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Technician Pay Plans - Is there a Right Choice?

Joe Marconi
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Ulfar Rookie

Ulfar

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There are techs who thrive under the pressure of flat rate, but most either don’t (making too many mistakes) or they feel that the flat rate system has burned them too much.
 

Too often management uses flat rate as a way to control their labor expense (which is exactly the wrong way to look at technician time, they are a commodity not an expense) instead of trying to create ways to make the technicians more efficient. 
 

I personally think a hybrid pay system is best as it rewards both quality and speed. 
 

Sorry if I ramble a bit. 

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Ulfar Rookie

Ulfar

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10 hours ago, Joe Marconi said:

I tend to agree with you. 

To add to your comments, I do think that there is also a responsibility of the shop owner or manager to ensure that estimates are written properly, and that the correct labor is applied to each job (as best as possible).  For example. how often are deals made with the customer to sell the job, and many times the labor to test a complicated driveability problem is waived?  Does the tech get the labor time, or does the tech suffer? There are many more examples.  Labor hours is not just techs responsibility. It takes a team effort. 

It definitely is a team effort. It also requires a serious effort on the counter side. If you’re paying your technicians in ANY fashion that relies on an accounting of their time then they should get some amount of time every time they touch a vehicle. Even if the shop waives the diag or the bulb install or whatever. The tech should NEVER be on the short end of a deal made between the business and a client.

In addition I personally feel that almost all costs are the responsibility of the business, short of an employee’s gross negligence. Though even then the shop may cover the expense and either terminate or reprimand the employee dependent on the circumstances. 

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