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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.”
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[HBR IdeaCast podcast series]
HBR IdeaCast
Episode 1018
When Sales Incentives Backfire
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A conversation with researchers Tim Gardner and Colin Wong on how salespeople game the system.
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March 18, 2025
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.”
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Related Topics:
- Sales team management
- Managing employees
- Business ethics
- Employee incentives
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- Customer experience