Why Do This, Get That Incentive Programs Are Risky and How to Use Incentives More Safely

The practice of total quality management and established psychological factors suggest that do-this, get that reward structures can cause more harm than good.

Click here to subscribe to RRN weekly, and here for an RRN media kit.

Frequently in the world of incentives, suppliers suggest the need to keep rules simple. Of course, if people don’t understand the rules, they can’t effectively play. The problem is: if the program is so simple that it’s simply do-this, get that, you are headed for trouble in a sales or non-sales or channel engagement program.

“Do-this, get-that” incentive programs promise clarity and accountability by tying rewards to specific outcomes. In practice, they often introduce hidden risks if not carefully designed.

First, narrowly defined rewards can pressure people to cut corners. When results are rewarded without also measuring how those results are achieved, employees may sacrifice quality, ethics, customer experience, or teamwork to hit targets. This concern has long been highlighted in quality management thinking (e.g., W. Edwards Deming), which warns against managing solely by results numbers.

Second, these programs often ignore the complexity of performance measurement. Results are rarely driven by one person’s effort alone—market conditions, system constraints, leadership decisions, and cross-functional dependencies all influence outcomes. Rewarding individuals for results they don’t fully control can feel unfair and demotivating.

Third, behavioral science research shows that purely transactional rewards can weaken intrinsic motivation, especially when used repeatedly for routine work. See Self-Determination Theory and the Facilitation of Intrinsic Motivation, Social Development, and Well-Being by Richard M. Ryan and Edward L. Deci, University of Rochester. They found that extrinsic rewards, such as tangible incentives tied to task performance, can undermine intrinsic motivation. When people perceive their actions as being controlled by external rewards, their sense of autonomy diminishes, leading to reduced interest, excitement, and confidence. This can negatively impact performance, persistence, and creativity, the research found.

A simple yet balanced incentive program can start with a few key principles inspired by statistical process controls (SPC) and a focus on communication and training.

First, define a few meaningful performance metrics that reflect both outcomes and behaviors. Once you have a couple of meaningful metrics that cover both results and the quality of the process, you can keep the incentive program simple by using SPC principles to track performance trends over time. That way, you're not just saying "hit this number and get a reward," but rather encouraging continuous improvement. So, for instance, people can earn points for hitting sales goals, but also for participating in training or mentoring programs, demonstrating advanced product or job knowledge, or making more documented sales presentations.

Combine that with clear communication and a bit of training so everyone knows not just what targets to meet, but also the best practices to get there. Then, track accomplishment of the practices as well as the results. This helps ensure the program stays fair and focused on sustainable performance rather than just quick wins. Points can be allocated so that the results carry greater weight.

How to reduce risk:
• Measure behaviors and outcomes
• Account for system and environmental factors
• Use incentives as part of a broader performance and feedback framework

Incentives work best when they reinforce good judgment—not just short-term results.

Enterprise Engagement Alliance Services

Celebrating our 15^th year, the Enterprise Engagement Alliance helps organizations enhance performance through:

1. Information and marketing opportunities on stakeholder management and total rewards:
ESM Weekly on stakeholder management since 2009; click here for a media kit.
RRN Weekly on total rewards since 1996; click here for a EEA YouTube channel on enterprise engagement, human capital, and total rewards insights and how-to information since 2020.

2. Learning: Purpose Leadership and Stakeholder

Management Academy to enhance future equity value and performance for your organization.

3. Books on implementation: Enterprise Engagement for CEOs and Enterprise Engagement: The Roadmap.

4. Advisory services and research: Strategic guidance, learning and certification on stakeholder management, measurement, metrics, and corporate sustainability reporting.

5. Permission-based targeted business development to identify and build relationships with the people most likely to buy.

6. Public speaking and meeting facilitation on stakeholder management. The world’s leading speakers on all aspects of stakeholder management across the enterprise.