Delve into the intriguing world of incentives within the construction industry. Incentivizing employees and implementing performance-based pay structures is a topic that many construction businesses contemplate, yet struggle to execute successfully. What appears straightforward at first glance is, in reality, a multifaceted concept encompassing financial and psychological considerations. Our special guest, Adam Cooper, President of Ascent Consulting brings a wealth of expertise, having extensively written and consulted on incentive programs for construction firms.
Nailing It: Key Takeaways from the Podcast
- Incentive programs can be effective in motivating and rewarding employees.
- Before introducing incentives, companies should define the key behaviors they want to reinforce, establish measurement processes for performance evaluation, create a pool of money for incentives, and determine the method of distributing the incentives.
- Incentive programs that rely on objective and measurable key performance indicators (KPIs) work well, even for small to medium-sized construction companies. These programs promote teamwork, accountability, and a sense of being part of a unified team.
- Adopting a split approach with varying structures of incentive for other departments or groups of people is recommended.
- Incentivizing team behavior versus individual behavior can be a challenge. In cases where a team member’s poor performance disappoints a high performer, it is crucial to evaluate the specific contributions and adjust the incentives accordingly. A checkpoint can be established to ensure accurate measurement and fair rewards.
- A well-designed incentive program can also enhance the company’s reputation and attract talented individuals during the recruitment process.