> The best solution (and I believe a bunch of research backs this up) is to better incentivize your line workers and reward them appropriately. I know one study in particular that showed broad-based stock option ownership among employees was correlated with stronger company results, while options concentrated just among senior execs was not correlated with business success.
It can be also quite easy to make mistakes with these incentivisation schemes, fe in finance I've understood they can quite commonly cause problems.
Pretty much any incentive scheme can cause problems if it’s poorly thought through. You also need people paying close attention to any abuses.
I knew of one company where the Sales team were compensated based on the value of orders booked by a given date at/near the end of each month. That monthly value was unaffected by any orders cancelled from the previous month. What happened, of course, was that they would persuade people to place orders to be cancelled once the date passed. The value of the orders was always decent on the date in question, so the Sales staff always did quite well but the same orders might be placed, cancelled, and placed again multiple times over the year before they properly materialised (if ever).
It can be also quite easy to make mistakes with these incentivisation schemes, fe in finance I've understood they can quite commonly cause problems.