When Sales Incentives Backfire

Sales commissions act as a crucial lever to increase revenue and
customers. But sometimes those incentives bring unintended
consequences. New research identifies eight ways that salespeople
across industries cheat or bend the rules to maximize their
gain—often at the expense of the company's bottom line and customer
loyalty. Huntsman School of Business professor Timothy Gardner and
consultant Colin Wong explain these tactics, like sandbagging,
falsifying data, and giving excessive discounts to close deals. The
researchers also share how company leaders can audit, correct, and
monitor an incentive program—and when they should let some
practices slide to maintain productivity and motivation. Gardner
and Wong are coauthors of the HBR article “How Salespeople Game the
System.”