieve a target stock price, and receive a bonus.
- Surpass a specific goal, earn a promotion…
A requirement for these incentives to work is a well-defined process: you have historical data to forecast future results, a documented step-by-step guide to follow, and a clear understanding of the mechanics of your tasks.
The incentive theory of motivation is a behavioral theory that suggests people are motivated by a drive for incentives and reinforcement. The incentive theory also proposes that people behave in a way they believe will result in a reward and avoid actions that may entail punishment.