Bonus Structure/Plan

 
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Old 03-02-2009, 04:31 PM   #1
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Bonus Structure/Plan


I am looking for some feedback on what would be a good Bonus structure plan in the construction industry for a project manager. At this time there is not alot that i can do for the perfect Salary compensation and that is what brings this into a Bonus plan. I also dont have any benefits but am looking to contribute to their personal paid health insurance.I have met with a few potential canidates and have also asked them to come back to the table with something to see what they come up with. I am looking for a (fair) Win - Win situation for a long lasting employee.Not sure if a % on performance and responsibilities?, Based on total year?, based on per project? and do i make it a percentage that would bring their Salary up to where it would or should be satisfactory as if it was their yearly salary. Thank you
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Old 03-02-2009, 04:41 PM   #2
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Re: Bonus Structure/Plan


Go back in there keeping your eyes to the floor. If they offer you the job, hold their hand firmly and look into their eyes thank them for the job and mean it, drop your eyes back down to the floor leave the room quickly and quietly.

Now go out to the parking get in your truck, make sure the windows are up and call your wife and friends and let them know you found a job in this economy

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Old 03-02-2009, 04:51 PM   #3
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Re: Bonus Structure/Plan


yeah i think rbs is right.now is not the time to negotiate,

take what they give you or they will hire the next jo that walks in

or better yet stay home and let the wife work like me
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Old 03-02-2009, 08:08 PM   #4
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Re: Bonus Structure/Plan


I think the OP is the employer, looking for ideas to offer potential employee.
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Old 03-02-2009, 08:35 PM   #5
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Re: Bonus Structure/Plan


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I think the OP is the employer, looking for ideas to offer potential employee.
yep
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Old 03-02-2009, 08:39 PM   #6
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yep

Yep My bad
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Old 03-02-2009, 08:46 PM   #7
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Re: Bonus Structure/Plan


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Yep My bad
I wonder where he lives and what type of projects he needs managed.
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Old 03-02-2009, 08:48 PM   #8
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I wonder where he lives and what type of projects he needs managed.
150K and a hummer and I know where he can look
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Old 03-02-2009, 08:49 PM   #9
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Re: Bonus Structure/Plan


I'd do it for 145k and he doesn't have to blow me
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Old 03-02-2009, 08:51 PM   #10
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Re: Bonus Structure/Plan


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I'd do it for 145k and he doesn't have to blow me



He don't have too but that would sure start us off on the right foot
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Old 03-02-2009, 09:08 PM   #11
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Re: Bonus Structure/Plan


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Originally Posted by trebor368 View Post
I am looking for some feedback on what would be a good Bonus structure plan in the construction industry for a project manager. At this time there is not alot that i can do for the perfect Salary compensation and that is what brings this into a Bonus plan. I also don't have any benefits but am looking to contribute to their personal paid health insurance.I have met with a few potential candidates and have also asked them to come back to the table with something to see what they come up with. I am looking for a (fair) Win - Win situation for a long lasting employee.Not sure if a % on performance and responsibilities?, Based on total year?, based on per project? and do i make it a percentage that would bring their Salary up to where it would or should be satisfactory as if it was their yearly salary. Thank you
You may be in the driver's seat due to the economy, yet you are looking for a fair compensation plan. That's good. When you think about your goals, the job responsibilities and expectations, would it work to pay a base wage that is along the same lines as you might pay a person he/she supervises, then add a bonus based on a percentage of PROFIT? As an example, you might pay $800. per week for the base wage, then 10% of the profit shown on your company tax return. The bonus is not paid as a lump sum, but divided over the following 52 weeks. You can add a caveat that if he/she leaves you (verses being laid off or terminated), the bonus is forfeited. So, in the first year, the best he/she can do is $800 per week. If your company nets $150K in 2009, the weekly bonus paid next year is $15K divided by 52 weeks, or $288. for a weekly wage in 2010 of $1088.

Naturally, while earning the $1088 in 2010, he/she will be building a bonus for 2011. The percent of profit helps them keep your expenses under control, assuming they have control over good portion of overhead, labor, material, etc.

Works decent if you are making a profit, sucks for everyone if you are losing. Also, there needs to be some mutual trust that you keep track of any tax maneuvers you make to lower your tax rate and add that back in to the mix. Personal luxury vehicles, excessive travel, and the like have to be considered or you'll lose the trust. It's like having a partner, good because they watch your employees, annoying sometimes because they watch you.
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Old 03-02-2009, 09:13 PM   #12
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Re: Bonus Structure/Plan


I have just instituted a new compensation plan and so far it has worked beyond my wildest expectationS.

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Old 03-03-2009, 10:04 AM   #13
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Re: Bonus Structure/Plan


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Originally Posted by Bill Z View Post
You may be in the driver's seat due to the economy, yet you are looking for a fair compensation plan. That's good. When you think about your goals, the job responsibilities and expectations, would it work to pay a base wage that is along the same lines as you might pay a person he/she supervises, then add a bonus based on a percentage of PROFIT? As an example, you might pay $800. per week for the base wage, then 10% of the profit shown on your company tax return. The bonus is not paid as a lump sum, but divided over the following 52 weeks. You can add a caveat that if he/she leaves you (verses being laid off or terminated), the bonus is forfeited. So, in the first year, the best he/she can do is $800 per week. If your company nets $150K in 2009, the weekly bonus paid next year is $15K divided by 52 weeks, or $288. for a weekly wage in 2010 of $1088.

Naturally, while earning the $1088 in 2010, he/she will be building a bonus for 2011. The percent of profit helps them keep your expenses under control, assuming they have control over good portion of overhead, labor, material, etc.

Works decent if you are making a profit, sucks for everyone if you are losing. Also, there needs to be some mutual trust that you keep track of any tax maneuvers you make to lower your tax rate and add that back in to the mix. Personal luxury vehicles, excessive travel, and the like have to be considered or you'll lose the trust. It's like having a partner, good because they watch your employees, annoying sometimes because they watch you.

Thanks for the Serious reply........... glad to see someone on here has a head on their shoulders with some insite, compared to the others. It makes sense and sounds like a good plan and something to work with.

Thanks again.
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Old 03-03-2009, 11:42 AM   #14
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Re: Bonus Structure/Plan


Something to consider- a bonus should be just that- a bonus- not something to "bring their Salary up to where it would or should be". If a particular position should pay $50k/year, why should I work for you for $40k, and hope that you decide to give me a "bonus" to bring my salary to where it should be? IMO, if you can't afford to pay what the position should pay, you shouldn't be hiring a person to fill that spot- if you want a "long-term" employee, pay him what the position is worth, and then reward him with a bonus to keep him coming back.

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