Incentives That Backfire

All of us who design, implement and even just live in the world of incentives (cash or otherwise) know the potential for these plans to backfire on us - sometimes stupendously.  The design of incentives - even the decision of whether or not to use incentives - is a tricky and complex thing. 

Charles Green, author of the blog Trust Matters, makes this point in his post today When Incentive Backfire.  (If you aren't already familiar with Charles' blog, I strongly recommend you check it out.  It is one of my "must reads".)  He also recommends, as part of today's post, Alfie Kohn's book Punished By Rewards, which is essentially an indictment of incentive plans (along with gold stars, praise and other bribes).

I have read Kohn's book, as I recommend anyone in the reward profession do.  And I have posted my own response to his precepts.  So I couldn't resist adding a comment and a link to Charles' blog - which he graciously acknowledged, and shared back some excellent thoughts of his own as a comment to my Kohn post.

Got all that?

And please add your own thoughts to the exchange!

Comments

[Wally Bock]

You bet it's trick and complex, just like all the decisions about the systems and processes that make a business run. And just like all the systems and processes that make a business run there are three truths. There is no perfect system. Every system can be gamed. There are always unintended consequences.

[gautam biswas]

this is not at all a tricky thing nor it can be avoided. More importantly, when genuineness is proved incentives can be provided subject to scrutiny and close examination as well as excellent supervisory role.Incentives are part of overall compensation and in the matter of incentives various companies executives are found in placebo situation and those companies are also enlisted in the list of fortune 500 companies, may be exceptionally.