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Why technician pay incentive bonuses may backfire


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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.

 

Very wise words! Thanks for sharing!

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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.

i stole your post and emailed to my guys, hope you don't mind, it was well said.

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  • Have you checked out Joe's Latest Blog?

         0 comments
      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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