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8102 - Incentive Compensation Plan Best Practices

Incentive compensation is a huge investment. Engineering and construction companies spend an average 15 percent of net profit before taxes, on these programs. The U.S. construction industry has an enormous opportunity to improve the effectiveness of current incentive compensation programs, especially because few construction companies use industry market data to ensure adequate incentives. However, it can be challenging to create an incentive plan that supports your strategic objectives, motivates attainment of stretch goals, provides desired returns and behaviors and yields results. FMI set out to answer some basic questions to find out what makes incentive compensation more effective in the eyes of top executives in the construction industry. In this video-on-demand, FMI’s Mike Rose, Ph.D., shares results of this survey and discuss seven critical issues commonly practices in the construction industry.

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