It appears that no matter where you go these days, repair shops are looking to hire. However, shop owners also don’t want to lose the people they have now. And many of them are considering giving pay raises as a way to retain employees. This is not a bad idea, especially if your pay plans are outdated and not competitive with the current market. However, before you give out pay raises, there are things to consider.
First, have you done a complete review of your labor and part profit margins to support the raises? If you are not sure, consult your accountant or business coach. Increases in wages must be in line with what your company can afford. Adjustments to prices, labor rates, part margins, and production may be needed to finance those pay increases.
Another important thing to consider is why employees leave in the first place. While money is a factor, especially with high inflation, it’s not the main reason employees quit their jobs. Most people leave their jobs because they are unhappy with their boss or manager.
To sum up: before you give out pay raises, make sure your company can support the increase in payroll and, equally important, create a workplace environment that gives your employees reasons to stay.