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When Financial Incentives Backfire - Ideas for Leaders
Idea #180

When Financial Incentives Backfire

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KEY CONCEPT

Companies often rely on performance-based systems to reward their ‘smartest’ or most productive employees. But financial incentives can have unintended consequences. New research suggests that the smartest workers also tend to be the most skilled at playing performance-based systems for personal gain. Leaders need to look closely at the way they structure and design incentives — and reduce the risks of employees concentrating their efforts on activities that trigger rewards.


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Idea conceived

June 1, 2013

Idea posted

Jul 2013
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