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

All relationships start with a simple conversation. Let’s schedule some time to talk about your specific challenges and opportunities.


More from Courtney Stearns
Incentive Compensation for Contractors - Audience Question: Higher Base Compensation?
There is absolutely no perfect ratio between base vs. incentive compensation. Here are the variables and some rules of thumb.
Incentive Compensation for Contractors - Audience Question: Keep Why Top Of Mind?
Incentive programs can be as seemingly small and informal as a handshake from a manager for a job well done up to very large cash compensation.
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. These programs reinforce the daily actions and behaviors that make them successful.