Integrator Profitability Bonuses - Statistics

By: IPVM Team, Published on Mar 13, 2019

While winning projects typically gets the most attention, how profitable those jobs turn out to be is key to the long-term success of integrators. In IPVM's ongoing profitability series, 100+ integrators told us how they reward their employees for maximizing profitability. Interesting, the plurality do nothing, as the chart below illustrates:

Integrator Bonuses For Profitability

However, the majority do provide some forms of profitability bonuses split between those who do it for the entire company's profits vs individual projects. Why do so many integrators provide no bonuses? And why do many more provide company wide than individual project bonuses?

Inside this note, we share dozens of integrator comments to show the key themes and challenges in rewarding profitability.

***** ******* ******** ********* gets *** **** *********, how ********** ***** **** turn *** ** ** is *** ** *** long-term ******* ** ***********. In ****'* ******* ************* series, ***+ *********** **** us *** **** ****** their ********* *** ********** profitability. ***********, *** ********* do *******, ** *** chart ***** ***********:

Integrator Bonuses For Profitability

*******, *** ******** ** provide **** ***** ** profitability ******* ***** ******* those *** ** ** for *** ****** *******'* profits ** ********** ********. Why ** ** **** integrators ******* ** *******? And *** ** **** more ******* ******* **** than ********** ******* *******?

****** **** ****, ** share ****** ** ********** comments ** **** *** key ****** *** ********** in ********* *************.

[***************]

Key ******

*** ********* *** ****** emerged **** *** ********:

  • *** ********* **** ****, many **** ** *** not ******, ******* * significant ****** **** **** were ***********, ** ** least ****, ** ********* bonuses
  • ***** **** ******* ******* tend ** ********* **** they ****** ******** ** think *** **** ** a ****
  • ******* ******** *********** ****** out *** ******* ** motivate *** ****** *********** costs ** ****.
  • *** **** ********* ** doing ******* ******* ** typically *** **** *** complexity ** ********* *** accurately ********* *** ** responsible *** **** *******.

****

***** *********** ********** **** bonuses **** *** *********:

  • "** ***'*. ** *** well, **** **** * good **** *** **** after *****."
  • "** **** **********. ******** understands ***** **** *** are **** ***********."
  • "****. * *** **** to **** ** ** timetable *** ******."
  • "*** ********."
  • "**** *** ** **** their ****. *** ******* does ******* ******* ******* based ** ** **********'* contributions"
  • "**** *** ** **** don't ******** ****** ***** I **** *** ******* the ***** ** **** will *** **** *** chance ** **** ** much."

***** ***** *** * less ********* ********** ** why **** ** *** have *******:

  • "****, ******** *****'* ****."
  • "****, *** ******* ***** i **** **** **** any *****."
  • "***** ** ** ********* or *******. **** ***'* believe ** **** ******."

****** ***** * ****** said **** **** **** and **** ******* ******* offering *******:

  • "** ** *** ********* have * ******* *** one ** ***** ***********."
  • "** ***'*. ** *** well ** ***** **** a **** ****** **** and *****'* **** * bonus ** *****. *** sure ** ** *** right *** ** ** it ******* ******."
  • "********* ***** *** ** direct ********** ** ******* provided. ** ** * topic ** **********."
  • "****. * ***** **'** working ** ****** ** with **** *********."
  • "****, *********, * **** on ****** *** **** in *** ******."
  • "** ***'*, *** ** should..."
  • "** **** ***** ****, but ** **** *********** will **** ** ***** and ********* *** *************, then ** *** ***** bonuses."
  • "********* ** ***’* ***** anything ** *********. *** company ** ********* ******* at *** ** ****** a **** ******** ** have ******* ***** ** project ***********."

***********

*** ***** ******** *******-**** bonuses, *** **** ****** reason *** ** ********* team ****, ** *** comments ***** **********:

  • "** ***** *** ** year ***** ***** ** profitability. ** ***** **** when ** *** **** as * **** ** Revenue *** *************."
  • "** **** * ********* bonus ***** ** *** net ****** *** *****. We **** * *******, but ******* ******* ** place *** *** ******* management ****. ** **** this ***** *** ***** look ** *** *******'* overall ********, *** *** each *** ** ******* to *******, ****** **** looking ** **** ** isolation."
  • "******* ******* *********** ******* in ******** ****** *******. This ***** ****** ** environment ***** ******** ** the ******* ***** ** see ** ******* *** just * ***** ** sales."
  • "****** ******* *** **** to ******* ************* *****, this ***** ******** *** team ** ******* ** they've *** **** '**** in *** ****'"
  • "***** ** * ****** for *** **** **** took ** ***** ** a **** *** **** a ******* ** *** management ** ******* *** goal *** ** **** case **** *** *********** prepared ** **** ***% for ******* *** ******* interest."

*** ********* ******** ** team-focused ******* ** **** even ** ********** ********* slack, **** ******* *** same *******. ** ******* worse, ********* *** **** extra **** ** ******* greater ***** *** *** same ***** ** ******.

***** *** ***** ********** explanations *** *******-**** *******:

  • "** **** **** * profit ***** *********** **** agreed ****** ******* *** achieved ** *** *** of ********* *******."
  • "******* ******* **** ***** if *** ******* ** an ****** ** ***** to ** *********** ***** all ** *** ********** of *** ****. **** sharing."
  • "** **** ****** ******* program *** ******** ** the ********* **** ** end ** *** ****."
  • "********* **** ** *** yearly ************ (***** ******** and ****** *****) ** partially ******** ** *** company ******* *** *******'* profit *****."
  • "** ******* * ***** at *** *** ** the **** ***** ** their ***********. ** ****** them ***** *** ***** performance *** ******* ************* of *** ******* ******* this *****."
  • "****** ******* ** *** end ** *** *******/ year. ** ********* **** "we're *** ******* ** we ******* *****"
  • "** **** * ***** bonus ******* **** ** a ***** ** ** are ********** **** *** owner ******* ** **** bonus *********."

*** ********** *** * more *********** **** ** giving *******:

********* *********** ******* *** extra **** ********. ******* you **** ** **** the ******** *****.

Per *******

* ******** **** ******* per *******, **** ******** emphasizing **** ** ********* controlling *****:

  • "********* ***** ** *** labor ******* **** **** after * *******."
  • "** **** ** ******* for *** **'* **** beat ***** *******. **** get * ***** *** of *** ******* **** realize."
  • "** **** * ***** structure ** **** ********* on **** *** ****** budget"
  • "** **** **** ******* to ******* ******** **** bring ** ******** **********, anything **** * ******* dollars ** ************* **** (we *** *** ******* of *** **** *** finished **** ********** ** the ** ** ** bonused *** *,***$ ** the ****** *******)."
  • "** *** **% ** any ******** ****** *** projects **** **** * minimum ******* *********."
  • "*** *********** ******* ** jobs **** **** ** or ***** *** ******** without ***** ******** ****** or **** *****."
  • "** ******* ******** ****** cash ********** ***** ** actual ***** ****** ** the *** ** *** project."

Problems / ******** **** *******

* *** ********* ** that ****** *** ********** awarding ******* *** ** costly *** ***********, ** some *********** ******:

  • "** **** **** *** notion ** ******** * bonus ** *********** ** projects *** **** *** sometimes *** ********* ***** taken."
  • "** *** ********, ******* are ********* **** *** freqently ******** *** ***** delivered - ** ** least *** ********* ** the ****** **** **** promised."
  • "** ** **** ** reward ******* ** * project ***** ***** *** other ************** ********* **** affect *************."
  • "**** ** * ***** company *** *** ************** burden ** ******** **** kind ** ** ********* program (***** *** ****** typical *********** *******, ***) is ****** *** ***** at *******."

** ******, *** ******** side ** **** *** giving ******* *** ********** certain ********* **** ***** their **** ** ******* costs. ** *** **** and ********** ** ***** bonuses **** **** *** potential **** **** ********* not ****** ******** ********* motivation? **** ** *** think?

Comments (7)

* *** ********* **** the ******* ***** **** is.anyone **** ** ***** base *** ***** ** terms ** $$ ** %? 

"**** *** ** **** don't ******** ****** ***** I **** *** ******* the ***** ** **** will *** **** *** chance ** **** ** much."

***** * ** ***-******* this ** *********, *** isn't **** **** ** also ******** ******** ** the ****? *** *****'* maintain ****** ***** ** he *****'* *** * sale, *** ******* **** your *******?

***.  **** ***** ***** responses *** **********.  ** a ********** ********** *** believes *** ******* ** an ********** *********** ******* project ******** *** ******* satisfaction ** ** ******-******, I ***** ******** **** against *********** **** ** attitude ** "**** *** to **** ***** ****", or "******* *** **** ** keep *** ******** *****".  

**'* ****** **** ** describe *** * **** about ********* **** **** without *** *** ** profanity.

**'* *** **** * "feeling" ***** ******.  *** of *** ***-******* *********** I **** ****** ***** well, **** ****, *** shares ****** ******* ******* with *** *** *****.  I've ***** ***** ** them ****** * ******, or ** ******** (****** those **** *** ** for *********** ******).  *** they **** ******** **** so **** ***** **** money "**** **** ****".  That's *** **'* ****, IMO.

**** *****/******* *** *** in?

* ***** **** *#*, some ** *** ******** about ********* *** *** a **** ****.  * wonder *** *** ******* ** at ***** *********? 

** *** ******* ** rolling *** ******* ***** on profitability *** ******** ************.  We *** ***** ******* out *** ******* *** overall *** ******* *** **** well ********. 

******* *** ***** **** you *** ****. * have ****** *** ********* that ******* ******* **** you **** ** ** say **** *** ******** a ***** *******. ******* are ********** *******, ******* is *** **** ***** I ******** **** ****** cash *** **** **........... 2001. *** ** ***** a ******.

****** ***** * ***** doesn't ****** **** ** be ***** ******. * have *** ******** **** me ***** **** *** after ********** * ******* under ****** *** *** date. **** *** ** often ***** *** **** than *****.

*** ********** *** * more *********** **** ** giving *******:

********* *********** ******* *** extra **** ********. ******* you **** ** **** the ******** *****.

****** **** * ***** place ** ****!

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