There are a number of ways to incentivize employees. Employers use incentives to attract workers and retain talent. They may be financial based or not. The employer's responsibility is to determine what type of incentive is best, based on the workplace, industry and employee satisfaction.

Wage Incentives

Restructuring wages may be an incentive that employees appreciate based on how current wage rates compare to other employers in the industry. Wage-based incentives also take into consideration how competitive the employer's wages are in its geographic area. An example is a sign-on bonus, where employers try to recruit candidates in highly competitive fields. Being the employer of choice is sometimes translated into paying fair wages or rewarding recruits for selecting your company over another.

Performance Incentives

Rewarding employees who meet and exceed their job expectations is another incentive. Performance evaluations shed light on the employee's ability and desire to succeed in the job. Employers provide incentives to motivate high-performing employees with liberal wage increases and promotions for excellent work. Retention bonuses create a financial incentive to stay for employees who have considered resignation or retirement.

Employee Recognition Incentives

Recognizing outstanding efforts and performance is another incentive form. Events like award banquets, contests and drawings are ways to reward employees who are nominated by peers, customers and managers. Employers may plan special outings and allow employees to invite family members and friends to share their recognition. Another way to incentivize employees is to reward service for milestone anniversaries, such as 10 or 20 years with the company.

Professional Development Incentives

Providing company-paid training opportunities is an incentive designed to encourage employees to achieve professional development goals. Training prepares employees to assume more responsible roles in the organization. It has the potential to motivate employees to perform above expectations. This type of incentive is used for skill building and personal development.

Other Incentives

Offering perks like designated parking spaces, free lunches and merchandise with the employer logo are creative incentives that do not pose a big expense to the employer. Company logos can be placed on t-shirts, jackets and other apparel. These kinds of gifts also can become part of recognition events by giving special items to deserving employees.