Metrics and Employment Agreements Address Productivity Issues
Short of monitoring employees in the field, it can be difficult to know if they are working to the highest level of productivity. Contractors should consider employment agreements for their employees that spell out expectations and include performance metrics tied into bonuses. In the case of salespersons, it is somewhat easier to know how much of their time is productive as their compensation is directly tied into the number and dollar volume of jobs sold. The salesperson’s employment agreement should specify whether he or she earns a salary plus commission or commission only. Developing annual sales goals for the team is the best metric to evaluate productivity and whether each person is performing optimally. With multiple members on the sales team, it will be easy to identify underperformers and address the issue. It’s much harder to monitor productivity of other employees, such as installation crews, project managers, and field supervisors. This is where performance metr...