Reward vs. Incentive — What's the Difference?
Edited by Tayyaba Rehman — By Urooj Arif — Updated on April 18, 2024
A reward is a benefit provided after a task to acknowledge success, while an incentive is offered beforehand to motivate performance.
Difference Between Reward and Incentive
Table of Contents
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Key Differences
Rewards are given after the completion of a task or achievement, serving as a recognition of effort or success. Whereas incentives are presented before or during a task, intended to motivate or encourage specific actions or behaviors.
Rewards are often seen as a form of gratitude or acknowledgment, making them fundamentally retrospective—they look back on what has been accomplished. On the other hand, incentives are proactive; they look forward to influence future behaviors by offering something desirable in return for desired performance.
In the workplace, rewards might include bonuses, promotions, or public recognition after targets are met or projects are completed successfully. Conversely, incentives might consist of potential bonuses, extra leave days promised in advance, or other benefits that employees work towards achieving.
In educational settings, a student might receive a reward such as a certificate or a prize after achieving high marks or winning a competition. In contrast, an incentive might be the promise of a field trip or extra credit points to encourage participation or improved performance throughout the semester.
The effectiveness of rewards often depends on the perceived value and timing of the recognition received, which can significantly impact satisfaction and morale. Whereas the effectiveness of incentives relies on their desirability and the clarity of the goals set to achieve them, which can drive motivation and effort from the start.
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Comparison Chart
Purpose
To recognize past achievements
To motivate future performance
Timing
Given after an action is completed
Offered before or during an action
Motivational Influence
Retrospective (acknowledges past behavior)
Proactive (influences future behavior)
Examples in Workplace
Bonuses for past sales performance
Future bonuses for meeting upcoming targets
Examples in Education
Prizes for past academic achievements
Promises of future outings for improved attendance
Compare with Definitions
Reward
A benefit given in recognition of one's effort, service, or achievement.
The employee received a reward of a company-paid vacation for her exceptional work.
Incentive
Something that incites or has a tendency to incite determination or action.
The sales team was offered an incentive to exceed their targets this quarter.
Reward
Can serve as motivation for continued success and loyalty.
His reward for winning the competition was a new laptop.
Incentive
Aimed at influencing future behavior or decisions.
The incentive program was designed to increase productivity across departments.
Reward
Often used to acknowledge the completion of a goal or task.
After the project's success, the team was rewarded with bonuses.
Incentive
Given before the desired action to encourage the action to take place.
As an incentive for timely completion, the contractor would receive a bonus.
Reward
Typically seen as a retrospective acknowledgment.
Rewards were given at the end of the year for the employees' hard work.
Incentive
Often involves a promise or offer of a reward.
Incentives like flexible work hours encouraged staff to join the firm.
Reward
May reinforce positive behavior or outcomes.
The reward system in the school effectively encouraged students to participate more in class activities.
Incentive
Can be both tangible (e.g., bonuses) and intangible (e.g., recognition).
The manager used an incentive of potential promotion to spur competition among team members.
Reward
A thing given in recognition of service, effort, or achievement
He's reaping the rewards of his hard work and perseverance
The holiday was a reward for 40 years' service with the company
The emotional rewards of being a carer
Incentive
An incentive is something that motivates or drives one to do something or behave in a certain way. There are two types of incentives that affect human decision making.
Reward
Give something to (someone) in recognition of their services, efforts, or achievements
The engineer who supervised the work was rewarded with the MBE
Incentive
A thing that motivates or encourages someone to do something
Give farmers an incentive to improve their land
Reward
A consequence that happens to someone as a result of worthy or unworthy behavior
The rewards of exercise.
The rewards of lying to your boss.
Incentive
Something, such as the fear of punishment or the expectation of reward, that induces action or motivates effort.
Reward
Money offered or given for some special service, such as the return of a lost article or the capture of a criminal.
Incentive
Serving to induce or motivate
An incentive bonus for high productivity.
Reward
A satisfying return on investment; a profit.
Incentive
Something that motivates, rouses, or encourages.
I have no incentive to do housework right now.
Reward
(Psychology) The return for performance of a desired behavior; positive reinforcement.
Incentive
A bonus or reward, often monetary, to work harder.
Management offered the sales team a $500 incentive for each car sold.
Reward
To give a reward to or for.
Incentive
Inciting; encouraging or moving; rousing to action; stimulating.
Reward
Something of value given in return for an act.
For catching the thief, you'll get a nice reward.
Incentive
Serving to kindle or set on fire.
Reward
A prize promised for a certain deed or catch
The rewards for bringing in badly wanted criminals are printed on 'dead or alive' posters.
Incentive
Inciting; encouraging or moving; rousing to action; stimulative.
Competency is the most incentive to industry.
Reward
The result of an action, whether good or bad.
Is this the reward I get for telling the truth: to be put in jail?
Incentive
Serving to kindle or set on fire.
Part incentive reedProvide, pernicious with one touch of fire.
Reward
(transitive) To give a reward to or for.
Why are you rewarding the child for misbehaving?
Why are you rewarding that bad behaviour?
Incentive
That which moves or influences the mind, or operates on the passions; that which incites, or has a tendency to incite, to determination or action; that which prompts to good or ill; motive; spur; as, the love of money, and the desire of promotion, are two powerful incentives to action.
The greatest obstacles, the greatest terrors that come in their way, are so far from making them quit the work they had begun, that they rather prove incentives to them to go on in it.
Reward
(transitive) To recompense.
Decorations are meant to reward the most meritous acts and services.
Incentive
A positive motivational influence
Reward
To give (something) as a reward.
Incentive
An additional payment (or other remuneration) to employees as a means of increasing output
Reward
To give in return, whether good or evil; - commonly in a good sense; to requite; to recompense; to repay; to compensate.
After the deed that is done, one doom shall reward,Mercy or no mercy as truth will accord.
Thou hast rewarded me good, whereas I have rewarded thee evil.
I will render vengeance to mine enemies, and will reward them that hate me.
God rewards those that have made use of the single talent.
Reward
Regard; respect; consideration.
Take reward of thine own value.
Reward
That which is given in return for good or evil done or received; esp., that which is offered or given in return for some service or attainment, as for excellence in studies, for the return of something lost, etc.; recompense; requital.
Thou returnestFrom flight, seditious angel, to receiveThy merited reward.
Rewards and punishments do always presuppose something willingly done well or ill.
Reward
Hence, the fruit of one's labor or works.
The dead know not anything, neither have they any more a reward.
Reward
Compensation or remuneration for services; a sum of money paid or taken for doing, or forbearing to do, some act.
Reward
A recompense for worthy acts or retribution for wrongdoing;
The wages of sin is death
Virtue is its own reward
Reward
Payment made in return for a service rendered
Reward
An act performed to strengthen approved behavior
Reward
The offer of money for helping to find a criminal or for returning lost property
Reward
Benefit resulting from some event or action;
It turned out to my advantage
Reaping the rewards of generosity
Reward
Bestow honor or rewards upon;
Today we honor our soldiers
The scout was rewarded for courageus action
Reward
Strengthen and support with rewards;
Let's reinforce good behavior
Reward
Act or give recompensation in recognition of someone's behavior or actions
Common Curiosities
What is a reward?
A reward is a benefit or recognition given after the completion of an action, used to acknowledge and appreciate the effort made.
How do rewards and incentives differ in purpose?
Rewards acknowledge past actions, while incentives are designed to motivate future actions.
Can rewards and incentives be used together?
Yes, many organizations use both rewards and incentives to enhance motivation before and appreciation after task completion.
What types of rewards are most common in workplaces?
Common workplace rewards include bonuses, extra time off, promotions, and public recognition.
Can rewards demotivate if not handled properly?
Yes, if rewards are perceived as unfair or inconsistent, they can lead to demotivation and dissatisfaction.
What is an incentive?
An incentive is a motivating factor or benefit promised in advance to encourage a person to perform a specific action or work towards a goal.
What role do rewards play in employee retention?
Rewards can significantly impact employee retention by making individuals feel valued and appreciated, thereby increasing loyalty.
Which is more effective, rewards or incentives?
Effectiveness depends on the context and the individuals involved; incentives can drive action, while rewards can reinforce behaviors.
What are the psychological impacts of rewards and incentives?
Rewards can enhance feelings of satisfaction and loyalty, while incentives can increase engagement and effort.
How do incentives influence team dynamics?
Properly aligned incentives can foster teamwork and collaboration, but if misaligned, they can cause competition or conflict.
How should incentives be structured to be effective?
Incentives should be clearly tied to attainable goals, desirable enough to motivate, and aligned with the values and needs of the individuals.
Why might incentives fail to motivate?
If the goals are unclear, the rewards unappealing, or the outcomes perceived as unattainable, incentives might fail to motivate effectively.
Is the timing of rewards important?
Yes, timely rewards are crucial as delayed recognition can diminish the impact and relevance of the reward.
Are incentives always monetary?
No, incentives can also be non-monetary, such as flexible working conditions, recognition, or professional development opportunities.
What should be considered when choosing between rewards and incentives?
Consider the goals, the individuals' motivations, and the desired outcomes; incentives are best for driving future behavior, while rewards are best for acknowledging past achievements.
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Written by
Urooj ArifUrooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.
Edited by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
