Understand the basics of bonuses and incentives, the trends in their application, and how to design and operate schemes effectively and ethically
The effectiveness of bonus and incentive schemes depends on an awareness of the key factors needed for success and recognising that individuals may respond differently to the same stimulus.
This factsheet explores the types of bonuses and incentives, their use, and their potential benefits and drawbacks. It also highlights research evidence and the possible implications of using such schemes.
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Effective HR decision-making is based on considering the best available evidence combined with critical thinking.