HR Glossary

What is Incentive Pay?

A form of compensation designed to motivate employees by tying additional earnings to the achievement of specific, predefined targets, goals, or milestones.

Why it matters in hiring

Incentive Pay comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with I

• I-9 Form
• Implicit Bias
• Income Protection Insurance (UK / Australia)
• Independent Contractor
• Induction Program
• Industrial Disputes Act
• Internal Mobility
• Internal Recruitment

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.