Final answer:
Employee incentive programs are debated among experts. The efficiency wage theory suggests that paying employees more than market conditions dictate can lead to increased productivity and motivation. However, such programs may also reduce the incentive to work for some individuals.
Step-by-step explanation:
Employee incentive programs are widely debated, and experts have varying opinions on their effectiveness. One argument is based on the efficiency wage theory, which suggests that paying employees more than market conditions dictate can lead to increased productivity and employee motivation. This theory states that employees who receive better pay than others will work harder and stay with the current employer to avoid a decline in salary. Another viewpoint is that such programs may reduce the incentive to work because some individuals may choose to work fewer hours but still end up with more income.