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.

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Contributors Sue Weiler-Doke David Brown

All programs will need to evolve, but frequent stops and starts to a program cause mistrust of leadership. All programs need to be developed with the end in mind.

What is it that the organization is trying to accomplish with this program? Is the program transparent and well communicated through the organization?

A rushed or short-sighted program may appear too top heavy or either too expansive or too narrow in members. Those that are not included may become disengaged and disruptive.

Incentive programs should have at least annual check ups to be sure that the program is still relevant to the organization. A part of this check up must include running scenarios over and over again to be sure the program is acting as an incentive for the behaviors that are really wanted.


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 11 of a 20-Part Series


Topics Covered in the Series Include:

  • Union vs Open
  • Mitigating the Talent Shortage
  • Prerequisites
  • Culture
  • 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. ...

Changes - Impacts Beyond the Direct Costs
Contractors don't typically see the full negative impact of changes and, therefore, don’t put the right level of resources into their management.
Incentive Compensation for Contractors - Who Benefits?
How would you rank the beneficiaries of a great incentive program, including Field Craft Workers, Service Technicians, the Project Management team, Executives / Owners, your customers, vendors, or others?
Time-on-Tools and Minimum Required Installation
Labor productivity IS NOT the biggest problem with project productivity. Under similar conditions the variation in how fast two crafts people actually “turn wrenches” is not that big. Focus on these three areas.