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In the spirit of Martin Luther, who posted his theses as an invitation to debate, let me share two things I believe about incentive plans.

There is no perfect incentive plan. Every plan is unfair or unbalanced in some way.

Any incentive plan can be gamed. There are people who make it their life's work to game any and all systems the come in contact with.

Wally:

Thanks for weighing in!

As to the existence of a perfect incentive plan, I am with you. The idea that we could perfectly and predictably influence the behaviors of human beings through any reward system would be delusional, at best. Sound incentive plan design should mean that we have carefully considered the situation and context, reflected on the potential consequences (desired and undesired) of the plan in question, and come to the informed conclusion that the good things we believe can come from the plan far outweigh any potential for negative impact.

And yes, it would seem that there are those for whom gaming the system is a life purpose. In my book, the question then becomes: Are these people the ones we want populating our organization?

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About The Author

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    Compensation consultant Ann Bares is the Managing Partner of Altura Consulting Group. Ann has more than 20 years of experience consulting with organizations in the areas of compensation and performance management.

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