An incentive is something that tends to stimulate or spur individual or group action. A reward is something tangible or intangible that is given to an individual or group for a service. That means that bosses must consciously develop a profile of employee values by observing the reactions of people to various rewards, surveying employees about their preferences for rewards, and conducting tests of the influence of various awards on employee behavior and performance. In recent years, striking changes have occurred in the values of the American workforce. Contemporary employees tend to consider higher pay and benefits as the natural outcome of superior performance.
Traditional employees see longevity as the basic determinant of higher pay and more benefits.
Contemporary employees respond more positively to recognition by the organization and their supervisors than traditional employees whose objective was primarily one of avoiding criticism and punishment. Progress and development . Traditional workers typically had no such expectations. Jobs and work . Contemporary workers want jobs that are interesting and challenging.