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incentive

/ɪnˈsɛn.tɪv/
IELTSAcademic
noun

Something offered to encourage a person to take action or work harder. It is usually a benefit like money, a prize, or a special deal, promised before the action happens.

  • The company offered a cash bonus as an incentive to meet targets.
  • Tax breaks are a major incentive for businesses to invest locally.
  • Free gifts act as an incentive for customers to sign up.
adjective

Used before a noun to describe something designed to encourage better performance or action. This use is common in business and formal writing.

  • The firm introduced an incentive scheme for its sales team.
  • Incentive pay helped reduce staff turnover significantly.

Adinary Nuance

The closest neighbors of "incentive" are motivation, reward, inducement, and stimulus — but they are not freely interchangeable. The most important distinction is timing: an incentive is promised before you act to encourage you, while a reward is given after the action is already done. Motivation is broader and can be internal (ambition, passion) or external, whereas an incentive is always external — something another party offers you. Inducement is a near-synonym but carries a slightly suspicious tone, sometimes hinting at manipulation or even bribery, so avoid it in neutral business writing. Stimulus is more at home in economics or scientific contexts ("fiscal stimulus"), making "incentive" the better everyday and academic choice when writing about human behaviour.

In other languages

Vietnamese
Động lực khuyến khích
Spanish
Incentivo
Chinese
激励措施
Japanese
インセンティブ
Korean
인센티브

Etymology

From Latin "incentivus," meaning "setting the tune" or "provocative," derived from "incinere" (to strike up a tune, to incite), from "in-" and "canere" (to sing). It entered English in the 15th century, first in legal and philosophical texts, to mean something that stirs a person to action.

Common phrases

financial incentivetax incentiveprovide an incentiveincentive scheme

Synonyms

Related words

Frequently asked questions

What is the difference between 'incentive' and 'reward'?
The key difference is timing. An incentive is offered before you act — it is meant to motivate you. A reward is given after you have already done something. A company offers an incentive bonus to encourage you to hit a target, and gives a reward once you achieve it.
Is 'incentive' formal? Can I use it in IELTS writing?
Yes, 'incentive' is academic and widely accepted in IELTS Task 2 essays. It fits naturally in sentences like 'Financial incentives encourage employees to perform better.' It is also common in business, economics, and policy writing.
What is the difference between 'incentive' and 'motivation'?
'Motivation' can be internal (your own drive or passion) or external. An 'incentive' is always external — something another person or organisation offers you to push you into action. You have motivation, but someone else gives you an incentive.
Can 'incentive' be used as an adjective?
Yes, but only before a noun. Common examples are 'incentive pay,' 'incentive scheme,' and 'incentive programme.' You would not say 'this is incentive' — in that position it must be a noun.