Thanks for the opportunity to provide input- and excited to hear that
we will be re-designing the incentive plans for the field employees. I do
think the incentive plans today have a lot of qualifiers for them, and
streamlining them would be impactful. Additionally, target setting is
important.
Here's a potential example for consideration- sharing in thread for
visibility to the team.
*Key Metrics and Weighting for CSMs/CGMs:*
1. Monthly Revenue vs Target: 40%
2. Gross Margin vs Target: 20%
3. Starts of Care vs Target: 20%
4. Client Retention: 20% (Currently the SOC retention goal
negatively impacts operations if there are a higher volume of Tier 3
clients- would love for client retention to be based off of Tier 1/2
clients only)
*Key Metrics and Weighting for GMs/RMs/RDs*
1. Monthly Revenue vs Target: 40%
2. Gross Margin vs Target: 20%
3. Starts of Care vs Target: 15%
4. Client Retention: 15% (Currently the SOC retention goal
negatively impacts operations if there are a higher volume of Tier 3
clients coming on board... would love for client retention to be based off
of Tier 1/2 clients only, and think we should explore SOC retention vs the
full census of Tier 1/2 clients)
5. *Controllable *EBITDA : 10% (Targets should be realistic)
*GM's to continue being able to earn off of referral accounts, but I would
remove the "gating"
*Monthly Incentive TBD- (Level for CGM/CSM, Level for Supervisors, Level
for GM, Level for Regional Managers, Level for RDs)
*Total Performance and Payout structure:*
Below 85%: 0
85-89%: 85%
90-99% of goal: 90%
100-109% of goal: 100%
110% or more of goal: 110%
Monthly Incentive Payout Examples
Scenario Revenue Margin Starts Retention Weighted Payout % Payout ($1,000
Target example)
*1 – Strong Month* 110% 103% 108% 105% 110% × 0.4 + 100% × 0.2 + 100% × 0.2
+ 100% × 0.2 = 106% $1,060
*2 – Above Target Revenue, Others On Target* 115% 100% 100% 100% 110% × 0.4
+ 100% × 0.2 + 100% × 0.2 + 100% × 0.2 = 104% $1,040
*3 – Revenue On Target, Starts Low (Below 85%)* 100% 100% 80% 100% 100% ×
0.4 + 100% × 0.2 + 0 × 0.2 + 100% × 0.2 = 80% $800
*4 – Revenue Slightly Below, Margin Excellent* 88% 112% 92% 97% 85% × 0.4 +
110% × 0.2 + 90% × 0.2 + 90% × 0.2 = 93% $930
*5 – All Metrics Just Above Minimum (85–89%)* 87% 88% 86% 89% 85% × 0.4 +
85% × 0.2 + 85% × 0.2 + 85% × 0.2 = 85% $850
*6 – Below Minimum* 80% 82% 80% 80% 0 × 0.4 + 0 × 0.2 + 0 × 0.2 + 0 × 0.2 =
0% $0
*7 – Excellent Retention Month* 100% 100% 100% 112% 100% × 0.4 + 100% × 0.2
+ 100% × 0.2 + 110% × 0.2 = 104% $1,040
*8 – Mixed Performance* 108% 97% 105% 83% 100% × 0.4 + 90% × 0.2 + 100% ×
0.2 + 0 × 0.2 = 74% $740
On Wed, Nov 12, 2025 at 1:37 PM Chris Gerard <chris.gerard@thekey.com>
wrote:
> RDOs-
>
> We are looking to change the incentive plans for all field employees
> starting at the first of the year. I would like to give each of you an
> opportunity to participate in the design at the site level.
>
> For the CGMs and CSMs we are looking to design plans that:
>
> -Reward the right behaviors based on the role
> -Doesn't pit one role against another
> -Have a balanced emphasis on growth (SOCs) and quality (retention)
> -Are easy to track and report
> -Are equitable for both the company and the employees
>
> For GMs the plan needs to embody the plans of the CGMs and CSMs but also
> have a financial performance component.
>
> Would love to hear some ideas that you might have as we start to get into
> the new plan design.
>
> Please use this email thread to share thoughts and comments. The ELT is
> meeting next Wednesday to start getting this nailed down.
>
> --
> Kind Regards,
>
>
> *Chris Gerard*
> CEO | *TheKey*
> Mobile: 817-313-7913
> [image: TheKey] <https://homecareassistance.com/>
>
--
*Jessica Thomas *
Sr. Regional Director, Northern California| TheKey
Mobile: 925.639.9290
<http://www.thekey.com>