When rewards distort behavior: Cheating, addiction, and short-sightedness

Analysis of three negative consequences when rewards are misused: cheating behavior, dependency like addiction, and strategic shortsightedness. An applied perspective for leadership and human resource management.

When Rewards Distort Behavior: Cheating, Addiction, and Shortsightedness

We have seen that rewards can kill motivation, joy, and creativity. But more dangerous consequences begin to emerge when rewards become the center of all behavior:

• Blurring ethical boundaries
• Creating addiction-like dependence
• Causing people to lose long-term strategic thinking

If you see colleagues or yourself losing motivation amid stressful deadlines, this article may serve as a gentle but necessary reminder.

1️⃣ When goals are too focused, ethical behavior can become blurred

We often hear: "No goal means nowhere to go." But according to studies from Harvard, Wharton, and Northwestern, not all goals are good.

Especially when goals are externally set – like KPIs, sales targets, or year-end bonuses – and come with big rewards, they can make people narrow their ethical perspective to achieve results at any cost.

📌 Real-life examples:

• Sears: Mechanics cheated on fees to meet targets.
• Enron: The largest accounting scandal in U.S. history due to excessively strict financial goals.
• Ford Pinto: Cutting safety inspections to meet launch deadlines.

Common theme: When rewards are everything, then ethics become a choice – no longer the foundation.

2️⃣ When rewards become addictive

Anton Suvorov – a Russian economist – asserts that repeated rewards create behavioral dependence.

💡 Everyday example: The first time you pay your child to take out the trash – they do it. But if you don’t pay next time – the trash stays.

In businesses:

• Big KPI bonuses → Employees see them as a default entitlement.
• No more bonuses → Dedication disappears.

From a neuroscience perspective: Research by Brian Knutson shows:

• Anticipation of reward → Brain releases dopamine (similar effect to drugs).
• Initially: excitement. Then: need to increase the dose (higher rewards).
• If no increase → Positive feelings fade. Motivation erodes.

Consequence: Rewards shift from “motivation tools” to “budget drugs.”

3️⃣ When rewards shorten vision – killing long-term strategy

Many listed companies are “obsessed” with quarterly financial results. They:

• Neglect long-term research – development – innovation.
• Focus on short-term targets to earn bonuses or beautify reports.

Aftermath: Immediate growth – long-term weakening.

🎯 Personal examples:

• Paying employees to read 3 books → They stop at the 3rd.
• Paying someone to go to the gym → When the benefit ends, they quit.

Reason: When the reward ends, the journey stops too. There is no attachment to growth or intrinsic purpose.

📌 A perspective for leaders

If you are leading a team, ask yourself:

• Are employees acting just for rewards?
• Are they lacking long-term thinking?
• Do they dare to try new things, make mistakes, and be creative?

If the answer is “No,” your organization is very likely operating on an outdated motivation model – “Do well, get rewarded; do poorly, get punished.”

And at that point, leaders need to pause and ask themselves:

• Am I creating growth opportunities or pressuring to avoid KPIs?
• Are employees learning new skills, or just learning to “pass the test”?

🔚 Summary – Reward: Reason or tool?

Rewards – if misused – can become dangerous.

• ❌ When they are imposed instead of inspiring.
• ❌ When linked to short-term benefits instead of long-term goals.
• ❌ When they become the main motivation instead of being a supportive recognition.

✅ You do not need to eliminate rewards. But you need to redefine their role within a development strategy: