Setting Up a Bonus Structure in Painting Comp.

[Yanezez]

Hello all,

Our painting/construction company is now passing through another scary phase where we don't have the capacity to oversee projects and at the same time keep up with prospect meetings. It's a good issue to have as our projects are increasing.

We are thinking of hiring a person, who will function as a worker (painting, etc) but his main mission is to manage different projects we currently have. As of now, 2-3 but maybe 3-5 different projects soon. We are thinking of a good base salary (slightly higher than the normal worker) but also a bonus structure. The bonus would be linked to making sure that all projects are finished on time, with no quality issues.

Has anyone implemented any bonus structure that can be replicated for this kind of business? The projects are of various lengths and prices.

One option I thought of is to simply not have any project overdue in the corresponding month. So if we have three projects, two of them finishing in December and one in January, he would trigger the December bonus as long as those two due to close in December do not have any time or quality issues.

Any other ideas?

cheers and thank you

 

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[Lou7]

Hello all,

Our painting/construction company is now passing through another scary phase where we don't have the capacity to oversee projects and at the same time keep up with prospect meetings. It's a good issue to have as our projects are increasing.

We are thinking of hiring a person, who will function as a worker (painting, etc) but his main mission is to manage different projects we currently have. As of now, 2-3 but maybe 3-5 different projects soon. We are thinking of a good base salary (slightly higher than the normal worker) but also a bonus structure. The bonus would be linked to making sure that all projects are finished on time, with no quality issues.

Has anyone implemented any bonus structure that can be replicated for this kind of business? The projects are of various lengths and prices.

One option I thought of is to simply not have any project overdue in the corresponding month. So if we have three projects, two of them finishing in December and one in January, he would trigger the December bonus as long as those two due to close in December do not have any time or quality issues.

Any other ideas?

cheers and thank you

I have experience with sales and customer success bonus comp. Some thoughts:

• Incentives influence behaviour. Thus, if the incentive if not sell structured, people can behave pourly
• First of all , you said that this person would be a worker and oversee projects. Is it too much to handle? Productivity would be good in this case? No right or wrong answer, try to think about the consequences
• It does not have to be a monthly bonus. It could be quarterly to fit your context. Or even once every two months
• The incentive can be tied basically to lead or lag metrics (look for 4dx theory on chatgpt)
• Lag metrics: you can use client NPS at the end of the project together with finishing it on time. Question here: a good Nps with a delayed project is better than a bad Nps with a project on time? How does this work for you?
• lead metrics: the quality variables that you can measure throughout the completion of the project. What are the variables that have the most impact? You could also use CSAT here as well
• Ps: make it simple. Linear relations in my experience work better than exponential. People are simple