incentive

in-SEN-tiv /ɪnˈsen.tɪv/
nounB2GMATTOEFLIELTS
businessacademicgeneral

A thing that motivates or encourages someone to do something or work harder.

Usually refers to an external reward or condition designed to trigger action.

The story behind the word. In ancient Latin, 'incentivus' meant playing an inciting tune on an instrument to lead troops into battle or incite dancers. Just as a lively beat stirs people to move, an 'incentive' today stirs people to act.

Word relationships

  • stimulus: 'Stimulus' triggers a quick response or activity, while 'incentive' offers an enticing goal.
  • inducement: 'Inducement' often has subtle connotations of persuasion or bribery.
  • disincentive: A factor that discourages or deters a specific action.
  • deterrent: Something intended to prevent action through fear or difficulty.

Commonly confused with

  • initiative: 'Initiative' is the capacity to take action independently; 'incentive' is the external reward.

Word family

  • incentivize (verb): To provide an incentive for doing something.

Collocations

  • financial incentive
  • powerful incentive
  • perverse incentive
  • create an incentive

Idioms & expressions

  • carrot and stick

Example sentences

  • "The company offered a financial incentive to employees who exceeded their targets." Corporate policy
  • "Tax breaks served as an incentive for clean energy development." Public economic policy

Memory hook

An INCENTIVE puts CENTS into your pocket to make you work. Incentive = a tune that strikes up action.

When not to use

Do not confuse with internal emotional passion, which is drive or zeal.

Fun facts

  • 'Incentive' originally belonged to the vocabulary of music before joining economic terminology.
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