Are WE the Problem? Are Some Shops pushing Technicians Away from the industry?

[Joe Marconi]

On a recent podcast, I listened to a technician complaining about the repair quality from some repair shops.  He also stated that we don't have a lack of technicians, we have a lack of quality repair shops to choose from, which is pushing techs out of the industry, and a reason why we don't attract enough qualified people. 

I understand that this his perspective, and one point of view. But does he have a point? 

 

 

[Transmission Repair]

1 hour ago, Joe Marconi said:

On a recent podcast, I listened to a technician complaining about the repair quality from some repair shops.  He also stated that we don't have a lack of technicians, we have a lack of quality repair shops to choose from, which is pushing techs out of the industry, and a reason why we don't attract enough qualified people. 

I understand that this his perspective, and one point of view. But does he have a point? 

 

 

Yes, he has a valid point.  I believe there is a disconnect between quality techs and quality shops.  It seems to me that the quality techs can't find a quality shop and the quality shops can't find quality techs.

I also believe that a compensation framework built upon the flat rate system does more to push techs out of our industry than any other single cause.  Running a close second is shop culture.  In Adam Smith's 1776 book, The Wealth of Nations, he was the first to recognize the supply and demand theory of markets.  As the quality and quantity of techs dwindles, compensation will increase.  By how much will be determined by the markets.

Over time, I further believe there will be a "shake out" of quality shops where the quality shops will thrive and the other shops will eventually go away.  The future market for quality techs will be driven by the number of quality shops.

[Joe Marconi]

31 minutes ago, Transmission Repair said:

Yes, he has a valid point.  I believe there is a disconnect between quality techs and quality shops.  It seems to me that the quality techs can't find a quality shop and the quality shops can't find quality techs.

I also believe that a compensation framework built upon the flat rate system does more to push techs out of our industry than any other single cause.  Running a close second is shop culture.  In Adam Smith's 1776 book, The Wealth of Nations, he was the first to recognize the supply and demand theory of markets.  As the quality and quantity of techs dwindles, compensation will increase.  By how much will be determined by the markets.

Over time, I further believe there will be a "shake out" of quality shops where the quality shops will thrive and the other shops will eventually go away.  The future market for quality techs will be driven by the number of quality shops.

You bring up another rather sticky point, but valid; our pay structure, and the flat rate system. 

Also, very impressed, Adam Smith and the Wealth of Nations, a timeless classic!

[Gary Childs]

Great points for sure. I take pride in being quality shop for both my customers and my people working for me. No flat rate here at all, very good hourly pay and bonus's payed monthly as a team. I take pride in not selling things not needed right away like brakes at 20% life and just let the customer know they will be needing brakes in the next 6-12 months or so and we will keep and eye on them at oil changes etc. One of the things I learned long ago was how you treat a comeback or warranty problem, that gets top priority over anything right away! Get it back in the shop right away over any other work etc that is here or waiting to be worked on. Fixing a comeback or warranty instantly as we can gives more good word of mouth then anything else it seems. My guys know how I work and they all look out for customers for us too, pay them very good and they know it. Heck if we even get all the work done for the day I let them go home and pay them for the whole day. 

 

[Joe Marconi]

15 hours ago, Gary Childs said:

Great points for sure. I take pride in being quality shop for both my customers and my people working for me. No flat rate here at all, very good hourly pay and bonus's payed monthly as a team. I take pride in not selling things not needed right away like brakes at 20% life and just let the customer know they will be needing brakes in the next 6-12 months or so and we will keep and eye on them at oil changes etc. One of the things I learned long ago was how you treat a comeback or warranty problem, that gets top priority over anything right away! Get it back in the shop right away over any other work etc that is here or waiting to be worked on. Fixing a comeback or warranty instantly as we can gives more good word of mouth then anything else it seems. My guys know how I work and they all look out for customers for us too, pay them very good and they know it. Heck if we even get all the work done for the day I let them go home and pay them for the whole day. 

 

Gary, True Leadership Wisdom. As you state it IS all about the culture of the company, founded in hard work, team work, integrity and just doing the right thing for the right reasons.  There are a lot of shops like yours. I have the highest respect for every shop owner on the planet, however, our responsibility also rests with the future. We, as an industry must do all we can to ATTRACT and RETAIN qualified and passionate people.