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.

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Contributors Sue Weiler-Doke Courtney 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 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. ...

Our Approach
We take a very hands-on approach with our clients, providing a valuable third-party perspective, unbiased facilitation, and specialty expertise. We look at every aspect of your business to identify the biggest growth constraints and eliminate them.
Profitability Trends
When you are looking at your scoreboard, remember that industry average benchmarks and single points in time only tell part of the story.
Incentive Compensation for Contractors - Risks
The highest risk with any incentive program is the lack of a well thought out and systematic approach to either administering or implementing the program.