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Employee Productivity help!


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We have a lot of work that needs to be done but our employees just take their time on jobs and realllllly stretch it out instead of working faster and getting the job done so they can move onto the next one. They are payed hourly and I think that is part of the problem. We do custom work and our jobs are usually pretty random so I cant pay them by the job. Any suggestions?

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We are in the same boat as you. There just isn't book time for example a 1965 AMC Marlin or an AC Cobra. As a result we developed a pay scale with incentives for our guys. They earn their hourly rate and a percentage/commission on the hours that are billed, not the hours they take to do the job. The owner gives the tech an idea of what it should take to finish the job based on the quote given to the customer. They earn a percentage of the labor rate per hour billed to the customer, when the customer pays for the hours - which means customer pays for hours when the job is done. The percentage is based on tech's skill level and length of time with us.

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The slowest employee needs to be the first one sent to the unemployment line. I pay hourly plus bonus, but I also work in the shop. I expect my guys to work as fast as me, if not they figure it out real quick that if I can do their job faster why should I bother paying them? Right now my top tech outworks me, he also makes a bigger paycheck than I pay myself. Slackers need to be sent packing asap, its hard but needs to be done.

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The owner gives the tech an idea of what it should take to finish the job based on the quote given to the customer. They earn a percentage of the labor rate per hour billed to the customer, when the customer pays for the hours - which means customer pays for hours when the job is done. The percentage is based on tech's skill level and length of time with us.

I really like this idea, and we've tried implementing an hourly + bonus, based on actual billed hours weekly. Can you give me an idea of how you structure the commission, or percentage basis? I really like that it;s based on skill/efficiency as well as time with your company. If you don't want to share publicly, I'd love to learn more about your process if you want ot message/email me.

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  • Have you checked out Joe's Latest Blog?

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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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