It has become a common concern of policy makers and enterprise managers on how to continuously motivate workers ever since the beginning of industrialization. The Soviet Union applied piece-rate system, a more common material stimulation to incentivize workers. For a long time, China has implemented measures that are driven by both spiritual encouragement and material encouragement, such as labor competition, performance awards, leapfrog promotion and so on to stimulate workers, which has worked very well. From the perspective of historical experience, the effective leadership of the party organization and the leading role model of Party members and cadres are the main reasons for the effectiveness of spiritual incentive measures. After reform and opening up, the incentive system in enterprises tends to prioritize material incentives for the management and the core technical team, but the spiritual incentives are relatively insufficient. Therefore it is urgent to strengthen party building in enterprises. Party members and cadres are required to take the lead and do a good job in leading and managing workers, so as to transform the spiritual incentives into employees’ highly conscious execution in actual work and provide inexhaustible impetus for the development of enterprises.