Incentive Programs for Superintendants
We have recently decided to introduce an incentive program for our superintendents in order to improve productivity and ensure that the schedule is met and customer satisfaction is attained. Here is a synopses of the program...
Bonuses are to be awarded and evaluated on a project by project basis. In order to qualify for a bonus the projectmust have a contract amount of $30,000 or greater and pass a profitability testof 25% or greater. If the project failsthe profitability test then no bonus is awarded. The bonus amount will be based and determinedon three areas of the project; profit, schedule, and customersatisfaction. The total possible bonusthat can be attained is x% of the profit, assuming all criteria in the threeareas (profit, schedule, customer satisfaction) are met. All three areas will be weighted differently.
The portion of the program that we are unsure of, and is the reason why we have not implemented the program, is the "x%" / percentage of profit that would be awarded if it was profitable. It needs to be enough to motivate the superintendent, but also fair for both parties involved.
What is a fair bonus percentage? Or a fair and motivating incentive program that has been proven to work?