Document Detail

Title: RS140-1 - Employee-Based Project Incentives
Publication Date: 6/1/1999
Product Type: Research Summary
Status: Supporting Product
Pages: 17
Describes what is effective and desirable for an employee-based incentive program for both hourly and salaried employees. Introduces IR140-2, Employee-Based Project Incentives Toolkit, that can aid in developing an incentive program.
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Employee incentives have increased in use as owners, contractors, and suppliers seek innovative approaches to create the optimum atmosphere for project success. One question, however, remains: Do employee-based project incentives result in an increased probability of achieving project objectives?

To answer that question, CII created the Project Incentives Research Team. The objectives of the research team were to:

  • Develop specific employee incentive performance benchmarks in terms of safety, quality, cost, and schedule.
  • Develop a methodology that the owner/contractor team can use to select and implement an employee incentive plan based on project type and project objectives.
  • Develop easy-to-use tools to assist the owner/contractor team in developing and implementing a successful incentive plan.

The majority of the companies interviewed stated that the results obtained either met or exceeded their expectations and that they would utilize incentive programs in the future. The research revealed that employee-based incentive programs assisted employees in focusing their efforts and in motivating their performance.

The research team has prepared a guide, Employee-Based Project Incentives Toolkit (CII Implementation Resource 140-2). The purpose of the toolkit is to help determine if a project is appropriate for using employee incentives, to assist in developing such a program, and to help manage the program to successful completion.

Do employee-based project incentives increase the probability for achieving project objectives? The answer is yes, provided that they are well-planned, clearly established, and properly supported by both owner and contractor management.