Incentive Compensation for Contractors - Next Steps

When starting an incentive compensation program, the best thing you can do is start relatively simply and create a good plan for reviewing the results and then improving the program.

Courtney Stearns Profile Picture
Share
Contributors Sue Weiler-Doke Courtney Stearns
  • Remember that there isn't a "one" best way.
  • There is no program that will make everyone happy.
  • There is no program that will serve your needs forever because the market, your business, and your people are constantly changing.

The first questions you should ask yourself are:

  1. Is your culture already supporting an incentive program?
  2. What truly incentivizes your people? Higher base with modest incentive or lower base with higher incentive compensation? Or some other type of reward? Don’t just listen to what they say, observe how they act.
  3. What is the company really trying to accomplish with this incentive program?
  4. What behaviors will this program drive if things are going bad?

In most cases, change the program slowly and help it evolve over time. Typically, short-term incentives provide short-term results.

Ask yourself this one question before making any changes: Does the program need to change or does understanding need to be increased through education?

This is Part 13 of a 20-Part Series


Topics Covered in the Series Include:

  • Who Benefits?
  • Calculations
  • Prerequisites
  • Behaviors
  • Alignment

All relationships start with a simple conversation. Let’s schedule some time to talk about your specific challenges and opportunities.


Incentive Programs for Contractors
Every successful and profitably growing contractor we work with has a comprehensive and integrated set of incentive programs in place at all levels of the organization. These programs reinforce the daily actions and behaviors that make them successful. ...

Incentive Programs for Contractors
Every successful and profitably growing contractor we work with has a comprehensive and integrated set of incentive programs in place at all levels of the organization. These programs reinforce the daily actions and behaviors that make them successful. ...

Steve Romero - 50 Hour Weeks
One of the best measures of a leader is how many other leaders they have built. A huge part of leadership development is having mentors and being a mentor to others.
The ABCs of Strategic Market Choices
Strategic Market Choices for where a contractor chooses to play must be balanced between diverse enough, large enough, and focused enough. These are the highest leveraged decisions that leaders of construction businesses make.
4P Troubleshooting Undesirable Outcomes
When you are not getting the results you expect, start your troubleshooting process by looking at the People, Principles, Process, and Practice.