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Organizations are undertaking the incentive pay system to evaluate the efficiency of the system and the benefits, as well as the cost pertaining the system. This essay is based on the evaluation of effectiveness and fairness in different occupations under management. It is deemed to improve the motivation and in turn increase productivity and efficiency. These benefits never come singly but some disadvantages follow suit.

The benefits on the incentives are inclusively felt across the occupations amongst the employees and the management. Firstly, it creates a platform that ease influence of behaviour. Recognition and acknowledging readily improve the work output and the morale. The payment incentives often increases the producing and reduces the problematic behaviors. The incentive improve the attitude across the employees at the working place. Extra efforts by the workers earn the workers promotion and awarding extra income. It is readily applicable to recruiting object.

Monetary incentives also has some negatives aspects, which include regular use of the incentive that creates an impaired view, which is an entitlement instead of bonus or a motivator. Unstated and set guidelines give unplanned consequences if it is well rooted to the point. With times, constant use of the same program can cause de-motivation because of lack of changes in the structure. It is frustrating mainly when it involve group working and causes false perception of unequal contribution amongst members. To gain the incentives, it creates completion and leads to rivalry amongst the employees.


It is with no doubt that the incentives payment has both the benefits and its related cons. However, it has the great part on its effective in the business. This is a green light to different company and occupation to apply. It has been seen to mainly work best in business tied occupation for perfect application.


Miller B. (2015). Pros and Cons of Monetary Incentives. Retrieved from,