Helping businesses like yours reach their full potential
Helping businesses like yours reach their full potential

Employee Incentive Compensation Plans

Morale was low. The staff was fatigued. One client was doing their best to remedy the situation by paying bonuses. The problem? No one really understood how the bonuses were being calculated and the owners had no idea if what they were doing was helping or hurting the company’s bottom line.

 

When providing a service, it’s important to accurately record time worked to appropriately bill a client and to determine a job's profitability. This organization’s utilization rates (percentage of time billed to a client) were well below the industry average, and the company’s financial health was suffering. From an employee perspective, the staff felt taken advantage of with long overtime hours.

 

SMC was brought in to interview the owners and the employees to understand both viewpoints. It was determined that an objective bonus or incentive compensation system, based upon items that the employees could control, was needed. This would lead to improved results for the company’s financial health as well as improved morale.

 

SMC assisted in putting the entire program together: developing key metrics and their related targets, identifying training needs to assist in generating results (better time entry), and developing monthly reporting for both owners and employees to understand monthly results.

 

Within the first 18 months, the billed hours percentage increased by over 35%, justifying larger bonuses to staff, and significantly improving the bottom line to the owners. A win-win for the entire organization.

"We have worked with SMC Consulting for nearly a decade and Sue’s work has been invaluable. Initially we were a young start up company that needed intense direction in our daily efforts. Sue was able to assist in helping us set up our QuickBooks files, chart of accounts, our bonus program and general employee management. She is a fantastic sounding board and also provides a unique perspective on any of our short and long range plans. As we grew, Sue was able to help us in different areas such as tax planning, cash flow management and employee retention. Overall, Sue has been a great support and has enhanced our bottom line tremendously."



- Soucie Horner, Ltd.

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To schedule an appointment, please call:


(312) 342-1648

 

Or send us an email at Inquire@TheSMCWay.net

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