The right kind of performance incentive will motivate an employee to reach for new heights of achievement. Strong performance incentives act as beacons for employees, shining in the distance, acting as visible, attainable goals. If the performance incentive is something an employee really wants, he will do what is necessary to achieve it.

However, not every employee is motivated by the same thing, and different employees have different inherent abilities. Putting together performance incentive and bonus programs that work may involve creating individual incentives for each employee, depending on that employee's skills and goals within the job. Alternately, incentives and bonuses could be tied to performance within a department or among a team. This way, the various members of these groups can motivate each other toward a common goal, if the promised incentive is something that appeals to the group as a whole.

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