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Incentive Pay Ideas for Technicians [THA 282]


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  • Motivation- based on relationship, culture, and attributes that empower them. 
  • You must be profitable to have financial rewards
  • Your business model needs to be sustainable, growable, and expandable based on labor- you need to be profitable in labor
  • Performance-based pay: pure pay for what they produce, to hourly based with an incentive scale that gets them to $50 to $70 an hour.
  • Interview- paid training, employment programs for career growth, ask about their dreams and their ‘why’ and plan their incentive pay
  • You're not hiring a technician, you’re hiring for a career and lifestyle 
  • Employees are looking for security and longevity 
  • Bonuses: it’s the cherry on top, monthly/annual hours into training raises base hourly, ASE master raises base hourly, longevity bonuses for tenure, tool bonus based on hours or punctuality, consistency bonus: produced 50 hours or more for 2 to 5 weeks in a row earn up to another $5 an hour, leadership & personal development incentive: be a better version of themselves, Apprentice toolbox they get to keep after 5+ years, etc
  • 74% labor GP on highest-paid tech- take 74%-100% = 26%, $40/.26= labor rate to be at 74%
  • Modifying pay- what is the intent? Can it continue to change? Are there potential negatives by adding to the pay if something goes wrong in the pay plan? You can’t compromise and be a giver and taker. 
  • Incentive plans don’t work if the employee doesn’t know how to track themselves. Teach your employees to watch themselves in the simplest way. 
  • Give freedom- expand to quarter or every 6-month programs to take into account vacation, sick time, etc. Don’t make it a disincentive plan
  • Critical sick time, health spending account, ‘pay the vacation,’ health benefits plan for families, team bonuses
  • Your incentive plan should build your bench of technicians wanting to come work for you. One pay plan doesn't work for everyone. It also needs to be tied to your vision for the business.


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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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