An incentive is something that motivates an individual to perform an action. The study of incentive structures is central to the study of all economic activities (both in terms of individual decision-making and in terms of co-operation and competition within a larger institutional structure). Therefore, economic analysis of the differences between societies (and between organizations within a society) amounts to characterizing the differences in incentive structures faced by individuals involved in these collective efforts. Incentives aim to provide value for money and contribute to organizational success. As such the design of incentive systems is a key management activity.
To provide with an incentive. from 20th c.
“The boss will incentivise the workforce by offering bonuses.”
To provide incentives for; to encourage.
“The US government seeks to incentivize home ownership through a favorable tax system.”
To provide incentives to.
“They effectively incentivized people to overinvest in home ownership.”