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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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  • 2 weeks later...

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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      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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