Aside from the more general word “Motivation” (f.), the two most common German words for “incentive” are either “Anreiz” (m.) or “Ansporn” (m.). The first one includes “Reiz” (m.), which means “charm”, “attraction” or “appeal”, and the latter includes “Sporn” (m.), which means (and is closely related to the English) “spur”, as in the metal worn on the heels of riding boots used to direct horses.

The word “incentivize” (or “incentivise”) does not really exist in German, so the construction “jemanden einen Anreiz schaffen” (literally “to establish an incentive for someone”) is used. However, “anspornen” can also be used as a verb in the sense of “to encourage” or “spur on”.

An “incentive system” is “Anreizsystem” (n.) or “Leistungssystem” (literally “performance/achievement system”) in German. A “tax incentive” is “Steueranreiz”.

Examples:

– “Der Läufer wurde vom Publikum angespornt.” – “The runner was spurred on by the audience.”
– “Wir müssen ihr einen Anreiz verschaffen mehr zu arbeiten.” – “We have to create an incentive for her to work more.”