There are 2 main types of incentives:
- Individual incentives - Incentives are given based on an individual's work.
- Group incentives - Incentives are given based on a group's work (or even the whole company's).
The incentives can be offered in different ways such as:
- Piece rate - Employees are paid for each product that they produce.
- Profit sharing - Receiving a one off bonus for high sales.
- Measured day work - Payment based on the amount of work done over a period of time.
- Profit related - Receiving a percentage of the sales revenue.