The effectiveness of incentive programs has been a common question raised by the marketers and business developers across different countries in the world. It is very important to be noted that the amount spent for incentives in the organization is notable. The motivation for the employees is done in many ways among which the incentives have an important role. Studies show that programs of incentives are very helpful to boost the performance of employees to twenty five to forty four per cent in an organization. The pathetic fact is that many organization managements are not aware of these benefits of incentives which delay the outcome of desired results.

The monetary awards or tangible awards are used as the substance of incentives which is very helpful to improve the performance of level of employees. But it is very important that the programs are selected, implemented and monitored in the right time using the right methods. Why this increase the performance of employees is because it can increase the interest of employees in work. The employees get motivated by the incentive programs which makes the actively participating in the business activities. The managers must ensure it with comparisons of performance after and before incentive programs.

In an organization there can be two kind of employees, they are high quality workers and low quality workers. The incentive programs are very useful to find out the high quality workers. They are identified and retained in the organization which can also increase the cohesiveness of organizations. The success of a program and return on investment is highly depended on the operations. The value given to the program by the employees and managers determines the effectiveness of the program. The value of the organizational goals is also increased by the incentive programs in the mind of employees. This is very helpful to form stronger commitment in them.

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