Incentive

An incentive is usually some sort of reward (or a threat of punishment) that persuades a person to complete a task. Many companies use incentives to entice new customers to their business. For example, car manufacturers offer incentives to consumers, such as 0% financing, cash back offers or lifetime warranties, to bring in business.

Of course, the main incentive for Americans is their paycheck. Performing tasks that go above and beyond one's responsibilities at a firm can result in a bonus for that individual or consideration for a promotion, while performing below expectations can lead to termination of employment, and loss of one's income.

Minneapolis 35W Bridge Collapse & Reconstruction

After the collapse of the 35W bridge in Minneapolis in 2007, incentives for finishing the bridge ahead of schedule had the potential of netting the company responsible for reconstruction $27 million, in addition to the original cost of replacing the bridge. On the other hand, missing the completion date would have resulted in a $200,000 a day penalty for every day past the target date. As a result of the incentives offered, the bridge was finished in September 2008, three months ahead of schedule.