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  • Have you checked out Joe's Latest Blog?

         3 comments
      Got your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
      At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
      I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
      Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
      With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
      Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
  • Similar Topics

    • By Joe Marconi

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    • By carmcapriotto
      Industry experts discuss the future of the automotive industry, focusing on training, technology, and business strategies. They explore the importance of simplifying communication, utilizing video content for customer education, and the benefits of in-person versus virtual training. The panel also discusses the challenges of management training and the need for a holistic approach to business issues, emphasizing collaboration and a positive company culture. The episode provides insights into adapting to economic changes and fostering industry growth through shared knowledge and experiences. Matt Fanslow, Riverside Automotive, Red Wing, MN, Diagnosing the Aftermarket A to Z Podcast Hunt Demarest, CPA, Paar Mellis and Associates, Business by the Numbers Podcast Kim and Brian Walker, Shop Marketing Pros, Auto Repair Marketing Podcast Chris Cotton, AutoFix Auto Shop Coaching, Chris Cotton Weekly Blitz Podcast Show Notes: Impact of COVID on business (00:02:37) Analysis of the impact of COVID on business performance and consumer behavior. Economic indicators and business mindset (00:06:40) Discussion of economic indicators, including credit card delinquencies, and the importance of mindset in business performance. Influence of external information (00:11:01) The impact of external information on mindset and decision-making within the industry. Proactive vs. Reactive business approach (00:13:35) The importance of a proactive approach and avoiding a reactive mindset in business management. The importance of long-term perspective (00:15:28) Discussing the need to take a step back and wait for trends to play out before making reactive changes. The impact of timing and consumer confidence (00:15:42) Exploring the delayed impact of business decisions and the importance of considering consumer confidence in financial planning. Dealing with business cycles and financial pressures (00:18:03) Understanding the impact of property taxes and the need to avoid overreacting to short-term financial fluctuations. Planning for financial obligations and cash flow (00:19:17) Discussing the importance of planning for taxes and managing cash flow to avoid financial stress. Balancing long-term trends and short-term anomalies (00:19:38) Emphasizing the need to focus on longer-term business trends and avoid getting caught up in short-term fluctuations. Consumer confidence and economic impact (00:20:53) Analyzing the influence of consumer perception and economic factors on business decisions. The importance of video marketing (00:24:05) Highlighting the significance of video content in marketing strategies and encouraging businesses to embrace video marketing. Community involvement and communication (00:29:02) Exploring the value of community engagement and face-to-face communication in marketing efforts. The customer's questions (00:29:56) The importance of answering customer's questions through video and blog content. Technology and future training (00:31:32) Trends in training, including in-person and virtual options, and the need for diverse training methods. Training workforce and team culture (00:33:06) Discussion on the training workforce, the importance of team culture, and the impact of training on company culture. Commitment to training (00:37:39) The commitment of independent shop owners to training and the challenges in getting employees to participate. Virtual training and lunch and learn (00:40:55) The increase in virtual training and the implementation of lunch and learn sessions with virtual trainers. Business management and training (00:42:07) Comparison of business management to car repair, addressing the need for a holistic approach to business issues.
      Thanks to our Partner, NAPA TRACS NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Connect with the Podcast -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter (X): https://twitter.com/RResultsBiz -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections        
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
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      Thanks to our Partner, NAPA TRACS NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Connect with the Podcast -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter (X): https://twitter.com/RResultsBiz -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections        
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
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      Thanks to our Partner, NAPA TRACS NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Connect with the Podcast -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter (X): https://twitter.com/RResultsBiz -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections        
      Click to go to the Podcast on Remarkable Results Radio
    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.



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