Why Not Bonus Techs/Operations For Coming In Under Budget?

Why don't more integrators actually use the surplus margin in jobs to create an incentive program for their operations folks? This is something that is typically adjusted in the sales folks compensation when they don't have anything to do with the final bid (in my past, operations / engineering had to sign off on every bid to make sure that nothing was missed). If the job goes well, the sales person gets a higher commission, but if it goes wrong, they get less. To an installer, though, they get paid by the hour regardless, so more hours = more pay and more work.

Why not put a program together that requires operational sign off on every job, then any add'l profit that's earned from coming in under hours or what not is used for tech & engineering bonuses? That way, sales isn't benefitting more or less for an aspect of the job they're powerless over, and operations / technical staff have some skin in the game with the ability to earn bonuses?

Just my 2 cents...

NOTICE: This comment was moved from an existing discussion: Rant: You Need To Google It.... Please


I actually worked for a company that did this. Installers and service techs were given a territory just like sales people. It worked great. The salesperson and the installers/techs developed a relationship and worked together to get bonuses. The customers loved getting the same people all the time that new their system. The company was also toying with the idea of going to 10 hour days at 4 days per week. The union came in and shut everything down. They even had an issue with techs getting a bonus.

Oh....the unions....that's a whole different rant.

We did the 4/10. No Union and the bonus to tech. All worked fine until ultimately someone scammed the system of bonuses. Then that ended.

What was the basic scheme of the scam?

@Anthony Jones, @B: Was your bonus payout an well-defined or even automatic weekly payroll adjustment, or a quarterly one that managers distributed back to those who beat their numbers?

The premise of the bonus, which wasn't based on profitability but on quality of installation against budget got scammed when the people who were supposed to report system defects, poor workmanship, return calls chose not to so their friends could pocket some extra money. This didn't created the desired improvements so we moved on. Getting the job done quickly and on budget doesn't mean much if you spend money later fixing it.

I think company 'profit sharing' is a logical extension of this idea, right?

As much as I sympathize with the unsung uglies getting the work done, management sort of runs a dangerous precedent of incentivising people for a job they should be doing anyway.

I like this even better. That way, it's a team approach, so long as it's targeted specifically for the ops group (PM's, techs, etc.).