Incentivization

What is incentivization?

Incentivization, also spelled incentivisation, is the use of rewards or other consequences to change the attractiveness of an action. Examples include a bonus tied to completed work or a voucher for attending an appointment. The task is to create an arrangement that makes the wanted action more attractive, then check whether behavior actually changes.

Incentives and intrinsic motivation

Intrinsic motivation means doing an activity because it is interesting or satisfying. It is useful to distinguish this from an external incentive offered for doing it. Enjoyment is not simply another reward that an organization can supply.

A meta-analysis by Cerasoli, Nicklin, and Ford (2014) found that intrinsic motivation and incentives both predicted performance. Their relative importance varied with the outcome and how rewards were tied to performance. Intrinsic motivation was more closely related to quality; incentives were more closely related to quantity. The two were not invariably opposed.

Examples of incentivization

• In a workplace, a bonus can be tied to completed work.
• In education, recognition can be tied to an achievement.
• A health program might offer a voucher for attending a session.

The common feature is a consequence made contingent on an action or outcome, not a guarantee of lasting change.

Design and evaluation

An incentive arrangement should specify who can receive it, what behavior or outcome earns it, and when it is delivered. Evaluation should measure the intended result and possible unintended effects, such as prioritizing a rewarded count over quality. Also check whether the reward matters to the people involved and whether the target is within their control. Neither “intrinsic is always better” nor “pay more” is a sufficient design rule.