HBR IdeaCast

When Sales Incentives Backfire

Share this episode
Anyone with this link can open it.
Share Link
Start at 0:00

This episode isn’t summarized yet

Create a free account and summarize it. In a few minutes you’ll have the key takeaways and a section-by-section summary.

Show notes

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.”

Couldn't load the audio. A blocker may be stopping the show's tracking links. Open the file