Incentives: meaning, definitions and examples

Used to describe rewards or benefits that encourage someone to do something, usually in a business or economic context.

• The company offers financial incentives to employees who meet their targets
• Government incentives for renewable energy are increasing

Refers to the internal or external factors that stimulate a desire or willingness to do something. Commonly used in personal development and psychological contexts.

• Her main motivation for learning French is to travel more easily
• The team's motivation dropped after their third loss in a row

Refers to something that incites an action or reaction, often used in economic contexts to describe policies or actions meant to spur economic activity.

• The government's stimulus package included tax cuts and increased spending
• Exercise acts as a stimulus for the production of endorphins

Often used in a legal or formal context to refer to something that persuades or influences someone to do something. It can sometimes have a negative connotation if it implies undue influence.

• The suspect was offered money as an inducement to change his testimony
• The contract included various inducements for early completion