Should Incentives be a part of Remuneration?

Should Incentives be a part of Remuneration?

Incentives are the variable rewards that are granted to the employees according to their performance. It is also referred as 'payment by results'. Incentives are generally paid to boost the morale of the employees. They act as the motivators for employees to impart higher production & qualitative productivity. It is difficult to motivate employees to show better performance with fixed remuneration. But, positive response is surely received when incentives are included as a part of total remuneration.