Short-term Incentives

Short-term incentives are financial rewards given to employees based on their performance over a short period, typically a year or less. These incentives are designed to motivate staff to achieve specific goals, like meeting sales targets or completing projects efficiently. Common examples include cash bonuses, stock options, or performance awards. Unlike base salary, which is consistent, short-term incentives can vary significantly, reflecting individual or company performance. By aligning employee interests with organizational objectives, they aim to enhance productivity and drive results in the short term.