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.

 

Member tool: CIPD Buddy AI AI
Use AI to find trusted answers on our Knowledge hub. Start using CIPD Buddy AI

To continue reading, log in or become a member

Affiliate membership offers instant access to CIPD resources without the need for assessments or study, or explore your options to become a professional member of the CIPD to demonstrate your commitment to the world of work.

  • Access to exclusive, up-to-date resources
  • Become part of a community to learn, debate and connect with other people professionals
  • Free access to a series of CIPD learning courses and a discount on the rest of our catalogue
  • Factsheet

    Reward: an introduction

    Introduces the basics of reward, which includes pay and benefits, and outlines the UK legal position

  • Employment law

    Pay, reward and pensions: UK employment law

    This page explains the key elements of UK employment law that people professionals need to know and understand around pay, reward and pensions. This page includes evolving case law to show how legislation is being applied in practice

    For Members
  • Factsheet

    Reward: an introduction

    Introduces the basics of reward, which includes pay and benefits, and outlines the UK legal position

  • Factsheet

    Pre-employment checks: Factsheet

    Factsheet outlining the basics of pre-employment checks (including right to work checks) required when hiring in the UK

    For Members
  • Factsheets