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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. 

Ulfar Rookie

Ulfar

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  On 7/9/2023 at 12:06 PM, 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. 

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