February 15, 2008
Do incentive plans work?
By Terry Murphy CLP
Manager, human resource development
In 2008, I would like to investigate the subject of incentive plans and get you thinking about this very sensitive area. Whenever talking about incentives, you generally get people’s attention. Money, religion and politics are always popular subjects.
Last year I focused on professionalism and tried to not only describe the key ingredients, but also highlight the fact that we all have an opportunity to be more professional in the landscape industry. Professionals are paid more, professional companies are more profitable, and professionals will always weather the storm regardless of the challenge presented.
I think incentives and incentive plans can be an important element in running a successful business. But, let’s go back to square one. Companies are in business to make a profit. Profitable companies stay in business, which means working for a profitable company allows you to maintain a job. Conversely, unprofitable companies go out of business and you don’t have a job. Every employee’s mandate is to contribute to the profitability of the firm. The day you can’t do it, you don’t deserve a job with that firm. Having a job isn’t a right, it is a privilege. Your job is to make your company a profit, period. Showing up and being a warm body is no longer acceptable.
Can incentive plans be an important part of making your company more profitable? Some would argue yes, others no. Many feel that if they pay a reasonable wage, then employees are adequately compensated. The problem in our industry is that our pay scales are very low, compared to many trades. I suggest that if an incentive plan is motivational, it will improve profitability. If the plan improves or maintains productivity, or helps staff retention, it’s an important consideration for profit sustainability. Whether you have an incentive plan in place or not, I encourage you to read my monthly articles on incentive plans. Please write me or call me with your comments. I also hope to survey several industry firms to see what types of incentive plans are in place. I will share this information with readers of this column.
I will explore this area in the next several issues and make it a major topic of conversation. Ultimately, at the end of the day, all employers are searching for ways to improve their profit or grow their business. Can incentive plans help you do this? I hope that at the end of this series, you may be a better position to evaluate or look at incentive plans to see if they fit or don’t fit your business. If you have an incentive plan, then maybe it can be improved. If you don’t have one, perhaps you should have one!
Terry Murphy can be reached by e-mail at terry@landscapeontario.com.
Manager, human resource development
In 2008, I would like to investigate the subject of incentive plans and get you thinking about this very sensitive area. Whenever talking about incentives, you generally get people’s attention. Money, religion and politics are always popular subjects.Last year I focused on professionalism and tried to not only describe the key ingredients, but also highlight the fact that we all have an opportunity to be more professional in the landscape industry. Professionals are paid more, professional companies are more profitable, and professionals will always weather the storm regardless of the challenge presented.
I think incentives and incentive plans can be an important element in running a successful business. But, let’s go back to square one. Companies are in business to make a profit. Profitable companies stay in business, which means working for a profitable company allows you to maintain a job. Conversely, unprofitable companies go out of business and you don’t have a job. Every employee’s mandate is to contribute to the profitability of the firm. The day you can’t do it, you don’t deserve a job with that firm. Having a job isn’t a right, it is a privilege. Your job is to make your company a profit, period. Showing up and being a warm body is no longer acceptable.
Can incentive plans be an important part of making your company more profitable? Some would argue yes, others no. Many feel that if they pay a reasonable wage, then employees are adequately compensated. The problem in our industry is that our pay scales are very low, compared to many trades. I suggest that if an incentive plan is motivational, it will improve profitability. If the plan improves or maintains productivity, or helps staff retention, it’s an important consideration for profit sustainability. Whether you have an incentive plan in place or not, I encourage you to read my monthly articles on incentive plans. Please write me or call me with your comments. I also hope to survey several industry firms to see what types of incentive plans are in place. I will share this information with readers of this column.
I will explore this area in the next several issues and make it a major topic of conversation. Ultimately, at the end of the day, all employers are searching for ways to improve their profit or grow their business. Can incentive plans help you do this? I hope that at the end of this series, you may be a better position to evaluate or look at incentive plans to see if they fit or don’t fit your business. If you have an incentive plan, then maybe it can be improved. If you don’t have one, perhaps you should have one!
Terry Murphy can be reached by e-mail at terry@landscapeontario.com.