As a Contractor, Architecture/Engineering firm, or any owner of a business, are you looking for that key ingredient to maximize your company’s success, profitability and operational efficiencies? That key ingredient is the company’s employees. Attracting and retaining employees whose skills, commitment and knowledge contribute to the success of the business should be a priority. While high-performing employees are typically driven by an intrinsic value to succeed, a performance-management system can motivate them to continue performing at peak levels.
Somerset has developed a unique tool to determine the appropriate amount of total profits to be allocated to a performance-based incentive plan. We can assist management with developing a performance-based incentive funding formula that considers both company-wide performance and individual employee contribution. Our tool takes into consideration not just total profit levels of the company but rather various profit pools that considers overall working capital and equity needs, shareholder return on investment, 401(k) and profit-sharing funding, employee performance compensation and potentially other pools such as deferred compensation, phantom stock plans, and other recognition and award programs.