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Bonus Incentive for employees

Construction:

  1. Take your field labour ratio from your profitable budget - For example, 25%.
  2. Add the wages for the foreman's typical crew - himself and 3 other guys. For example, $100,000 for the year.
  3. Divide the total forecasted wages that you just came up with to get your sales/production goal for that crew. For example, $100,000 / 25% = $400,000

You can then see what needs to be covered cost wise and anything over and above that price you can decide how much of that can go towards a bonus. For example, if you make anything over $400,000 then you can split that amount as a bonus for that crew.

Maintenance:

If the maintenance crew is working based on contracts with set prices then it is more difficult for them to make an added bonus.

One option is to set your foremen up with an enhancement list that they can apply to each job (customer). Tell the foreman, that the more enhancements that you complete, the more money they are going to make. Markup the enhancements by an extra 10% and for every enhancement that the foreman completes, he and his crew get that extra amount of money as an added bonus. 

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