[Alan] Johnson says companies get into problems when their culture is based on letting different kinds of infractions like cheating, misreporting, and harassment slide “as long as the money is coming in.”

Another way to curb misreporting is to make sure early on that people have the right skills and the capacity to succeed in their role, he notes. Moving people to more appropriate jobs or even out of the company will reduce desperate, emotion-based reporting decisions that could hurt the company’s bottom line.

There is also the argument that removing incentives entirely means that, as Johnson puts it, “no one will cheat but then no one will care, either.”

Human Resource Executive / March 6, 2019