incentive

/ɪnˈsɛntɪv/
motivation to act

The company offers a bonus as an incentive for employees to meet sales targets.

The company uses a bonus to motivate employees to achieve their sales goals.


formal

Something that motivates or encourages someone to do something, especially something that provides a financial or material reward.

Tax incentives were introduced to encourage investment in renewable energy.

The government created financial rewards to promote investment in clean energy.

The promise of a promotion served as an incentive for her to work harder.

She was motivated to work harder because she was promised a promotion.

Incentives can be positive (rewards) or negative (penalties), though the term typically implies positive motivation.

Collocations

financial incentivea reward that involves money or financial benefitstax incentivea reduction in tax to encourage specific behaviorperformance incentivea reward given for achieving specific goals or targets

Pro Tip

Use 'incentive' for rewards, not punishments

While 'incentive' can theoretically include negative consequences, it is almost always used for positive rewards. For punishments or deterrents, use 'disincentive' or 'penalty'.

Gold Rule

Incentives drive behavior

Incentives are designed to encourage specific actions. Always pair the incentive with the desired behavior to ensure clarity.

Word Origin

From Latin *incentivum* ('something that incites'), derived from *incitare* ('to incite'), from *in-* (into) + *citare* (to move, excite). The word entered English in the 15th century with the sense of 'incitement to action,' later developing its modern meaning in the 19th century.

Usage Notes

Incentive is often used in business, economics, and psychology to describe rewards that drive behavior. It can refer to tangible rewards (money, gifts) or intangible ones (praise, recognition). The term is closely related to 'motivation' but typically implies an external reward rather than internal drive.

Word Breakdown

in-
into or toward
prefix
+
-cent-
to sing or incite
root
+
-ive
tending to
suffix
English Dictionary