Why have an Incentive Program?
Finding ways to motivate employees and ensuring your culture is driving the correct behaviors in the workplace are some of the most complex challenges for construction companies. One of the best ways to encourage, drive, and reward employees is to create a structured Incentive Program.
While money is not the only motivator, it is typically the ‘biggest’ motivator and the easiest for employees to recognize. As a business owner, you have the ability to set up a compensation and incentive program that motivates your employees to make positive contributions to your company by encouraging behaviors that lead to profitability, efficiency and success.
The best programs are often tied to project and/or overall company financial performance, and include KPIs (Key Performance Indicators) that measure each employee’s performance of their specific role in the organization.
Once you have defined the specific roles and responsibilities for your company (learn about Operational Excellence), the next step is to identify the core activities for each role that help ensure success and figure out ways to measure them. This provides clarity for both the company and the employees – you all know what you’re going to measure, how you’re going to measure it, and what the expectations are (the KPIs). Now you’re ready to build an Incentive Program that rewards them for achieving these KPIs, thereby driving both performance and culture in unison.
A well-designed program typically makes the company money as it rewards them for their talents and keeps them motivated to perform at a high level, day in and day out. It also makes for a powerful Recruiting tool to attract talented employees and set you above your competition.
Designing your Program
We work with you to determine the financial payout structure, including funding sources, weighting of KPIs, and actual payout calculations that both your company and employees can rely on.
Learn more about the best practices when designing an incentive program.
Read about Incentive Programs
Read about Incentive Programs for Project Managers
Read about Incentive Programs for Estimators
Listen to Adam Cooper Discuss Incentive Plans on the Competitive Contractor Podcast
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