# Incentive Programs



## Mike1144 (Nov 7, 2006)

What kind of incentive program does your company offer, if any?

Ours is based on the number of projects our engineering team can submit. Each project is worth one point. There are quotas for each quarter, and depending which quota we make will determine our quarterly incentive. However, towards the end of year, its obvious there aren't enough projects left to submit and we won't make our quota for this quarter. It seems unfair that our quota is impacted because the sales team is falling behind.

I feel our engineering incentive should simply be a function of how quickly we turn projects around. Our sales manager feels our incentive should be based on the sales dollars. I feel engineering was sucsessful because we submit every project on time. The sales team wasn't sucsessful because they missed their sales budget. Therefore, engineering deserves a bonus, sales does not.

Agree? Disagree? Comments?


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## DVINNY (Nov 7, 2006)

1. I wish we had an incentive program, we don't

2. I totally agree that engineering incentives should be based on completing project on time, and within budget (once construction is complete, to avoid crappy designs pushed out the door)

3. Sales? you have a sales dept.? we do our own sales.


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## Road Guy (Nov 7, 2006)

Well For the first time in my life I was told at my review, that starting next year (its always next year dammit) I will get a bonus based on a percentage of my earned "net" revenue. In the past I had gotten bonuses for winning work, living in the office to meet a deadline, etc,

of course they didnt actually tell me what percentage............

but being a good PM i immedialtey closed down most all project tasks, to keep undesireable people from charging to my projects...


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## MetroRAFB (Nov 7, 2006)

I agree that your incentives shouldn't be tied to sales at all. I have a good incentives package where I'm at now, but I'm not in consulting so the comparison probably wouldn't mean much. Suffice it to say that my incentive is based completely on my performance, and the performance of people directly under my control. If I don't get a decent incentive, it's totally my fault, which is the way it should be. It's not your fault sales are down.

The job I had before this one had a fantastic incentives program on paper, based on percentage of net profit my projects made. The problem with that was that I didn't have direct control over everything that affected the profit on my jobs. I almost never got an incentive there, and when I did it was a joke. It's not a coincidence that I'm not with that company anymore.

I think incentives should be in existence to motivate your people to excel and produce. If you don't have any real monetary incentive to do more than you're supposed to, why would you? I just think it's good smart business practice to have realistic and attainable incentives for your workforce.


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## EdinNO (Nov 7, 2006)

I had a job where the owners did most of the selling. When they won a job, they would turn their entire, highly detailed estimate over to the engineering group. This was in control systems contracting.

If we beat the estimate by way of engineering time cost, labor cost, materials, etc.... there was some contribution to an incentive.

It was hard to get each group- installation, engineering, etc... onto the same sheet of music. If, in engineering we saved costs in our design time and in the materials, the install crew would sometimes not make the grade, etc...

Neat concept, but should have been individual deparment oriented.

Ed


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## singlespeed (Nov 8, 2006)

If I work hard, efficiently, and cost effectively, I get to keep my job :true:


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## MetroRAFB (Nov 8, 2006)

> If I work hard, efficiently, and cost effectively, I get to keep my job :true:


What if you work twice as hard as everybody else, and five times more efficiently and cost effectively in the same 8hr day as every other mope in your office? That should be worth more than your weekly paycheck.

B)


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## singlespeed (Nov 8, 2006)

Not here 

And this place is not much different than the other three companies that I have worked for over the past 20+ years. The folks who play the politics the best get the most :true:

And for what it's worth, I don't care... I live a simple life and enjoy it for the most part B)


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## MetroRAFB (Nov 8, 2006)

> And for what it's worth, I don't care... I live a simple life and enjoy it for the most part B)


Amen Brother, that's all that matters in this world.

As for the incentives, I'm smart enough to know that I've got it good in that department. I think if I was ever to have my own company I'd try to set up a good, fair, meaningful and attainable incentives program.


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## TouchDown (Nov 9, 2006)

My company 5 years ago made a portion of salaried employees salary to be "variable pay"... In other words, it was considered AT RISK. Your incentive to drive business was:

1. if you meet goals, you get full pay

2. if you EXCEED goals, you get paid better than you would have before

3. if you fall below goals, you get paid LESS

It's evaluated on a quarterly basis. I wouldn't consider it "incentives" unless you consider going to work to get paid your incentive (it is somewhat my reason for getting out of bed some days)... 

Now the company just announced that they are changing this program and it will be evaluated on an annual basis, and they are terming it a "bonus" instead of "variable pay" or profit sharing...

If they would have just went this way to begin, I wouldn't have much problem with it. But look at point 1 and 3 above. To get to your previous pay, you had to meet goals and you have some risk in losing some pay... NOW the company is going to HOLD your rightful pay for an entire year before they decide to give it to you. (oh, and if you exceed, you could make more)... But it's a whole freakin year before get paid!!!! Give me a break.

It's really a nice kick in the jimmie when that is announced the same week that a layoff is announced. And in the announcement, it said, this is active in the upcoming year, so plan ahead to cover this missing pay. WTF. :bad:


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## TouchDown (Nov 9, 2006)

PS - the portion gets larger the higher up you get in management. I'm at 10% right now. Others on the division level (who get paid in the 7 digit range) are near 50%. Interesting how they may have to do without 50% of their normal salary for an entire year before they give it to you.

If this were govenment, I think there would be people sharpening the :ruh: .


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## Ritchie503 (Nov 9, 2006)

We have no offical program so basically the company can do what they want. They pay bonuses if they want, if the company makes money, and the amount you get versus other is completely at their call. We have profit sharing instead of a 401k which is great when they pay into it, but some years they claim they don't have the money to put in it... At least with profit sharing its an equal precentage to everyone (of your wages with bonuses).

I know I can't complain as they have been very good to me last year, we will see what this year brings.


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## Kipper (Nov 10, 2006)

Our IP is based on targets set by management. Safety, budget, customer satisfaction, reliability (electric company), etc.

Two years ago it paid about 5-6% of yearly salary. Pretty nice bonus. This year it hit 10-11%. Everybody was happy.

Next year it will probably be back down to 5%, and everybody will be pissed.

I usually happy if I get anything over my salary. Heck I appreciate the $100 Wal-Mart gift card I used to get. I had kids in diapers then.

Wow, am I glad I don't have to do that anymore. 

But really I am spending more on them now, but they are worth it.


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## tmckeon_PE (Nov 13, 2006)

We can set up our own Engineering companies. Those in or near Central Florida, Please contact me at [email protected] to set up telephone or physical contacts.

If we have a PE, we can do it ourselves. Quit thinking like you have to rely on THE MAN (not God, mind you...just the money hungry...persons out there).


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## Guest (Nov 14, 2006)

I was offered an office with a window :true:

JR


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## EdinNO (Nov 14, 2006)

tdthomas,

You're still there after that? Better man than me.

Ed


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## Hill William (Nov 14, 2006)

My "bonus" consists of a check for fifty dollars per year of service that comes every year at the end of the fiscal year. This year, I got a whopping $250 (about 130 after taxes) :true:


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## Dleg (Nov 14, 2006)

jregieng:

That's awfully nice of them. I got to keep my window seat once, after we had just hired a new Masters of Public Health graduate, and he demanded that he be given my window desk because he had a Masters degree. He made this demand in front of the whole managerial/technical staff during a meeting, and fortunately our Director was as offended as the rest of us. :true:


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## Guest (Nov 14, 2006)

> jregieng:
> That's awfully nice of them.  I got to keep my window seat once, after we had just hired a new Masters of Public Health graduate, and he demanded that he be given my window desk because he had a Masters degree.  He made this demand in front of the whole managerial/technical staff during a meeting, and fortunately our Director was as offended as the rest of us.  :true:


My view as to getting a window office ----&gt; :?7?:

I have seen a number of people get pretty uppity about who should and should not have "priority" for window offices. It really is sad when the lowest common denominator for a status symbol is the location of your office 

I preferred to be closed up in my little closet of the world ..  That way I can troll the internet without interruptions in search of booty ... argh !!!!! ;hea51 :w00t:

:jk:

Regards,

JR


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## udpolo15 (Nov 15, 2006)

As much as I like to complain about it, my company's system isn't all that bad. At the end of the year each business unit gets a pool of bonus and raise money to distribute among the employees. The money is based on budget goals, revenue and profits. Money gets put in to an associate pools, manager pool and principal pool. Typically, if goals aren't met or profit is down, the managers and principals shift money down to the associate pool because the associates typically don't have any control over that stuff. Bonuses are typically 10% and I just moved up to the next level which means they will be around 15%.

Once you become a manager, the compensation shifts to a total comp analysis. I think they need to do this to everyone because I think it is a really fair way to do it. No comparing yourself to others. Even you make 20K less then another manager who is at the same performance level as you, will end up at the same total comp with means a large bonus for you. As you move up, they essentially prepay some of your bonus until you reach a level and then you go up to the next manager level and so on.


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## Fudgey (Nov 22, 2006)

If I pass, they may allow me to actually use the men's room again. I was banned after the unfortunate "mud monkey" incident.


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## Guest (Nov 22, 2006)

> If I pass, they may allow me to actually use the men's room again. I was banned after the unfortunate "mud monkey" incident.


Fudgie --

I was just thinking ... :blink: :jacked:

I can't use the term, "fecal matter hitting the rotary impeller" to characterize extraordinary events in your day since, by *design* , it is expected that fecal matter will hit your rotary impeller, regularly.

So what do you say to that kind of person ?? ;hea51

JR


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## Fudgey (Nov 22, 2006)

It's not actually a rotary impeller design.

More like a self-priming, fully submerisble, end suction model with a large solids handling capacity.

I tried to install a grinder on it once, but it got messy quick.


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