Properly structured compensation plans can align employees with your mission.
Q: I have a small contracting business doing around $5M annually with 15 employees. Should I implement an employee bonus program?
A: Yes. Absolutely
- Pay for performance
- Everyone should have some type of pay for performance
- Yes, it takes some work but the benefits are well worth the effort
- Set targets, track and reward
- The psychology behind it
- Everyone tunes into their favorite radio station WIIFM (what’s in it for me?)
- Bonus programs provide the answer
- Employees will consider the long-term benefits over some of the short-term effort
- Go the extra mile to find better pricing
- Fight for proper credit on errors
- Some guidance
- Not just based on projects
- Align with company mission and long-term goals
- Project goals can often be at odds with long-term goals
- Include everyone in the program
- Rewards can be more than just monetary
How can you improve your compensation plans?
Does your plan align with your company mission?
Do we include everyone and award for actual contribution?
How can we make it better?
Set up a solid bonus / P4P program
Set goals then track, monitor and coach