Tag Archives: construction compensation
Posted on September 2, 2016 by FMI CorporationIs it easy in your market to recruit and retain top estimators, project managers and superintendents? Have you been surprised by the recent turnover of a high-potential employee? If you’re dealing with these and other talent issues, it’s time to get your compensation and performance management systems in line with the new normal of higher competition for talent, worries about retention and experienced managers aging-out of the workforce. Here are five ways to get your compensation systems in order: 1) Establish a compensation philosophy and share it with your company. A compensation philosophy is the mix of base salary and bonus that a company offers versus what is available for a given title in the labor market. Many companies in the construction industry have never formally articulated a compensation philosophy, but even if they have not stated one, there is a “phantom” compensation philosophy that exists based on their historic practices. The trouble comes when actual practices do not match up with the company’s self-image, or when the company leadership believes they are following one philosophy, while the rank and file believes something much different. If you do not benchmark this and really know (rather than guess) what your compensation package looks like relative to your competitors’ packages, then your compensation philosophy will always be a guess and subject to drift.