An incentive is something that gives you a reason to act. A reward is one kind of incentive: it makes a particular action more worthwhile.
People tend to do more of what gets rewarded. If we reward the wrong thing, we may get more of it instead of the result we wanted.
A simple example
You offer a child $1 for every bag of leaves they collect. You want a clean yard, but the child could earn more by filling lots of bags only halfway.
Your rule rewards the number of bags, not the amount of leaves collected. Paying for a clearly defined section of yard to be cleared would better match the result you want.
Principles
People respond to the rewards, costs, and constraints they actually face.
Reward the outcome you want, and check whether the rules encourage gaming or shift costs onto others.
Why this matters
We must reward the outcome we actually want.
Before introducing a rule or reward, check how people could benefit from following it in ways that defeat its purpose.
Learn more & discuss
Discussion questions
For individual reflection or classroom discussion. These questions are not graded.
What does the payment rule reward: a clean yard or the number of bags?
How would you change the reward to encourage the result you want?
Think of a reward at school or work. What behavior does it encourage?