When Incentives Sound Good in Theory but Flop in Reality

Some time ago, a new director took over our front office and was determined to eliminate a years-old backlog. To spark momentum, they rolled out incentives meant to ignite friendly competition. The top performer would get the director’s personal parking spot for a day, a cash award equivalent to four hours of pay, and “bragging rights” as a cherry on top. It was a foolproof plan to motivate the troops, except it didn’t work at all.

The parking spot was too far from where employees actually worked, which made it more of a scenic hike than a perk. And four hours of cash? Not enough to convince people to crunch extra work on top of an already heavy workload. After a few weeks, handling the backlog became mandatory.

In a follow-up meeting, leadership sat in genuine astonishment, wondering why everyone wasn’t jumping for joy. “Who doesn’t want more cash?”, a leader lamented. Meanwhile, employees were asking who wants more work.

Why Incentives Miss the Mark

Leaders often assume that what motivates them should motivate everyone else, which is how well‑intentioned perks end up gathering dust. The real issue is not the incentive itself but the gap between what leaders value and what employees actually need.

A few practical reminders help close that gap.

• Understand what people truly value. Employees respond to incentives that solve real problems, which means leaders need to understand the daily friction points that shape their work. A parking spot that adds steps to someone’s commute is not a reward. A small cash award that requires extra hours on top of an already full plate is not compelling. Leaders who take time to learn what matters to their teams design incentives that feel relevant instead of random.
• Match the reward to the effort. Backlog work is tedious, time‑consuming, and often invisible. When the effort is high and the reward is low, participation drops. Leaders should calibrate incentives so the exchange feels fair, which signals respect for people’s time and energy. When the reward reflects the reality of the work, engagement rises naturally.
• Check assumptions before launching a plan. Leaders sometimes fall in love with their own ideas, which makes it easy to overlook practical flaws. A quick pulse check with employees can reveal whether an incentive is motivating or mildly amusing. This small step prevents misfires and builds trust because people feel included in shaping the solution.

Incentives work when they align with the lived experience of the people doing the work. A parking spot that requires a commute isn’t a perk. A cash award that adds to a heavy workload isn’t generous. It’s just more work. The next time you design an incentive, ask your team a simple question: Would you actually want this? If the answer is anything but yes, it’s time to go back to the drawing board.

Adeline (Addy) Maissonet is a senior advisor on contracting policies and procedures within the Office of the Secretary of War, U.S. Department of War (DoW) and the agency’s representative on the Department’s views on proposed legislation to Congressional members, their staff, and committee staffers. She leads the development and implementation of Department-wide procurement policies for commodities and services, within her portfolio. Prior to her current role, Addy served as a Division Chief and Contracting Officer with unlimited warrant authority for the U.S. Army Mission and Installation Contracting Command (MICC) – Fort Eustis, Virginia. Prior to joining the MICC, Addy served as a Branch Head for the Mid-Atlantic Regional Maintenance Center (MARMC), Norfolk, Virginia, with unlimited warrant authority. She also held other procurement positions with the U.S. Navy. Addy holds an MBA in Management and Contracting Level III Certification under the Defense Acquisition Workforce Improvement Act. She is a graduate from Cornell University’s Executive Leadership Certificate Program and Harvard University’s Business Analytics Certificate Program. In her free time, Addy enjoys hiking and overlanding with her family and friends.

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of the Department of War.

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