THE INVISIBLE SABOTEURS OF INCENTIVE SYSTEMS: HOW TO AVOID THEM

Create effective incentive systems is never just a matter of KPIs, percentages or scorecards. Behind every process there are organisational dynamics that, without meaning to, can undermine the results and motivation of teams.

Over the years we have observed five recurring archetypes that emerge in companies: understanding how they manifest themselves and how to deal with them can make the difference between a system that really works and one that generates frustration. But let's see together which archetypes we are talking about and how to prevent them from impacting the organisation's incentive system.

The Pharmacist: when measurement becomes an obsession

The pharmacist is the archetype of exasperated precision: he turns every activity into KPIs. Tickets closed, hours worked, meetings. Everything becomes measurable, often losing sight of the real value.

The lesson in avoiding the pharmacist? Few KPIs, clear and linked to concrete results. Measuring must help guiding strategic decisionsnot just creating decorative dashboards.

A concrete example comes to us from Google. By adopting the framework OKR (Objectives and Key Results), Google sets ambitious and measurable targets, estimating a completion of around 60-70 % as a positive result. By doing so, Google incentivises value- and impact-oriented efforts, not mere quantity of activity.

The Aerospace Engineer: The Perfection Trap

Unlike the Pharmacist, the Aerospace Engineer loves form and technical perfection. Evaluation sheets become complex laboratories of colours, levels and matrices, beautiful but incomprehensible to those who have to use them.

The risk is to transform the incentive system in a formal exerciseas is often the case in some divisions of large companies, where overly sophisticated boards prevent practical performance management. The solution? Simplicityclarity and intuitive tools. If a tired manager does not immediately understand the board, something needs to be revised!

Dr. Jekyll & Mr. Hide: impossible and contradictory goals

This archetype creates dangerous paradoxesincrease turnover without touching margins, accelerate processes without increasing errors, reduce costs without being noticed. Result: those who work with these goals are doomed to fail.

A real-life case concerns Microsoftwhich, until 2013, used the stack ranking to evaluate employees. This model forced managers to grade teams on a fixed curve, generating internal competition and frustration. When Microsoft eliminated it, it introduced continuous feedback and more qualitative evaluations, improving motivation and performance.

The message is clear: contradictory objectives or overly rigid systems risk sabotaging motivation and collaboration.

The Leviathan: visionary leadership becoming unattainable

Leviathan is charismatic, visionary and fascinating. It talks of meritocracy and valorisation, but when setting goals it emerges expectations out of reach. Unrealistic growth, perfect margins on PowerPoint, targets disconnected from the market: all this can demotivate even the best talent.

A virtuous example to defuse this organisational dynamic comes to us from Boeing (2025). The company restructured its annual incentive plan for more than 100 000 employees, linking 80 % of bonuses to overall financial performance and 20 % to operational indicators such as safety and quality. This made it possible to align incentives with concrete and collective results, avoiding unrealistic targets for individual units.

The lesson: always compare vision and reality, rely on concrete data and benchmarks, and create realistic and shared systems.

The Bureaucrat: the formality that paralyses

The Bureaucrat loves processes, but applies them without explanation, training or support. The cards arrive as cold PDFs, and the incentive system becomes a purely formal exercise.

When HR is not fully legitimised or prepared, managers are left alone with complex tools and the process loses any motivational value. The solution is to have HR aware and proactivecapable of guiding managers with clear tools and continuous training.

How to build an effective incentive system?

Building an effective incentive system means balancing clarity, simplicity and realismrecognise dangerous archetypes and ensure that each KPI generates real value. Only then will teams feel motivated, managers be able to lead effectively and the company grow sustainably.

Learn more about how to apply these strategies in your organisation and get support in designing effective incentive systems, contact usOur team of experts is ready to guide you step by step.