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How do you keep the help motivated in December once they've spent their Christmas bonuses? It seems that giving out an end of year bonus early would hurt production.

 

Speaking personally from being on the receiving end of a bonus, and from a family business with a similar tradition to what Xrac has implemented, I think it's much more important to be transparent and stick to a set cadence. You're worrying about trying to squeeze out a few hours of production in a couple weeks when really an annual bonus is meant to reward consistent loyal help. Paying it in November vs December or January really doesn't make a difference, Xrac is just trying to be helpful to his employees who might want to take advantage of some sales. Annual also can be calendar year or fiscal year or some random month, so his employees have worked the 12 months since last bonus anyway.

 

I doubt his employees aren't thinking that they can take it easy in December.. they're probably thinking about it in July when they are dreaming of a beach vacation the following year.

 

You could also set some guidelines about how business performance affects end of year bonuses.. if it's profit sharing, then everyone can get behind trying to keep costs down, and selling more services..

 

Just food for thought.

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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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