Well-Intentioned Incentives, Undesirable Outcomes

There is a story of a software development company that paid engineers to fix bugs.

You could think that it’s a great idea for a bug-free code. But what impact did it have on the company?

Engineers began intentionally writing buggy code to profit from fixing those bugs.

I’ve heard this story multiple times, though I’m not sure of its origins or even its authenticity.

Regardless, the lesson here is to be careful when creating incentives for your team. What is measured affects our actions, and sometimes well-intentioned incentives can bring undesirable outcomes.

Have you ever worked at or with a company that had a similar problem?