Beyond Paychecks: How Incentives Transform HVACR Technician Retention

Ultimately, while bringing in new technicians remains a challenge, the key to long-term stability lies in retaining the ones already on board — through thoughtful, well-structured incentives that redefine what a lasting, rewarding career in the trades can look like. 

Why Incentives Matter 

Technician turnover isn’t just a challenge — it’s a costly, recurring one. It takes time and money to recruit, hire, and then train new technicians. Each lost team member comes at a price.  

Hence the growing pressure to not only attract talent, but keep it. That’s where incentive programs come in. From performance bonuses and profit sharing to team outings and office parties, contractors are learning that in order to retain talent, they have to reward them for more than just the hours they work.  

Cardinal Plumbing Heating & Air in Sterling, Virginia, offers a mix of structured incentives to not only reward great work, but keep things fun.  

“Technicians earn Sale Performance Incentive Funds (SPIFFs) for things like setting leads, selling membership plans, and participating in marketing activities like placing yard signs,” said Patrick Garner, service manager at Cardinal. “We also offer cash bonuses for getting five-star reviews, especially if they include a photo, and for referring other technicians to join our team.” 

Cardinal’s reasoning for adding these incentives in 2024: to place a bigger focus on technician engagement.  

“We wanted to reinforce behaviors that benefit the tech, the customer, and the company — without pressuring anyone to upsell,” said Garner. “When techs feel recognized and rewarded for doing things the right way, everyone wins.” 

Having consistency in the incentive programs offered helps technicians know exactly what’s expected, and what they can earn. 

“That said, we love to keep things fresh,” said Garner. “We’ll occasionally surprise the top-performing technician of the month with a bonus or do something special for the team. For example, when we were on pace to break our all-time review record, we promised a companywide barbecue if we hit it — and a bonus for the record-breaking review. We crushed it, and the celebration was a hit.” 

Quality Heating Cooling Plumbing & Electric in Tulsa, Oklahoma, offers a variety of culture-focused incentives including seasonal events like sports outings at the local baseball park for employees and their families, birthday PTO, performance bonuses, holiday parties, company outings, and Foodie Fridays, where lunch is brought in for employees Memorial Day through Labor Day.  

At Point Loma Electric, Plumbing, Heating & Air in San Diego, California, the team offers a range of incentive programs designed to motivate technicians and drive specific behaviors. One in particular is their refillable debit card system, where SPIFFs and special bonuses are paid out daily — giving technicians immediate access to their earnings rather than waiting for payday. This includes payouts for reviews, yard signs, and other performance-based actions. While the income is still taxed through regular payroll, the quick access to cash has made the program popular and effective. 

Another Point Loma incentive is the tool credit program. Technicians earn tool dollars throughout the incentive period, then place their orders at the end — with suppliers contributing tools and discounts. The company turns the distribution into a celebratory event. They’ve also recently introduced long-term financial incentives. All employees are eligible for profit-sharing — paid quarterly — after just 30 days on the job. Equity sharing begins after one year and follows a five-year vesting schedule. To manage these programs efficiently, the company uses the Reins platform, which provides expert guidance and a streamlined system for implementing and distributing shares. 

“Essentially, we reward the results we want to see. … It has a great impact on employee morale, and everyone is very excited, and we have seen a definite change in attitude,” said Jamie Hunley, CEO of Point Loma. “Our employee engagement is high, and our culture is very positive.”  

Incentive Impact 

While incentives can take many forms, the true measure of their success lies in how they influence technician loyalty, engagement, and morale.  

“We don’t track turnover rates with hard numbers, but we’ve definitely seen a strong response,” said Garner. “Our review count has jumped to an average of 130-160 reviews each month, and the number of yard signs being placed has grown several times over. Technicians regularly send in photos from jobs, and we now receive dozens of yard sign photos each month. That kind of engagement speaks volumes.” 

Since introducing incentives at Quality Heating, Pound said they’ve noticed a measurable impact on technician retention.  

“While we continue to track retention data, one of the strongest indicators comes from our annual Employee Engagement Survey,” said Cassie Pound, vice president at Quality Heating. “Every year since implementing these incentives, we have received consistently positive feedback from our team. In fact, the number of employees recognizing and appreciating these incentives has increased year over year, demonstrating growing engagement and satisfaction.” 

Even when hard retention data isn’t readily available, the clearest sign of incentive success is the noticeable shift in culture — something that plays a major role in keeping technicians engaged. 

“One of the biggest impacts has been on morale and team camaraderie,” said Garner. “Many of our techs are excited by the chance to boost their earnings through great service — not just sales. We have Teams channels where they share photos of yard signs and shout each other out for outstanding reviews. Management also recognizes their wins publicly, which adds to the energy. It’s become a fun and positive way to stay connected and motivated.” 

Which Incentives Work The Best 

There’s no single incentive that guarantees technician retention — instead, it’s a mix of rewards tailored to a company’s culture that truly drives engagement and loyalty. 

“We’ve found that it’s not one single incentive, but the combination of all our incentives working together — supported by our strong company culture — that makes the biggest impact,” said Pound. “Whether it’s bonuses, recognition, growth opportunities, or company culture events, these programs help our team feel valued and appreciated.” 

That said, when it comes to driving immediate engagement (and perhaps in the process sparking friendly competition), nothing grabs attention quite like incentives tied to cold, hard cash.  

“Cash is always a strong motivator — especially when it’s handed out at monthly meetings where everyone sees what’s possible,” said Garner. 

At Cardinal, techs earn $10 for a five-star review, $25 for a review with a photo, $25 for a yard sign, and $50 if they get a yard sign with a photo.  

“Seeing teammates earn those bonuses sparks friendly competition and encourages others to follow through,” said Garner. 

Challenges And Advice  

While incentive programs can boost company morale and retention, they aren’t without hurdles. From figuring out what to offer to ensuring consistent execution, contractors have learned that success takes planning, communication, and flexibility.  

“The biggest challenge is focus,” said Garner. “There are so many activities we’d love to incentivize, but offering too much at once can dilute the impact. We’ve had to streamline and focus on the behaviors that matter most. Building consistent processes has helped, too — like making sure technicians know exactly how to submit photos or track their SPIFFs.” 

Focus becomes even more important with growth.  

As incentive programs grow alongside the company, maintaining a personal touch and ensuring every team member feels individually valued is something contractors have to continually work hard to address. 

“As our team expands, it takes intentional effort to ensure that each employee feels seen, valued, and recognized not just as part of a group, but as an individual,” said Pound. “We are committed to overcoming this challenge by continuing to prioritize personal connection and consistent communication, no matter the size of our team.” 

To be this intentional means to not “set it and forget it” with incentives — explaining the why behind each incentive. How does it help the technician? How does it help the customer? The company?  

“Then keep it visible: print out reviews and post them on lockers, share wins in your team chat, or display them on dashboards around the office,” said Garner. “And don’t forget the fun. When incentives are simple, rewarding, and tied to real impact, they become something the whole team rallies behind.”