Quantcast
Jump to content


Incentive Pay Ideas for Technicians [THA 282]

carmcapriotto
 Share

Recommended Posts

carmcapriotto Grand Master

carmcapriotto

Posted
Posted
  • 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.


Connect with the Podcast Aftermarket Radio Network Subscribe on YouTube Visit us on the Web Follow on Facebook Become an Insider Buy me a coffee Important Books Check out today's partners: More Time. More Profit. Shop-Ware Shop Management getshopware.com ARN-Website-Banner-1200x400-1.png Screenshot_340-1.png

Click to go to the Podcast on Remarkable Results Radio

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing

  • Available Subscriptions

    See all Subscription Plans

  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's Blog
         0 comments
      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.

  • Similar Topics

    • carmcapriotto
      Emerging Technology? It’s Been Parked in Your Bay for Years [THA 434]
      By carmcapriotto
      Thanks to our Partners, NAPA TRACS, and Today's Class Recorded at the NAPA Now Conference celebrating NAPA Auto Care’s 100th anniversary, this conversation dives into the realities of emerging automotive technologies, especially ADAS (Advanced Driver-Assistance Systems). The discussion emphasizes the critical need for proper calibration procedures, equipment, and technician training to keep pace with rapidly evolving tech. From static vs. dynamic calibrations to the integration of AR/VR tools, the panel explores the industry's struggles to adopt new technology and the personal traits, like hyperfocus, needed to thrive in today’s complex diagnostic landscape. The takeaway: adaptation, education, and investment are no longer optional; they’re essential for staying competitive.
      Bill Weaver, NAPA Autotech Trainer. Listen to Bill’s previous episodes HERE Matt Fanslow, Riverside Automotive, Red Wing, MN, Diagnosing the Aftermarket A to Z Podcast Show Notes:
      Watch Full Video Episode Introduction to Town Hall Academy (00:00:00) NAPA's 100-Year Legacy (00:01:19) Emerging Technologies in Automotive (00:04:29)r. ADAS Calibration Challenges (00:08:06) Industry Ignorance Towards ADAS (00:11:11) Frustration with Industry Changes (00:13:01) Fear of New Technologies (00:14:44) Calibration Concerns (00:18:06) Dynamic Calibration Challenges (00:18:19) Legal Implications of Calibration (00:20:02) Tire Repair Liability (00:20:25) Importance of Following Procedures (00:21:24) ADAS Responsibility (00:24:01) Collaboration Among Shops (00:25:40) Cost of Living Awareness (00:27:16) Spinning Plate Syndrome (00:31:06) ADHD and Hyperfocus (00:35:27) Job Security and Continuous Learning (00:41:02)
      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/ Thanks to our Partner, Today's Class Optimize training with Today's Class: In just 5 minutes daily, boost knowledge retention and improve team performance. Find Today's Class on the web at https://www.todaysclass.com/ Connect with the Podcast: -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters -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 X: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -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 -Special episode collections: https://remarkableresults.biz/collections The Aftermarket Radio Network: https://aftermarketradionetwork.com/ Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/ Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/ Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/ The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/ The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/ Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/
      Click to go to the Podcast on Remarkable Results Radio
    • carmcapriotto
      Is My Labor Rate Too Low? [E171] - Business By The Numbers
      By carmcapriotto
      Thanks to our partner Promotive
      Key Takeaways:
      Effective Labor Rate [E128]: https://huntdemarest.captivate.fm/episode/128
      Thanks to our partner, Promotive
      It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
      Paar Melis and Associates – Accountants Specializing in Automotive Repair
      Visit us Online: www.paarmelis.com
      Email Hunt: [email protected]
      Text Paar Melis @ 301-307-5413
      Download a Copy of My Books Here:
      Wrenches to Write-Offs Your Perfect Shop 
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/
      The Auto Repair Marketing Podcast with Kim and Brian Walker https://autorepairmarketing.captivate.fm/
      The Weekly Blitz with Chris Cotton https://chriscotton.captivate.fm/
      Speak Up! Effective Communication with Craig O'Neill https://craigoneill.captivate.fm/
      Click to go to the Podcast on Remarkable Results Radio
    • nptrb
      Optimizing Your Parts Inventory to Reduce Costs
      By nptrb

      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.

    • carmcapriotto
      Are You Actively Applying Knowledge Or Passively Consuming Information? [THA 432]
      By carmcapriotto
      Thanks to our Partners, NAPA TRACS, and Today's Class Recorded at the TST Big Event, industry trainers Eric Ziegler and Pete Meier dive into the growing challenges technicians and shop owners face in staying current with technology and why continuous education is no longer optional. The conversation highlights key issues including the liability risks of inadequate training, the double-edged sword of social media as an information source, and the power of peer-to-peer knowledge sharing. Eric and Pete also stress the importance of actively applying what’s learned, not just passively consuming information, and how networking with other professionals can accelerate growth.
      Eric Ziegler, EZ Tech Mentors.  Eric’s previous episodes HERE.
      Pete Meier, Training Manager, Dorman Products. Pete’s other episodes HERE
      Show Notes:
      Watch Full Video Episode TST Big Event 2025: https://www.tstseminars.org/ Introduction to the Episode (00:00:00) Overview of Training Importance (00:01:03) Cultural Shift in Training (00:03:04) Incentivizing Training (00:04:08) Training Formats and Challenges (00:05:00) Technician Growth and Retention (00:06:55) Advocating for Continuing Education (00:07:40) Financial Commitment to Training (00:08:20) Cultural Commitment to Education (00:09:24) Awareness of Training Resources (00:10:09) Networking at Training Events (00:11:19) Building a Positive Training Culture (00:12:52) Value of Training Experiences (00:14:04) Networking Importance (00:14:38) Training Takeaways (00:14:59) Building a Training Culture (00:18:56) Mentorship in the Industry (00:19:05) Service Information Awareness (00:21:50) Consequences of Ignoring Updates (00:22:39) Importance of Accurate Training (00:26:02) Battery Maintenance and Diagnostics (00:28:17) Technician Homework (00:30:53) Social Media's Role in the Industry (00:31:22) Generational Changes in Automotive Skills (00:33:30) Quality vs. Price in Automotive Services (00:36:40) Vetting Information Sources (00:38:24) Making Training Practical (00:41:19) The Forgetting Curve (00:42:19) Taking Action on Learning (00:43:05) Business Perspective on Training (00:43:43) Changing Technician Compensation (00:44:53)
      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/ Thanks to our Partner, Today's Class Optimize training with Today's Class: In just 5 minutes daily, boost knowledge retention and improve team performance. Find Today's Class on the web at https://www.todaysclass.com/ Connect with the Podcast: -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters -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 X: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -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 -Special episode collections: https://remarkableresults.biz/collections The Aftermarket Radio Network: https://aftermarketradionetwork.com/ Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/ Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/ Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/ The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/ The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/ Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/
      Click to go to the Podcast on Remarkable Results Radio
    • carmcapriotto
      The Largest Tax Cut in US History? [E170] - Business By The Numbers
      By carmcapriotto
      Thanks to our partner Promotive
      In this episode of Business by the Numbers, Hunt Demarest, CPA of Paar Melis and Associates, explores the details behind what former President Trump is calling the "largest tax cut in U.S. history." What’s actually in the proposed bill? Will any of it pass Congress? And most importantly, what could it mean for auto repair shop owners and other small business operators?
      Hunt unpacks what we know so far, what’s still uncertain, and how business owners can start thinking strategically. From potential expansions of the Child Tax Credit and QBI deduction to the controversial proposals of eliminating taxes on tips, overtime, and Social Security, this episode covers the key elements that matter most.
      Whether you’re looking to stay informed or proactively plan for future changes, this episode offers a grounded look at what’s on the table—and what’s likely to be left off.
      Key Takeaways:
      What’s included in the proposed 2025 tax cut and what’s still up for debate The current status of the Child Tax Credit, QBI deduction, bonus depreciation, and SALT deduction cap Potential elimination of taxes on Social Security income—and whether that’s realistic A breakdown of the proposed “Millionaire Tax” and its implications for high earners Why the talk of tax-free tips and overtime could create major planning opportunities for business owners
      What shop owners need to watch for and how to prepare as legislative discussions continue
      Thanks to our partner, Promotive
      It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
      Paar Melis and Associates – Accountants Specializing in Automotive Repair
      Visit us Online: www.paarmelis.com
      Email Hunt: [email protected]
      Text Paar Melis @ 301-307-5413
      Download a Copy of My Books Here:
      Wrenches to Write-Offs Your Perfect Shop 
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/
      The Auto Repair Marketing Podcast with Kim and Brian Walker https://autorepairmarketing.captivate.fm/
      The Weekly Blitz with Chris Cotton https://chriscotton.captivate.fm/
      Speak Up! Effective Communication with Craig O'Neill https://craigoneill.captivate.fm/
      Click to go to the Podcast on Remarkable Results Radio


  •
    Joe Marconi

    Five Proven Tips to Improve Your Bottom Line

    By Joe Marconi, in Selling Automotive Repair,

    0 comments 1,783 views
    Joe Marconi

    Marketing Strategies To Attract and Retain Your Ideal Customers

    By Joe Marconi, in Automotive Marketing,

    0 comments 1,040 views
    Joe Marconi

    Isn’t It Time We Rethink What a Master Level Technician Is?

    By Joe Marconi, in Automotive Industry,

    1 comment 1 1,945 views

  • Our Sponsors



Main Sections

More Sections

Discussion Forums

×
×
  • Create New...