Incentives encourage action to do (or not do) something, typically different or more than what is being done now. In other words, an incentive is intended to motivate incremental behavior. But what’s the BEST way to do it?
Individual happiness is informed by how we perceive ourselves in comparison to others. However, that information is asymmetrical. In other words, I have very detailed information on my own life but only vague impressions of your life. But that doesn't stop us from comparing. See how we can address asymmetrical perceptions in the workplace.