Bonuses
More than half the surveyed companies distributed a bonus in 2005. Of those companies, 63% distribute the money annually; 13%, semi-annually; 16%, quarterly; and 5%, on a monthly basis. Most company owners (81%) decide who receives a bonus and most (68%) decide how much.
For 15 years, Christine Ramaekers of Mainstreet Restorations & Remodeling has offered an annual bonus based on company profit and individual performance. “We feel that if we are profiting then our employees should be profiting,” Ramaekers says. The bonus is usually one week’s salary, and she makes it clear that it is not guaranteed. “We want them to strive for it, but it is not included in their salary package,” Ramaekers says, although she admits that a bonus is part of what it takes to find people to create a professional environment.
Three times per year, Jeb Breithaupt of JEB Design/Build distributes a performance bonus that can add up to a possible 8% of salary. The system is based mainly on profit, but Breithaupt also factors in things such as accurate paperwork, client satisfaction, and teamwork. Breithaupt used to pay the bonus annually, but he changed it so he could use the occasion as an opportunity to ask for and give feedback to employees throughout the year. “I think what employees want more is to feel they are included in the company’s visions and goals,” he says.
Instead of percent of salary, Karen Morse of Morse Construction distributes an equal amount to all employees. She feels that this prevents competition and builds teamwork. “If a job goes well and just one team or project manager gets a bonus, that does not acknowledge that everyone in the company is putting forth an effort and that everyone has a hand in our success,” Morse says.
Bonuses
Of companies that distribute bonuses:
51% are full-service remodeling companies
26% are design/build firms
24% have 10 or more full-time employees
14% have three full-time employees
16% have two full-time employees
26% have one part-time employee
37% have no part-time employees
19% have 10 or more field employees
16% have two field employees
37% have one office employee
Of the companies that do not offer bonuses:
46% are full-service remodeling companies
17% are design/build firms
14% have two full-time employees
26% have only one full-time employee
25% have one part-time employee
50% do not have part-time employees
33% have one office employee
33% have no office employees
22% have two field employees
17% have one field employee
17% have no field employees
Statistics do not total 100% because not all possible answers are shown.
Profit-Sharing
Of the 16% of companies that offer profit-sharing:
46% are full-service remodeling companies
26% are design/build firms
34% have 10 or more full-time employees
25% have 10 or more field employees
29% have one office employee
Of the 84% companies that don’t offer profit-sharing:
49% are full-service remodeling companies
21% are design/build firms
16% have two full-time employees
20% have two part-time employees
36% have one office employee