Need advice on how to replace current incentive/reward scheme for techs at IT Consultancy

Posted on 2013-06-14
Last Modified: 2013-06-23
I manage a small IT Consultancy in the Philippines. We offer a rang of IT services. We have an incentives/reward scheme for our help desk techs to reach targets and get rewarded for doing so.

Our current business model is a proactive and break-fix approach with ad-hoc jobs and projects performed as they come up which get itemized through tickets. The more tickets completed means the more hours are billed which means the more revenue for the company.

We encourage our techs to complete as many tickets and hours as possible because every hour is billable. The incentive scheme has worked fairly well because it encourages the techs to work hard and increase their hours and it also entices them to stay long-term, as it gives them a nice added bonus to their already competitive wage.

The current incentive model is quite basic and looks something like this:

target for a working business week. if a tech reaches this target an example of the bonus they will receive on top of their weekly wage is as follows...

- 30hrs = $50
- 35hrs = $100
- 40hrs = $150
- 45hrs = $200
- 50hrs = $250

Unfortunately we are having to change our business model mentioned above from a ad-hoc/project scenario of turning over as many tickets as we can and the more tickets we complete the more money we make, to managed services.

We have been forced to change to this new model from client pressure and a sign of the times to offer managed services to the majority of our clients. Under the new managed services agreement our clients will pay a fixed monthly fee which will cover the majority of their IT services and costs with the added bonus of SLA for them.

Under this new model, we will have to go the complete opposite of encouraging techs to complete tickets and the more tickets we complete the more revenue for the company.
This will no longer work. We want the least amount of tickets to be 'created' as possible because the fewer tickets means fewer problems. We will be receiving the revenue from the client regardless, so we want to have the ticket count as low as possible so we can use our time better elsewhere but we need to replace the above incentive/reward scheme because that will no long work under this new business model. We want whatever tickets/issues that arise to be completed in the time frame of the SLA so maybe that is something we can reward for.

I would like some suggestions on how to reward techs for the work they do based on this new managed services business model (the fewer the tickets the better and reaching SLA targets in the given time-frame). I am also open to any other suggestions you might have.
I'm not after opinions or suggestions on how to better use managed services and get the most out of your agreement. I only want suggestions on how we can reward techs going from - "the more tickets/hours you complete, the more money you make" to "the less issues that are present and those issues are completed within the SLA, the more money you make'"

I am open to any ideas or suggestions you have. I can also provide additional information if you require it and lastly, thank you for taking the time for reading my post!
Question by:CiaranDe
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LVL 17

Accepted Solution

Thibault St john Cholmondeley-ffeatherstonehaugh the 2nd earned 500 total points
ID: 39249657
It sounds like a ticket represents a negative. Can you pay a full monthly bonus if no tickets are raised and reduce the bonus by say 10% if a there is one ticket, and a further 10% for another in the same month. Peer pressure will keep everyone working as nobody will want to let the team down and lose them all money. Tickets must be fixed quickly or there will be further penalties. If any team achieves a month with no tickets then add an extra reward, time off perhaps, their quality of work should give room for half a day. Reset the count every month to give a chance of getting a clear month and consider an annual incentive for the best team.
LVL 17
ID: 39255136
Thanks for the accept, but I'm a bit dissapointed with the B grade. If there is something more that you needed you could have asked and I or someone else might have been able to supply what you needed.

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