ABSTRACT
Incentives are a performance management intervention that consistently lead to impressive and sustained gains in employee performance. Incentive-based programs may take many forms and much remains to be learned about how the various contingency arrangements and incentive parameters influence the efficacy of an incentive system in applied settings. This chapter provides an overview of pertinent research on incentive-based programs with an emphasis on the variations with which such programs can be implemented. The chapter also offers some practical recommendations for the development and implementation of incentive systems. Finally, I review several potentially fruitful directions for future research.
