Diagnosing Communication Problems A to Z [E002] - Speak Up!
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By Joe Marconi in Joe's Blog0 commentsThe Technician Shortage Is Our Fault, And It's Time We Own It
Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not?
Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
Have We Pushed Technicians Away?
Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down?
I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round, in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay.
Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?
Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job.
The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless.
Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.
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By mspecperformance
Lets assume you are opening a brand new shop. You are not moving shops so you don't have a customer base to start with. To get off the ground running, what are some key marketing pieces, campaigns or elements you would implement (or have implemented).
I'd love to hear your thoughts and ideas!
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By carmcapriotto
Thanks to our Partners, NAPA TRACS, Today's Class, KUKUI, and Pit Crew Loyalty Watch Full Video Episode Your posted labor rate may not be the labor rate you're actually collecting, and that gap could be costing your shop thousands of dollars every month.
In this episode, Carm Capriotto is joined by Andy Adams, a shop owner and business coach, and Rob Sperring, a service manager, to explain why the Effective Labor Rate (ELR) is one of the most overlooked yet impactful performance metrics in the auto repair industry. They break down why ELR falls short, how it affects profitability, and the practical steps every shop owner can take to close the gap.
What You'll Learn What Effective Labor Rate (ELR) is and why it matters more than your posted door rate. Why healthy shops should collect at least 90 percent of their posted labor rate. How unbilled diagnostic time, underpriced canned jobs, and complimentary inspections reduce profitability. Why excessive discounting, even with good intentions, can quietly erode your bottom line. How shifting consumer buying habits make labor profitability more important than ever. Why improving ELR creates opportunities to increase technician compensation and strengthen your business. How auditing repair orders can uncover missed labor opportunities and unnecessary discounts. Why updating your labor matrix and canned jobs can immediately improve financial performance. How sharing KPI's (key performance indicators) with your team builds ownership and accountability throughout the shop.
Effective Labor Rate is more than a financial matrix; it's a direct measure of how well your shop captures the value of the work it performs. By understanding where labor revenue is being lost and making intentional operational improvements, shop owners can increase profitability, invest in their teams, and build a stronger, more sustainable business. Rob Sperring, Grand Rapids Motorcar, Grand Rapids, MI Andy Adams, Adams Garage, Terre Haute, IN. Coach at Repair Shop of Tomorrow 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/ Thanks to our Partner, KUKUI Stop juggling multiple marketing tools. KUKUI’s integrated platform delivers 4x better website conversions, automated follow-up, and real-time ROI tracking. Get industry-leading customer support with KUKUI at https://www.kukui.com/ Thanks to our Partner, Pit Crew Loyalty You’re probably tired of chasing new customers who never return. We understand. Pit Crew Loyalty ends the one-and-done cycle, turning first visits into lasting, reliable revenue at https://www.pitcrewloyalty.com/ Connect with the Podcast: Visit the Website:https://remarkableresults.biz/ Subscribe on YouTube:https://www.youtube.com/carmcapriotto Follow on Facebook:https://www.facebook.com/RemarkableResultsRadioPodcast/ Follow on LinkedIn:https://www.linkedin.com/in/carmcapriotto/ Follow on Instagram:https://www.instagram.com/remarkableresultsradiopodcast/ Join Our Virtual Toastmasters Club:https://remarkableresults.biz/toastmasters Join Our Private Facebook Community:https://www.facebook.com/groups/1734687266778976 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 Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/ Remarkable Results Radio Podcast with Carm Capriotto: Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/ Diagnosing the Aftermarket A to Z: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/ Business by the Numbers: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/ The Auto Repair Marketing Podcast: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/ The Weekly Blitz: Weekly Inspiration with Business Coach Chris Cotton from AutoFix – Auto Shop Coaching. https://chriscotton.captivate.fm/ Speak Up! Effective Communication: Develop Interpersonal and Professional Communication Skills with Craig O’Neill. https://craigoneill.captivate.fm
Click to go to the Podcast on Remarkable Results Radio
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By babyhydro
Hi everyone. I have a marketing idea I want to run past you all. I'm thinking about a Referral and Review program. How it will work is when someone refers a friend or someone leaves a review about their experience at our shop, they will be entered into a drawing which will be done live and saved on our Facebook page. Drawing will be for something like $250 cash for 2 different customers. Drawing held early December for extra Christmas money. What do you all think?
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By Riccardo
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