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MECHANIC PAY PLAN


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Hello All,

I hope in these uncertain times that you all stay healthy and continue to thrive with your shops.

Questions/needed guidance from the forum would greatly be appreciated. I currently have 1 mechanic  that is salary. This mechanic takes on heavy line work for us. Removing and installing transmissions. Engine replacements. Things of that natue.

I am adding another mechanic to my crew and wanted him to be on a more flag/possible performance pay plan to suit his style of work for daily jobs that would include maintenance work, brakes, tune ups, ETC. I was curious what pay plans you all had out there for a mechanic of this style and possibly pros/cons to it as well

Any and all help would be greatly appreciated. 

Henry 

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I despise a salary pay plan..... even as a former employee.  Just meant they expected 80 hours a week for the same pay.   My only advice though is that if you have multiple techs, you have an extremely similar pay plan for them all. I started out just paying flat rate.  I had some issues with employees that didn't feel they were getting paid to clean up (after their own work) and therefore adjusted my pay plan.  I now have an hourly rate for the hours they are there as well as a flat rate for all booked hours. This has worked best for me and my employees. It has stabilized their paychecks quite a bit, and still gives the motivation to book hours.   If you have two techs on two completely different pay plans, they will figure that out eventually and at least one of them will think you are screwing them.... if not both.

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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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