Posted by:jamie
on
18 months ago
Another thing to thing about is giving incentive to everyone that works on the project instead of just the Superintendent. After all, it is the entire project team that makes the project a success. The PM and Super should get the biggest percentage followed by Foremen, Leadmen, and the rest of the employees that worked on the project. A good way to judge how much each employee receives is the amount of hours they put into the project. Divide the total project incentive by the total number of manhours charged to the project to give you incentive per hour, and give that out to each employee by the amount of hours each employee worked on that project.
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Posted by:jamie
on
18 months ago
Another good article to read regarding incentive programs is: This Bonus Sucks! http://www.constructionmonkey.com/collaboration/Post.aspx?ID=28
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Posted by:jamie
on
18 months ago
The percentage bonus should be determined by what makes sense for your company and your employees receiving the bonus. The company needs to make money, but you need to find an amount that actually motivates the employees to hit that mark. Unfortunately, I don't think there is a magic number across the board for all companies. Each company shows costs differently...some charge certain costs directly to the jobs, and some place in overhead that gets taken out of the gross margin. The most important thing with an incentive program, is to BE CONSISTENT, and follow through if you say you will pay out incentive. If you do not, you might as well not have an incentive program because employees will lose faith in the program.
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