October 15, 2010
10% for Each 1000 hrs Client "Tenure Bonus": 8/1/2008
Effective today (August 1) we are piloting a bonus plan for tenured consultants (consultants who spend more than 1000 hrs at a particular client). This plan will take effect August 1 and will run through the end of the year.
The plan works like this:
Rules:
1. For each 1000 hours in billable bonus you attain at a client, you get a 10% kicker on your billable bonus payment.
2. The bonus is not retroactive, and will start showing up in August payroll.
3. Hours accumulation are retroactive to the start of QuickArrow (~January 2007), and QuickArrow is the sole source of billed hours.
Additional Rules:
1. The plan is for anyone with a billable bonus component in their compensation plan.
2. The plan will run through the end of the year, at which point it will be revisited for its effectiveness.
Fictitious Examples:
1. Sean Steimer has billed 1808 hours at Army McCann. Should we close a deal at the Army and should Sean go back to the account, he will obtain a 10% inflated billable bonus for his Army hours until he reaches 2000. At which point, each incremental hour will yield him 20% additional payment for his billable bonus.
2. Tyler Hill has billed 1935 hours at Nationwide/Western Heritage. Tyler will get a 10% bonus on his billable hours for his remaining 65 hours and a 20% increase in his billable bonus on his billable hours after he hits 2000 hours.
Results: The hope is that this incentive will:
1. Put a priority focus on helping to close additional work at a client you have previously worked at.
2. Put a priority focus on extending yourself at a client by finding more work proactively.
3. Provide an additional incentive for being a Consultant (meaning truly consulting with your client in an effort to develop a trusted advisor relationship with them so they both “want” and “need” you around).
4. Build deeper relationships at clients through tenure.
Questions I’ve gotten and my response:
1. Q: what happens if I get pulled off a client to go somewhere else where I have no tenure (thereby losing my tenure bonus benefit)?
· A: We want to build relationships at our clients and will seek continuity where we can. If you are being moved to another client because you are taking on a more senior role, we already have a compensation plan to benefit you from this (it’s called “Promotion” by way of improving your competency).
We hope that this helps to further direct attention towards our clients, our relationships with them, and their ultimate success. Thanks to Mark Kennedy for his creativity in coming up with this idea.
Have a great weekend!
Richard
The plan works like this:
Rules:
1. For each 1000 hours in billable bonus you attain at a client, you get a 10% kicker on your billable bonus payment.
2. The bonus is not retroactive, and will start showing up in August payroll.
3. Hours accumulation are retroactive to the start of QuickArrow (~January 2007), and QuickArrow is the sole source of billed hours.
Additional Rules:
1. The plan is for anyone with a billable bonus component in their compensation plan.
2. The plan will run through the end of the year, at which point it will be revisited for its effectiveness.
Fictitious Examples:
1. Sean Steimer has billed 1808 hours at Army McCann. Should we close a deal at the Army and should Sean go back to the account, he will obtain a 10% inflated billable bonus for his Army hours until he reaches 2000. At which point, each incremental hour will yield him 20% additional payment for his billable bonus.
2. Tyler Hill has billed 1935 hours at Nationwide/Western Heritage. Tyler will get a 10% bonus on his billable hours for his remaining 65 hours and a 20% increase in his billable bonus on his billable hours after he hits 2000 hours.
Results: The hope is that this incentive will:
1. Put a priority focus on helping to close additional work at a client you have previously worked at.
2. Put a priority focus on extending yourself at a client by finding more work proactively.
3. Provide an additional incentive for being a Consultant (meaning truly consulting with your client in an effort to develop a trusted advisor relationship with them so they both “want” and “need” you around).
4. Build deeper relationships at clients through tenure.
Questions I’ve gotten and my response:
1. Q: what happens if I get pulled off a client to go somewhere else where I have no tenure (thereby losing my tenure bonus benefit)?
· A: We want to build relationships at our clients and will seek continuity where we can. If you are being moved to another client because you are taking on a more senior role, we already have a compensation plan to benefit you from this (it’s called “Promotion” by way of improving your competency).
We hope that this helps to further direct attention towards our clients, our relationships with them, and their ultimate success. Thanks to Mark Kennedy for his creativity in coming up with this idea.
Have a great weekend!
Richard