Compensation and Bonus Systems

  • Risk Quotient: Measure the Risk of Growth

    One measurement is what Les Cunningham of Business Networks calls the "risk quotient." "It's a lot easier to go upside down with a company that's too big than with a company that's small," says Cunningham.

     
  • Benchmark: Fair Compensation

    In the March 2001 issue, we set the benchmark for owner salary at 10% of gross revenue. Fortunately there are lots of other perfectly legal ways for company owners to compensate themselves.

     
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    Valuable Mistakes

    One exception is John DeCiantis, owner of DeCiantis Construction in Stonington, Conn. He figures that his company can learn and profit from the mistakes employees make. Each month DeCiantis pays $100 to the person on his field staff who made the biggest blooper. John DeCiantis gives $100 monthly to...

     
  • Union Battles Temp Agency

    The "Temporary Workers Deserve a Permanent Voice at Work" campaign waged by the Building and Construction Trades Department, AFL-CIO, since April 2000 has led to a host of legal battles in several states for Labor Ready, the country's largest employer of temporary workers in the construction...

     
  • Early Recovery

    An economic recovery may be coming earlier than expected. Ten indicators make up the Index: average weekly initial claims for unemployment insurance, interest rate spread, money supply, average weekly manufacturing hours, index of consumer expectations, building permits, stock prices, vendor...

     
  • Paying to win sales

    A few spend all their work time selling, while many more combine selling with estimating, designing, and production management. Compensation schemes vary, too -- salary, commission, staged commissions, salary plus profit sharing, among others. Another pays an extra 4% on total job revenue.

     
  • Organizing day laborers

    Community groups representing the interests of the approximately two million immigrant day laborers across the United States held their first national conference last July in Los Angeles, taking a significant step toward organizing a national advocacy voice for this oft-exploited class of...