Employee Incentives For Construction Companies
Motivate your team to grow your revenue for the long term
Construction company with up to $50 million in revenue? Here’s how to set up an incentive plan that keeps profit margins up, injury rates down, and jobs on schedule.
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Employee incentives make a huge difference in construction
You want your team to steer towards profitability, but don’t want them to cut corners that could lead to safety risks.
A great incentive plan can help you motivate your team to chase big financial goals and deliver a great customer experience, without encouraging risky behavior.
Here’s what to consider when building your plan
At ShareWillow, we’ve helped dozens of construction companies create incentive plans that motivate the team to complete jobs on time while maintaining margin goals. Here are some tips to help you get started.
1.
Eligibility
Who should be a part of your plan?
Most companies only offer incentive plans to management. Individual employees tend to rotate in and out, while management will usually stay the same across projects.
2.
Calculations and payouts
How big should the payout be?
It’s best practice to choose your desired margin (usually around 15%), and only award a payout if you hit that threshold. You’ll have to determine what that payout looks like per employee (we can help, if you want it).
3.
Criteria and deductions
How do we keep track of performance?
Don’t make profit the only goal. Consider creating a scorecard that lets you track extra criteria (like attendance, safety checks, billable hours, and more).
1.
Eligibility
Who should be a part of your plan?
Most companies only offer incentive plans to management. Individual employees tend to rotate in and out, while management will usually stay the same across projects.
2.
Calculations and payouts
How big should the payout be?
It’s best practice to choose your desired margin (usually around 15%), and only award a payout if you hit that threshold. You’ll have to determine what that payout looks like per employee (we can help, if you want it).
3.
Criteria and deductions
How do we keep track of performance?
Don’t make profit the only goal. Consider creating a scorecard that lets you track extra criteria (like attendance, safety checks, billable hours, and more).
Let your team see the impact on the business
Motivate your team to act like owners, and show them how their work affects the business. When you connect rewards to behaviors, they’ll start looking for new ways to work smarter, harder, and safer.
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Attract and retain employees
Stand out in a competitive market, and keep your current team motivated.
Create cultural change
Build goals that encourage your team to look out for the business, and the people they work with.
Build goodwill
Show your hard-working team that you care, and keep them motivated on every project
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Get started with an incentive plan template for construction
We’ve taken years of experience and put together a template that’ll help you get started. Reach out today to get a personalized plan, and start using the template yourself.