In the construction industry, you are likely dealing with many different types of roles and positions, many of which will have different requirements in terms of working hours. For example, you may have someone working the standard nine-to-five in the office, while another is working overtime to help finish a time-sensitive project.
Different types of plans are also designed to help continually motivate your team to stay engaged and focused. For both of these reasons, it may make sense to consider a variety of different compensation plans for your team. This article will go over some of the best options to consider, depending on your unique work structure and company offerings.
Set Salary Compensation
This is the most straightforward option. A set salary compensation means that someone receives the same amount each month, regardless of the number of hours they work (i.e., no overtime). This option works best for individuals who truly value having the security of a standard paycheck over the year – even though sometimes they might be busier (or less busy) than others. Some employees may not like this option, especially if they are more competitive and are driven by performance incentives.
Salary with Commission/Extras
This could be an excellent option to offer if you want to have a set team on hand that you know you can rely on, but the work needed can sometimes be really variable. Essentially, you would offer someone a set salary (which would be lower than the option previously discussed) with the ability to supplement. There are several ways that a team member could earn something extra. For example, you could offer a bonus for finishing a project ahead of deadlines or offer overtime pay for those times when there are a lot of late nights and early mornings.
Hourly Compensation
This option is often used in the construction industry. However, suppose you want to retain top talent or ensure that someone will be loyal to your construction company and project. In that case, you might want to consider offering some of the “add-ons” included in the previous option. Here, you will pay employees an hourly rate for up to forty hours a week, after which you’ll need to pay overtime. Some construction workers really like this option, especially if they know that they will be swamped on an upcoming project and collecting “time and a half.” Others, who like more stability or flexibility in their schedules, may prefer another option.
It will be up to you to decide what makes the most sense for your team. Consider talking to your employees – their preferences may surprise you! After that, you will need to run the numbers to understand your company’s impact better.
