Hiring & Firing Employees
Hiring new employee discussions, how to on-board new employees and where to find candidates. Firing employees is difficult. Terminations are often disruptive. Discussions about the need to terminate employees in your business.
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By Transmission Repair · Posted
Article date: Sept. 25, 2023 5:30 am ET This is a Wall Street Journal article that you can either read, or click on the "Listen to Article" near the top of the article. It takes 6 minutes. The authors of the article are suggesting the labor shortage is not a short-term issue; it's long-term. Reading/listening to the article will give you the "big picture" view of the problem. It's easy to think that the automotive aftermarket is one of the few industries that have a labor shortage, but it's not. It's all over. Read on... WSJ - Why America Has a Long-Term Labor Crisis, in Six Charts -
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By Joe Marconi · Posted
I agree with you 100%! -
By Joe Marconi · Posted
Great story, thanks for sharing. It is hard to believe that this stuff happens. And to your point, in some way of anther we all end of paying for this garbage. -
One of my guys when I owned a body shop did side work for cash doing roofing for a friend of his. I get a call on a Saturday from him in the hospital, he fell off the roof. Wanted to have me tell the workmans comp and insurance that he was working for me in the shop and tripped and fell. He broke bones in his neck, and was going to be out of work for a while. Are you kidding? No way, working for cash has drawbacks and this is just one of them. Some folks can get away with under the table, but when it crashes, it can hurt in more ways than one. -
By Transmission Repair · Posted
Natalie, early in my career I worked at an auto parts store. I would hang out with an older guy, Tom Sitka, of Sitka Transmissions to just watch and learn about transmissions. I wasn't concerned about learning anything other than the technical end of the business. As it turned out, he had some unpaid 941 taxes and the IRS got involved. The unpaid 941 taxes were a mere drop in the bucket when compared to all the 1099s he had the majority of his employees on. In the end, the IRS said he had "misclassified" the majority of his employees. Long story made short, the IRS padlocked his building and later confiscated all the tools and equipment in the building. From that point on, he was doing transmissions by himself at his house. I would help him just to learn but that didn't last as I found a job in a transmission shop. -
By Transmission Repair · Posted
Listen to this 17:39 conversation between Michael Moore (UAW supporter) and Kaitlan Collins of CNN about the United Auto Workers strike. Compare this conversation to our current tech shortage. I can draw many parallels. Michael Moore On The Importance of the UAW Strike -
By Transmission Repair · Posted
Young techs have it rough. Their earning power is less -PLUS- they need to make a major investment in tools and diagnostic equipment. Think about it; they need to spend the most when their earning power is the least. Many forget that most young techs are also saddled with the added expense of a growing young family with kids. In our market area of SLC, UT, a fair starting compensation package would be $25/hr. or $1K/wk. And that's just to start. This is 2023 and we have a tech shortage that's not going away on its' own. Providing a healthy work environment is relatively cheap to provide while company benefits are not. The first thing a shop needs to do is get top marketing and sales training. This will give a shop the tools and knowledge necessary to charge top dollar. We aren't going to solve the technician shortage and retention problems paying what we used to. Payroll needs to be no more than 20% of sales, not including benefits. Instead of working the problem from the front end, we need to work the problem from the back end by asking yourself this question: "What do we need to charge to make labor no less than 20% of sales?" Here's a partial view of our 2012 P&L statement showing our cost of labor was running 17.3%, so IT IS possible: 2012 P&L Redacted We need to start thinking like a tech thinks, not so much as a shop owner. -
By Joe Marconi · Posted
I don't know what's worse: the tech shortage, the lower than needed rate of young people becoming techs, or the fact that there are many technicians leaving our industry. I guess all three topics are serious issues, but techs leaving the industry has to move to the top, in my opinion. What can we do as Shop Owners to provide a healthy work environment and career that tells techs we care and we want you to stay?
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