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Technician pay

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I have a technician that I hired about 10 months ago. He came with 8 years experience from a Mazda dealer and some quick lube experience. We knew there would be a transition from going to a dealer with one make to our independent shop. He was hired with the understanding he would diagnose, repair and also do state inspections. I'm finding after 10 months that he is still lacking on the diagnosis side and sometimes even repair especially if he runs into something difficult. He is currently being paid $16 per hour on a 40 hour week and then $10 a flag hour. My lead tech is leaving in March and my dilemma is this tech will be lost with my lead. It took him 2 hours to diagnose a overheating issue which ended up being a cracked radiator and then the following day 3 hours to diagnose an ac issue. My question is should I cut him now, or change his pay. I feel like I'm not getting the bang for the buck.

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