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We are trying to come up with a bonus program to include our estimators, office staff and parts employees. I think it would have to be structured differently for each but I am not sure what to base the bonuses on. Any ideas?

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We are looking at the same idea. We feel it is a team program all doing a great job to provide the best experience for the customer. We are all on salary & trying to increase our profits with new customers & retain existing. So I have tried to think of away to come up with a benchmark that say last year in the first quarter we did xxxx amount of sales this year we increased it buy 7000.00 so the group gets a part of that to split. My issues is A, just because we sold 7000.00 more don't mean our profit was much higher. This shouldn't be so tough I'm sure other shops have a plan that works & how do you back up showing your numbers when the employee says oh I know we made more than that without showing your finical. I have thought running off our profit & loss sheet but then get expense in there taken out like a new piece of equipment that the service advisor complains it should have been figured in because they don't use the machine.

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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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