Integrator Profitability Bonuses - Statistics

By IPVM Team, Published Mar 13, 2019, 09:56am EDT

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.

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)

I was wondering what the average bonus size is.anyone care to share base and bonus in terms of $$ or %? 

Agree
Disagree
Informative
Unhelpful
Funny

"None but if they don't maintain profit goals I will not approve the quote so they will not have the chance to sell as much."

Maybe I am mis-reading this or something, but isn't that kind of also shooting yourself in the foot? Guy doesn't maintain profit goals so he doesn't get a sale, but neither does your company?

Agree
Disagree
Informative
Unhelpful
Funny

Wow.  Good thing these responses are anonymized.  As a specifying consultant who believes the culture of an integrator drastically affects project delivery and ongoing satisfaction to my client-Owners, I would actively work against integrators with an attitude of "they get to keep their jobs", or "Because you have to keep the peasants happy".  

It's really hard to describe how I feel about responses like this without the use of profanity.

It's not just a "feeling" thing either.  One of the low-voltage contractors I most admire hires well, pays well, and shares excess project profits with PMs and techs.  I've never heard of them losing a client, or an employee (except those they let go for performance issues).  And they keep overhead down so they still make money "hand over fist".  That's how it's done, IMO.

Agree: 4
Disagree
Informative
Unhelpful
Funny: 1

What state/country are you in?

Agree
Disagree
Informative
Unhelpful
Funny

I agree with U#2, some of the comments about employees are not a good sign.  I wonder how the culture is at these companies? 

We are looking to rolling out bonuses based on profitability AND customer satisfaction.  We are still working out the details but overall the concept had been well received. 

Agree: 2
Disagree
Informative
Unhelpful
Funny

Bonuses are great when you get them. I have worked for companies that promise bonuses when you hire on or say they are starting a bonus program. Bonuses are absolutely amazing, problem is the last bonus I received that actual cash was back in........... 2001. Had to think a minute.

Joking aside a bonus doesn't always need to be money either. I have had managers give me extra time off after completing a project under budget and due date. Time off is often worth way more than money.

Agree: 3
Disagree
Informative
Unhelpful
Funny

One integrator had a more pessimistic view on giving bonuses:

Quarterly performance bonuses and extra paid vacation. Because you have to keep the peasants happy.

Sounds like a great place to work!

Agree
Disagree
Informative
Unhelpful
Funny: 2
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