Gross Profit
-
Have you checked out Joe's Latest Blog?
-
By Joe Marconi in Joe's BlogGot your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
-
-
Similar Topics
-
By Changing The Industry
Episode 156 - David Macholz on Rethinking Technician Certification and Training
-
By carmcapriotto
Thanks to our Partner, NAPA Auto Care Greg Buckley discusses the importance of using analytics and performance metrics in the automotive industry. He draws parallels between managing a sports team and running an auto repair shop, emphasizing the need for owners to understand their team's strengths and weaknesses. Greg explores the idea of incentivizing performance and accountability, similar to professional athletes. Greg shares his experience with nurturing technicians and the concept of having a "farm team" to develop skills. The conversation also touches on the need for better career pathing, training, and compensation methods to retain talent and improve the industry's professionalism. Greg Buckley, owner of Buckley’s Auto Care in Wilmington, and Millsboro DE. Greg’s previous episodes HERE. Show Notes
Introduction to the concept of scorecards (00:02:07) Greg introduces the concept of using scorecards and analytics to measure technician performance. Technician performance metrics (00:03:03) Discussion about technicians having access to their performance data and using it for career decisions. Contract-based employment (00:04:18) Exploring the idea of creating contracts and incentives based on performance metrics. Redefining technician compensation (00:05:20) Discussing the concept of incentives and redefining technician compensation based on performance. Building a career path (00:06:20) Exploring the idea of building a career path for technicians based on performance metrics. The role of analytics in decision-making (00:09:56) Drawing parallels between sports analytics and using analytics in the automotive industry. Training and certifications (00:11:58) Discussion about using shop management systems to track technician performance and productivity. Redefining technician levels (00:15:55) Proposing the idea of redefining technician levels and career pathing within the industry. Baseball analogies (00:16:38) Using baseball analogies to explain the concept of developing technicians through different levels. Understanding team strengths and weaknesses (00:18:16) Exploring the concept of knowing individual strengths and weaknesses to improve performance and success. Grooming technicians and creating career paths (00:19:09) The importance of grooming technicians and creating a career path for their growth and development. Enhancing compensation methods (00:25:05) Exploring the need for different methods of compensation to foster team growth and development. Agreement and rewards system (00:25:58) Discussing the concept of creating agreements and rewards systems based on performance metrics for technicians. Reflecting on baseball and strategic thinking (00:26:52) Reflecting on the strategic thinking involved in baseball and its relevance to business concepts.
Thanks to our Partner, NAPA Auto Care Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections
Click to go to the Podcast on Remarkable Results Radio
-
By Transmission Repair
Premium Member Content
This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.
-
By carmcapriotto
This week on Business by the Numbers, I want to talk shop and share insights that hit close to home for every garage owner out there. Today, I’m talking about an often overlooked aspect of your business - the true cost of inaction. Not just the dollars and cents you count every day, but the opportunities you might be missing out on.
• The Hidden Expenses: The not-so-obvious costs tied to decision-making in your shop. From choosing between internal work vs. retail work to the long-term effects of quick fixes
• Opportunity Cost Explained: Ever wondered about the cost of sitting on your couch instead of grabbing that $100 helping a buddy out? Opportunity Cost: It's all about what you're missing out on by choosing one option over another.
• Real-life Examples: From loaner cars to hiring decisions, I aim to illustrate how overlooking opportunity costs can have a tangible impact on your bottom line.
And hey, if you're hitting up Kansas City for Vision 2024, swing by and say hi. I'll be there, ready to chat and share insights in person. See you out there!
Thanks to our partners, NAPA TRACS and Promotive
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.com
It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: [email protected]
Get a copy of my Book: Download Here
Aftermarket Radio Network
Click to go to the Podcast on Remarkable Results Radio
-
By carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
In this podcast episode, Coach Chris Cotton from Auto Fix Auto Shop Coaching addresses the critical issue of technician shortages in the auto repair industry. He discusses how this shortage affects shop productivity and revenue, with shops struggling to keep up with the demand due to a lack of skilled technicians. Cotton cites a Tech Force Foundation report predicting a significant need for technicians by 2024. He explores reasons behind the shortage, such as retirements, low female representation, high turnover among young workers, and fewer automotive program graduates. Cotton concludes with strategies for attracting and retaining talent, including better work schedules, compensation, career development, and educaTechnician Productivity (00:01:11) Discussion on the impact of technician shortage on shop productivity and revenue.
Vehicles per Bay (00:02:33) Explanation of the increase in vehicles per bay and its impact on repair orders. Attracting Technicians (00:03:52) Importance of attracting and retaining technicians to maximize shop capacity and revenue. Technician Supply and Demand (00:05:52) Insights from the 2022 Tech Force Foundation report on the shortage of technicians and its impact on the industry. Impact of Technician Shortage (00:08:15) Calculation of revenue loss due to technician shortage and its impact on service capacity. Challenges in Attracting Technicians (00:11:43) Discussion on the reasons for the shortage of technicians and the challenges in attracting new talent to the industry. Remedies for Technician Shortage (00:16:34) Suggestions for addressing the barriers in attracting and retaining technicians, including training and career development. Technicians' Work Schedule (00:20:59) Discussion about adjusting technicians' work schedules to attract and retain them. Outdated Mindset (00:21:30) Encouragement to adapt to the changing times and make necessary adjustments in the auto repair industry. Acknowledgment of Listeners and Sponsor (00:22:20) Expressing gratitude to the listeners and acknowledging the sponsor, Shop Marketing Pros, for their support.
Connect with Chris:
[email protected]
Phone: 940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/
AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros
Click to go to the Podcast on Remarkable Results Radio
-
-
-
Our Sponsors
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now