Employee Incentives For Accounting Firms
Keep your best people past busy season
Accounting firm with up to $50 million in revenue? Here’s how to set up an incentive plan that rewards utilization, client retention, and the accounting team that carries you through busy season.
Employee incentives make a huge difference in accounting
Accounting firms run on utilization and retention, and both depend on people who feel real ownership over the outcome.
A great incentive plan shares firm results with the accounting team that produced them, so your best people have a reason to stay past April.
Here’s what to consider when building your plan
At ShareWillow, we’ve helped professional service firms create incentive plans that reward the whole team, not just partners. Here are some tips to help you get started.
1.
Eligibility
Who should be a part of your plan?
Most companies only offer incentive plans to management. Individual employees tend to rotate in and out, while management will usually stay the same across projects.
2.
Calculations and payouts
How big should the payout be?
It’s best practice to choose your desired margin (usually around 15%), and only award a payout if you hit that threshold. You’ll have to determine what that payout looks like per employee (we can help, if you want it).
3.
Criteria and deductions
How do we keep track of performance?
Don’t make profit the only goal. Consider creating a scorecard that lets you track extra criteria (like attendance, safety checks, billable hours, and more).
1.
Eligibility
Who should be a part of your plan?
Most companies only offer incentive plans to management. Individual employees tend to rotate in and out, while management will usually stay the same across projects.
2.
Calculations and payouts
How big should the payout be?
It’s best practice to choose your desired margin (usually around 15%), and only award a payout if you hit that threshold. You’ll have to determine what that payout looks like per employee (we can help, if you want it).
3.
Criteria and deductions
How do we keep track of performance?
Don’t make profit the only goal. Consider creating a scorecard that lets you track extra criteria (like attendance, safety checks, billable hours, and more).
Let your team see the impact on the business
Motivate your team to act like owners, and show them how their work affects the business. When you connect rewards to behaviors, they’ll start looking for new ways to work smarter, harder, and safer.
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Attract and retain employees
Stand out in a competitive market, and keep your current team motivated.
Create cultural change
Build goals that encourage your team to look out for the business, and the people they work with.
Build goodwill
Show your hard-working team that you care, and keep them motivated on every project
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Get started with an incentive plan template for construction
We’ve taken years of experience and put together a template that’ll help you get started. Reach out today to get a personalized plan, and start using the template yourself.