What's the Problem With Our 15% Sales Incentive?

The most common incentive arrangement that we see down in the world is a fixed wage, plus a bonus attached to some performance hurdle. With our 15% sales incentive, an employee might hit that goal early on in the quarter. But instead of seeing if they could double their sales, they could delay those sales until the next quarter so that they can more easily hit next quarter's goal and get another bonus.