When I was at a former employer, one of the counter-offers they used to try to keep me on board was a plan to "reward me for innovative ideas" contributed to the organization, based on a "scale." This was interesting I thought, how the hell can they "measure" the ideas? Yes, I'm sure that you can in some way, shape, or form, but I wasn't willing to stake a portion of my salary on it.

Shortly after that, a book called Ideas Are Free, covering the very subject of "the value of an idea", came onto the market. I'm glad I made the decision that I did. Here are some of the pitfalls of rewarding for ideas, via the Innovation Weblog.

• The problem of accurate measurement.
  
• Rewards cause idea myopia
  
• The problem of fairness & equitable reward for all idea contributors
  
• Reward programs may tempt managers to behave badly
  
• Reward programs can create unnecessary overhead

For best results, the authors recommend that if an organization must offer rewards, the program should have three attributes:

1. It should base the rewards on simple aggregate measurements: For example, all employees who contribute at least two ideas in the last calendar quarter will receive a bonus based on a gain-sharing program. If employees’ ideas improve the company’s performance, everyone benefits.
   
2. It should distribute the rewards equitably to all employees using a fair and transparent method.
   
3. It should be integrated as much as possible into how the company already works – into its existing culture and values.