Question

Which of the following is a financial incentive

(a)Promotion

(b)Stock Incentive

(c)Job Security

(d)Employee Participation

Answer 1

Stock incentive is a kind of financial incentive. It is a direct monetary incentive wherein the employee is offered the shares of the company at a price lower than the market price. The other three options as given in the question, that is, promotion, job security and employee participation are non-financial incentives that focus on psychological and social needs of the employees.