Quantcast
Jump to content


Joe Marconi

Will Minimum Wage Hikes Affect Auto Repair Shop’s Technician’s Pay?

Recommended Posts

There is been a lot of discussion lately across this nation about raising the minimum wage. I am not going to debate that issue today, but I will go on the record that I believe it may affect our industry and how we pay out technicians.

 

With companies such as Wall Mart, McDonalds, Starbucks, Chipotles, and many more increasing wages, this will send a message to the workforce that wages need to be more in line with the needs of the worker.

 

Pay scales for techs are all over the map depending on where you are in the country. But, the age old issue is that we need to attract quality entry-level people to our industry. With chatter that entry-level positions in the fast food chains and other big box stores may exceed $10.00 per hour and even reach $15.00, we need to take a look at what we pay our people.

 

The bottom line here is truly the “bottom line”. Shop owners cannot simply raise wages unless the shop’s profits are enough to support the raise. Shop owners need to take a long hard look at their pay plans and ensure that you offer competitive wages, but importantly, offer a work environment and career paths that will attract quality people.

 

Your thoughts?

 

 

Share this post


Link to post
Share on other sites


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 account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Similar Forum Topics

    • Today is Pearl Harbor Day- Let us all remember

      National Pearl Harbor Remembrance Day, which is annually on December 7, commemorates the Japanese attack on Pearl Harbor, in Hawaii. Many American service men and women lost their lives or were injured on December 7, 1941. National Pearl Harbor Remembrance Day is also referred to as Pearl Harbor Remembrance Day or Pearl Harbor Day.

      By Joe Marconi, in AutoShopOwner Announcements

      • 1 reply
      • 42 views
    • BOLT ON TECHNOLOGY and Elite Partnering to Elevate Industry

      Elite is proud to announce that we are partnering with BOLT ON TECHNOLOGY to help auto repair shop owners become more successful. When choosing to partner with a company we always take a careful look at their principles, at their ability to help shop owners, and at the impact they're having on the industry. BOLT ON has been able to exceed our most optimistic expectations in all of these categories, so it's truly an honor to be able to partner with them. BOLT ON and Elite will elevate the auto repair industry by making it more sophisticated, attractive to a new generation of shop owners, perpetuating ethics-based business practices, and overall creating better opportunities for success. The valuable technology and education provided by the companies will give shop owners the critical tools needed to improve car counts, AROs and customer trust.  BOLT ON provides an award-winning suite of shop management products that makes shops more attractive to prospective employees and customers. Each tool helps shops operate efficiently by streamlining scheduling and updating customer information, producing more accurate reporting, strengthening customer communication through digital inspection capabilities and allowing managers to stay on top of business performance. Elite provides shop owners premium training in business practices such as recruiting courses, marketing courses, phone skills and sales training, peer group meetings and comprehensive coaching programs where every Elite coach is the past or present owner of a very successful auto repair business. “We’re proud of our partnership with BOLT ON TECHNOLOGY because of all the synergy between the two companies both in our cultures and overall goals,” says Bob Cooper, founder and President of Elite. “Our belief is that every shop owner needs both the right people and the right systems to reach their potential, and this partnership helps them achieve both objectives.” “The key to fulfilling our mission is making every resource available to our customers that will improve their business,” says Mike Risich, founder and CEO of BOLT ON TECHNOLOGY. “We’re extremely excited about our partnership with Elite because the best solution for a shop that wants to grow is not just to train management or implement new technology, but to utilize both.” About BOLT ON TECHNOLOGY 

      BOLT ON TECHNOLOGY equips the automotive repair and maintenance aftermarket with award-winning technology tools to improve customer communication. The company's technology instantly transmits photos, videos and text messages to communicate automotive repair details, thereby increasing customer trust, boosting sales and empowering shops to build long-term customer relationships. Along with ongoing training and support, BOLT ON's mobile and digital tools also reduce problems inherent in the service process, while increasing shop productivity, revenue, and customer satisfaction. For more information, visit www.boltontechnology.com or call 610-400-1019. About Elite Elite was founded in 1990 with two primary goals in mind: To help shop owners build more profitable, successful businesses, and to give back to an industry we love. Elite’s services help shops identify business challenges, and improve in the areas of sales, marketing, employee management, recruiting and all facets of shop management so that they may reach their full potential. Elite hires only coaches and trainers with extraordinary track records of success, who share these goals and have the same passion for making this industry a better place by improving the lives of shop owners, their employees, their customers and their communities. For more information, visit www.eliteworldwide.com or call 1-800-204-3548.

      By Elite Worldwide Inc., in General Automotive Discussion

      • 0 replies
      • 161 views
    • The Road to Great Technicians Webinar With CARQUEST’s Chris Chesney

      On June 20, the Automotive Service Association (ASA) hosted a webinar called “The Road to Great Technicians” with Chris Chesney, senior director of customer training for the CARQUEST Technical Institute.  Written by Chasidy Rae Sisk * Attendees qualified for one credit from the Automotive Management Institute.  After ASA Vice President Tony Molla introduced the webinar’s presenter, Chesney recounted his collaboration with the National Automotive Service Task Force (NASTF) to identify the Road to Great Technicians. They began in March 2016 when NASTF’s Spring General Meeting focused on the topic of building a road to great technicians. Chesney was asked to explain the current state of the aftermarket training industry. He defined the current state of aftermarket training as a lack of industry standards and a structured career path, unorganized training offerings, and disjointed efforts by industry organizations. However, he also identified many good building elements. Current problems in the industry include the inability to find new talent, graduates not performing to industry standards, an inability to afford techs and the amount of time is takes to replace a technician or advisor who leaves a company because companies do not build bench strength. Chesney stressed, “You have to invest in those new technicians, but many shops cannot find someone who can perform out of the gate, so we need to focus on growing our own and building our bench strength to overcome this problem. We have a need now for the next several years. Reports indicate that we need 80,000 technicians each year, but only 25,000 are being produced.” Chesney identified the aging workforce, oncoming tidal wave of technology and lack of a structured career path as reasons for the significant needs for technicians. Focusing on the influx of technology, he explored the unseemly amount of data that is transferred within modern vehicles. “It’s not the problem of education,” he said. “It’s our problem, and we’re going to look into that.” Chesney presented a picture of the Technician Life Cycle, which included the following seven steps: secondary shadowing, post-secondary intern, entry-level apprentice, technician, senior technician, master technician and specialist; however, he noted that this does not include possible “off ramps” on the Road to Great Technicians. Occurring after an industry professional becomes an entry-level technician, these “off ramps” include in-service continuing education and higher education, which can offer technicians a variety of paths to pursue in their careers, ranging from master technician to shop foreman to shop owner or even becoming an engineer for an OEM.  In a January 2018 meeting, the education team at NASTF identified a subcommittee of industry experts tasked with creating a framework of education around the life cycle of a technician and other job roles within the industry. This framework is intended for curriculum providers to use in order to offer a career pathway that means something to the industry and is transferrable throughout the industry. The group began with the vision that they would prescribe degrees of competencies at every skill level, focused on the safety and reliability of the ground vehicle fleet. This Road to Great Technicians team consists of NASTF Chair Mark Saxonberg, Toyota’s Jill Saunders, WTI’s Rob Morrell, CTI’s Chris Chesney, NACAT’s Bill Haas, of Diag.net’s Scott Brown, WTI’s Mark Warren, NASTF’s Donny Seyfer, ASE’s Trish Serratore, S/P2’s Kyle Holt, DrewTech’s Bob Augustineand Cengage’s Erin Brennan. Exploring possible solutions to the industry’s problem, this group defined 13 solution elements, starting with new and enhanced communication with parents and influencers of peripheral students, early engagement with tactile students in middle and high school, support of STEM and development of a well-articulated career path with clear opportunities for advancement and growth that students and parents can see. The industry also needs to get involved with vocational education content to ensure these programs provide the right skills to students.  Chesney explained, “They’re producing the wrong technicians because we aren’t involved. We have to be involved. We need to design a curriculum for schools and employers to ensure that, regardless of where technicians work, they are uniformly trained for the skill level. We have to provide people with the opportunity to grow throughout their careers.”  The team also believes that the industry needs to provide internship experience, develop programs to help in-service technicians become mentors, and ensure that testing and certification programs are uniform and tiered to provide milestones for achievement. Employers also must find ways to provide wages and benefits that are competitive with other industries attracting the same individuals.  “As technicians progress through their career, it is imperative to communicate career options to ensure they don’t leave the industry,” Chesney elaborated. “Vehicle technology has accelerated to unprecedented levels, necessitating faster and more thorough technician skill development to ensure public safety. To add further credibility and value to the process, NASTF is encouraging practical examinations similar to other safety-related skills as a means to verify requisite skill level attainment. Currently, this is not regulated and we cannot keep up with the advancing rates of technology, but we need a way to prove our skills and be prepared for what’s coming, not merely what is on the road right now.” The current state of industry education is outcome-based and not sufficient to serve today’s technology. The future of education must be competency-based with a focus on mastery of skill and validation of a technician’s mastery and development of skills that are recognized and transferable. A competency-based education offers a variable class structure and the ability to test out of the subject matter at different levels, enabling students to finish as they are able. The Road to Great Technicians team defined a new NASTF Technician Life Cycle that includes seven steps: apprentice technician, maintenance technician, service technician, repair technician, diagnostic technician, master technician, and specialist technician.  According to Chesney, “Each step would require a variety of requirements as far as training and experience. They would also require mastery of competencies using curriculum provided by the industry, to include mentoring, demonstrated skills and self-paced curriculum. Finally, technicians seeking to advance would prove their skills through oral and hands-on exams.” Continuing the work they have started, the team plans to provide the industry with a white paper by the end of the year, but they encourage the industry to comment and opine. While the team will be limited in size in order to maximize effectiveness, they encourage industry professionals to join NASTF and the NASTF Education Team.  The group’s vision for the future of automotive education culminates in the idea of the Automotive Institute of Science and Technology, which would include a pathway education in a project-based environment. In ninth and 10th grades, students would sample each pathway through projects designed to highlight the different aspects and career fields before choosing a specific pathway in 11th grade to focus on in their final two years of high school. Their choices would be automotive technology as a trade, business, or engineering. While obtaining their associates degree, students would enter the discipline of their choice, working in shops to gain practical experience while simultaneously acting as mentors to younger students. Chesney concluded the webinar with a question and answer session. Article Source: https://www.autobodynews.com/index.php/component/k2/item/15820-asa-hosts-road-to-great-technicians-webinar-with-carquest-s-chris-chesney.html

      By Alex, in Human Resources, Payroll and Training

        
      • 1 reply
      • 280 views
    • 2017 GM 3.6 oil filter issue causing internal engine damage

      The following are posts I made on the AOCA website outlining an issue(potential nightmare) we had on 2017 Chevrolet Colorado:   Randy_Lucyk
      Joined: Dec 21, 2011
      Total Posts: 83  Feb 8, 2018 3:03 PM Unfortunately, I believe this is exactly what this may turn into for shops and consumers. We recently had a report of an oil filter failure on a 2017 Chevrolet Colorado with 13304 miles on the truck and the issue occurred 400 miles after our oil change. Customer had a check engine light come on so he headed right off to the dealer to have it checked under warranty. It had a VVT code stored and the dealer started looking into the issue. They found the filter failure and sent a picture of the image off to the customer. We used a Performax P0171 filter. The customer sent me the attached image of the obviously failed filter. I am immediately highly concerned, but the dealer is being unusually understanding of the failure. We spend some time with the service manager and find out that their appears to be an issue starting to show up on these vehicles, where the stand pipe in the filter housing is coming off with the old filter and being disposed of without the techs knowledge. We had great video of the oil change and their was nothing visible with the old filter as it was removed. The premises is that without the standpipes restricting/diverting functionality in place, full oil flow is blowing out the filter and the everything flows right down the filter housing port into the cylinder heads and remainder of the motor and plugs up components and passages. We asked for a picture of the filter housing and received image 2 attached. This appears that it may be a problem starting in 17 model year, but i can't be sure of that yet. I am digging for additional info now and will update as more information becomes available.  Randy_Lucyk
      Joined: Dec 21, 2011
      Total Posts: 83  Feb 9, 2018 7:59 AM This appears to be both a GM issue and a in-shop issue. 

      Now that I see the notification GM released last week, i believe this issue occurred at the original oil change prior to the one we did. As I said, we had great video of the open end of the old filter as we removed it from the vehicle and I don't believe this stand pipe could have possibly been inside. Their is also no evidence of the tech struggling with anything "down in there" other then the normal A/C line interference issue. . 

      Looking at the design and the A/C line interference, I suspect that the stand pipe is being knocked loose as the filter is being "angled" around the A/C lines to get the old one out. I suspect the oring on the stand pipe is the only thing holding it in the oil filter housing. Once the standpipe is disposed of, the housing has to be replaced, as the stand pipe is not available separately. The housings are in short supply with only three left in the country on dealers shelves and none in Gm distribution centers. Their is a new part number for the housing and those are not available yet. Original pt# 12675707 and new pt# 12682014. 

      Looking at the attached illustrations and notice, it would not be easy to completely miss the fact that a problem was evident. The stand pipe looks too big to me to be easily missed. I suspect it is plastic and the words "housing cracked" was mentioned in the conversation with the service manager. I wonder if the stand pipe is actually cracking during removal of the filter, making it difficult/impossible to reinstall. If we did not do it, then why the old filter had not failed yet ours did, comes into question. Cold weather "full oil flow" was also mentioned in the conversation with the service manager, and those were the conditions at the time of the failure. 

      The images also create some questions for me. The new housing does not appear to be identical to the OE installed housing, so is it an already redesigned housing? The filter bulletin in the Napa/Wix box talks about an update to the filter to include a check valve in the top of the filter. Our old filter does not appear to have this check valve, the Napa/Wix does and our new stock P0171 filters also have it. Looking at the design of the stand pipe in the new housing, it would almost appear that the small nipple on the end of the stand pipe might make more sense if it fit into the open hole of the old filter. The stand pipe design almost seems wrong for the filter with the check valve, unless it is shorter than it looks and never reaches the upper end of the filter. Would be great if the next shop to have one of these off would post some additional pics to try and help reduce confusion. 

      Based on the notice from Gm, this does indeed look like it could get ugly. Although, this dealer covered all the extensive engine repairs under warranty(heads pulled, all new timing components, cleaning passages), i am not convinced all dealers will take that approach. In my case, it was nice(incredible?) to see GM step up and take responsibility. It helped that my customer (owner of the Colorado) retired from a GM primary supplier dealing with issues exactly like this for the later half of his career. He knew the right people to call to get the info needed to drill down to the root cause. 


      Randy Lucyk 
      Midas Kalkaska

      By rpllib, in Technician Corner - Discussions

      • 0 replies
      • 681 views
    • REGISTRATION OPEN - The Official 2018 State of The Auto Repair Industry Report

      The Official 2018 State of The Auto Repair Industry
      The Untold Secrets of How my Underground Group of Car Count Hackers Instantly Fixed Their Car Count, Easily Send Money Making Promotions Immediately and Always Get Raving Reviews from Customers!

      By JustTheBest, in Marketing, Advertising, & Promoting

        
      • 0 replies
      • 362 views
  • AutoShopOwner Sponsors

  • Similar Tagged Content

    • By Joe Marconi
      Not every shop pays flat rat; for many reasons.  So, many techs are on hourly pay.  There is nothing wrong with hourly pay, as long as you have an incentive program in place that promotes high production levels to avoid complacency.  For hourly paid employees I strongly urge you to have a pay plan that rewards production levels on a sliding scale.  
      As a business coach, I have seen too many times shops with low production levels and high tech payroll due to overtime pay. Overtime pay must not be used to get the jobs done with no regard to labor production.  Limit overtime and create a strategy that increases production and rewards techs with production bonuses.  By the way, there are many ways to incentivize techs, it's not all about money. 
      Overtime without high levels of production will eat into profits and if not controlled, with kill your business. 
      If your shop is an hourly paid shop, what incentives do you have in place to maintain production levels? 
    • By Joe Marconi
      I was speaking with a shop owner the other day about an issue he is having with technician comebacks. After a series of questions, the reason for the comebacks became clear.
       
      At the start of the year he implemented a very aggressive growth strategy, putting a lot of emphasis on quotas, sales and labor production. The strategy also included increased bonuses for the service advisor and techs for hitting certain goals.
       
      Now, at its core, this is not a bad strategy. However, the focus was on quotas,sales, profit and production. What was lacking was a process to ensure that quality was maintained, and basing sale decisions on what is in the best interest of the customer.
       
      A focus on quotas instead of service quality, is a recipe for eventual failure. For example: Instead of setting a quota to sell 5 batteries this week and 10 sets of wiper blades, create a process that your technicians will test all batteries and inspect all wiper blades. This strategy will achieve the same results while maintaining a focus on quality and integrity.
       
      The bottom line is we all need goals. But we also need to maintain quality. So, when setting your goals, include a quality control process to cut down on mistakes before the customer gets his car back. Put emphasis on customer service and integrity. Celebrate positive customer reviews. And lastly, base all service and repair recommendations on what is in the best interest of the customer.
    • By Joe Marconi
      Source: Will Minimum Wage Hikes Affect Auto Repair Shop’s Technician’s Pay?


×