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 Profile PictureSue Weiler-Doke Courtney Stearns Profile PictureCourtney 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 Compensation for Contractors - Next Steps
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 Compensation for Contractors - Next Steps
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. ...

Setting the Conditions for Success
The contractors that will continue to grow profitably in the future are those that master talent development. Leaders must (1) setup the conditions for success with their team and (2) lead by example when it comes to their own development.
Stop Doing Things - Peter F. Drucker
The tendency as a leader’s role evolves is to keep adding things to their list of responsibilities and to their team. What’s important is to regularly pause and reflect about what you can STOP doing to allow for new ideas if they are really better.
Issue 7 of 9: Growth Strategy
Construction Ownership Transition Issue 7 of 9: In general, with all other key factors including cash flow, profitability, and customer satisfaction being equal, a contractor that is growing will be able to better handle an ownership transition.