Target-based bonuses boost lying and cheating: Study

Fair base salary and audits can decrease likelihood of fraud
By Shannon Klie
|Canadian Payroll Reporter|Last Updated: 11/15/2010

Target-based bonuses are a common form of incentives but often encourage employees, including the top brass, to lie about their performance, according to a new study.

People are more likely to lie about their performance if they know they will be rewarded for attaining a specific target, found the study by professors at the University of Guelph in Guelph, Ont., and Ryerson University in Toronto.