Build a Bonus Program That Makes Your Team Want to Stay
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Design your bonus plan to be simple and directly tied to factors your technicians can control, such as gross project margin, efficiency, and material costs.
Clearly define penalties for undesirable behaviors (e.g., late arrivals, unlogged hours, unapproved extras) in the employment agreement so employees understand how to 'win' and 'lose'.
Implement a robust, automated tracking system (like Jobber or AirTable with Jotforms) for both positive performance metrics and penalties to ensure consistency and reduce administrative burden.
Conduct regular (e.g., monthly) Goal Setting and Review (GSR) meetings with each employee to discuss performance, provide coaching, address concerns, and foster connection beyond just financial incentives.
Budget for bonuses as a planned expense, integrating them into your annual financial planning to ensure they don't unexpectedly cut into profits.
Communicate the bonus plan from day one during hiring, including it in employment agreements to make it a transparent part of the compensation package and an incentive for retention.
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