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incentive

in-SEN-tiv /ɪnˈsen.tɪv/

nounB2GRESATIELTSTOEFLGMAT

generalprofessionaleconomic

A thing that motivates or encourages someone to do something; a reward offered to stimulate effort.

Refers to a structured external catalyst (financial bonus, promotion, award) intended to drive specific behavior.

The story behind the word. From Late Latin 'incentivus' (that which sets the tune or incites). It originated in Latin music terms (incinere: to sing or play a tune that leads others) before shifting toward psychological and economic encouragement in the 20th century.

Word relationships

inducement: Inducement often carries a connotation of persuasion, sometimes bordering on bribery or temptation.
stimulus: Stimulus is any event causing a reaction, while incentive is an intentionally crafted goal-reward.

disincentive: A factor that discourages or deters a particular action.
deterrent: Something that prevents an action by installing fear or cost.

Commonly confused with

initiative: An initiative is a new plan or project; an incentive is a reward designed to encourage action.

Word family

incentivize (verb): To motivate someone by offering an incentive.

Collocations

financial incentive
create an incentive
strong incentive
perverse incentive

Idioms & expressions

carrot and stick

Example sentences

"The strategic performance bonus served as a powerful financial incentive for the sales team to exceed their quarterly revenue targets." Corporate Compensation
"Economics is grounded on a simple principle: people respond to incentives." Economic Literature (Steven D. Levitt & Stephen J. Dubner, Freakonomics (2005))

Memory hook

IN-CENT-ive: Adding CENTS (money) to IN-spire action. External reward driving action.

When not to use

Do not confuse with intrinsic internal desires, which are drives or motives rather than external incentives.

Fun facts

A 'perverse incentive' is an incentive that has an unintended, undesirable result contrary to the original intent—often called the Cobra Effect.