Incentive Compensation for Contractors - Introduction

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.

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Contributors Sue Weiler-Doke David Brown

These programs reinforce the daily actions and behaviors that make them successful.

These incentive programs are typically a mix of compensation and other benefits, and when you look deeply at them, they are also a mix of formal and informal. They are truly integrated into the culture and operating system of the company.

It is important to know that there is no such thing as a single best incentive program. There are absolutely guiding principles to consider, definite no-no’s, and many great ideas, but no prescriptive type solution.

Each contractor will have to develop their program based on where the business sits today and where their strategic plan has them heading.

While incentives are powerful, they will not create competencies or solve deep behavioral problems.

Incentives can be very effective when linked to measurement tools such as production tracking. Just keep in mind that measurement alone rarely tells the whole story.

Technology applied to a bad process will magnify the inefficiencies, and likewise, when you apply an incentive program to a bad plan or culture, it will only magnify the problems.


In this video series, Courtney Stearns, Sue Weiler-Doke, and David Brown discuss the most common questions we get from contractors about incentive programs, including a bunch of great questions from the audience.

This is Part 1 of a 20-Part Series


Topics Covered in the Series Include:

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

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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. ...

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