Incentives are more than just a benefit
Incentive methods don’t just cost money. Do you want a 30% savings in labor – per worker – every day? Studies show that construction field workers spend more than 60% of their work-time walking. If they’re enthusiastic, they’ll walk faster. If not, they’ll walk slower. A speedier pace could mean they’ll walk twice as fast, increasing their productivity, which will help you realize an astounding 30% savings in labor in a ten-hour day. That could typically add up to more than your entire labor markup to cover overhead and profits on most construction projects.
How can you achieve these levels of productivity returns? Try incentive compensation. Human beings have been programmed to compete to succeed since the beginning of time. Today, we compete in all sorts of situations such as business, sports, survival and even with ourselves if there is some type of reward in sight. It’s a basic tenet of human nature – and that’s why incentive compensation is so effective.
The use of targeted incentives can turn low-energy employees into high-energy drivers. Give your employees an incentive plan and you’ll reap multiple benefits. They will feel good about your company, appreciate that you are treating them right, will work harder and at their most productive levels to obtain incentives.
We haven’t even listed the added benefits of longevity and tax savings associated with employee incentives. In many cases the tax-savings alone will pay the cost of the plan. Yet despite the evidence few construction companies have taken advantage of the gains to be had from these incentives.
We at Druml Group are experts in creating tailored incentive compensation plans that are designed to produce excellent results. We know that each construction company is different, needing plans with specific, measurable and customized milestones that employees can understand and monitor.
Give us a call today. We’ll help establish your incentive plan and boost your labor productivity and longevity to levels that you didn’t know were possible. You may give a little more, and you may not, but either way you’ll get a lot more in return.