Incentive risk in service companies : theoretical approach

The aim of this article is to present the concept of incentive risk, i.e., a risk associated with undertaking incentive activities aimed at shaping employee involvement and attitudes towards the enterprise. The study was performed based on desk research method that comprises the analysis of the literature on the subject and reports published in the industry. The article indicates that all decisions concerning the motivation process bear risk, which is most often connected with the lack or an incorrect evaluation of the degree of satisfaction of individual employee needs. In order to lower incentive risk, evaluations in this scope should be constantly carried out, as the hierarchy of incentives for individual employees may be different.