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Guilherme Mazui

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What is the Difference Between Reward and Incentive?

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The main difference between rewards and incentives lies in their purpose, timing, and impact on employee motivation and behavior. Here are the key distinctions between the two:

  1. Purpose:
  • Rewards serve as recognition and appreciation for past performance, accomplishments, or contributions of employees.
  • Incentives are designed to encourage desired behaviors, enhance productivity, and foster a positive work environment.
  1. Timing:
  • Rewards are typically given after an action or behavior has been performed.
  • Incentives are often used as a form of motivation to encourage individuals to perform a certain action or behavior, and they are typically offered before the action or behavior has been performed.
  1. Impact:
  • Rewards acknowledge past accomplishments and reinforce positive behavior.
  • Incentives stimulate specific actions and encourage desired behaviors.
  1. Nature:
  • Rewards can be both tangible (such as monetary rewards, gifts, and promotions) and intangible (such as recognition, praise, or appreciation).
  • Incentives can take many forms, including financial incentives, recognition, promotions, or other forms of positive reinforcement.

In summary, rewards are given as recognition for past achievements, while incentives are offered to motivate and encourage specific actions or behaviors. Both play vital roles in motivating individuals, but they differ in their timing, focus, and execution.

On this page
  • What is the Difference Between Reward and Incentive?
  • Comparative Table: Reward vs Incentive

    • Comparative Table: Reward vs Incentive

    Here is a table illustrating the differences between rewards and incentives:

    Feature Reward Incentive
    Definition An accolade given to the employee for performing a task Something offered to employees to motivate or reward them
    Purpose To recognize and retain the right kind of employees To encourage specific behavior or performance
    Type Can be monetary or non-monetary Usually monetary, but can also be non-monetary
    Nature A form of recognition or appreciation A form of motivation or inducement
    Frequency Typically paid periodically, such as a salary or bonus Paid when the desired behavior or outcome is achieved
    Long-Term Effects Can contribute to long-term loyalty and job satisfaction Can motivate employees to continue improving performance
    Examples Employee of the Month award, bonus, promotion Commission, performance bonus, profit-sharing

    The key differences between rewards and incentives are:

    • Timing: Rewards are typically given after the completion of a task or period of time, while incentives are offered before the desired behavior or outcome is achieved.
    • Motivation: Both rewards and incentives are used to motivate employees to perform better and achieve their goals.
    • Benefits: Both rewards and incentives offer benefits to employees beyond their regular salary or compensation.
    • Performance: Both rewards and incentives are tied to employee performance, either past or future.
    • Customization: Both rewards and incentives can be tailored to the specific needs and preferences of employees.
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    Guilherme Mazui

    Guilherme Mazui is graduated in journalism from the Federal University of Minas Gerais (UFMG) and a master's degree in Communication from the University of São Paulo (USP). In addition, he has experience in advertising writing and has worked as a content editor in several companies.