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Got your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
By Changing The Industry
Episode 151 - A Shop Owner's Guide to Consolidation and Exit Strategies
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
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In this podcast episode, Coach Chris Cotton and Coach Al Anderson discuss the auto repair industry. Anderson, a shop owner, shares his journey from auto technician to shop foreman, and eventually independent shop owner. He talks about the challenges and successes he has experienced, the importance of fair pricing, and the benefits of fleet work. The coaches also discuss the importance of continuous learning and coaching in the industry. Anderson shares his insights on the transition towards electric vehicles and hybrids, and the impact of this shift on the industry. He concludes by emphasizing the importance of adapting to market changes.
Coach Al Anderson's background and experience (00:04:29) Coach Al shares his journey in the automotive industry, from attending automotive school to becoming a shop foreman and eventually starting his own independent shop. The struggle of maintaining fair prices (00:10:49) Discussion on the challenges faced by auto shops in maintaining fair prices while competing with dealerships charging higher rates. Benefits and challenges of fleet work (00:12:41) Exploration of the advantages and cyclical nature of fleet work for auto repair shops, along with the importance of providing excellent service to fleet customers. The importance of continuous education and coaching (00:15:31) Explanation of why business owners in the auto repair industry should seek guidance from coaches and engage in continuous education to stay ahead in a rapidly changing industry. The Original All Stars of Auto Shop Marketing (00:20:04) This topic discusses the importance of partnering with the original shop marketing pros who understand the nuts and bolts of marketing in the auto repair shop industry. Why Choose Coach Al Anderson? (00:21:32) Coach Al Anderson explains his unique background and experience in growing successful businesses, offering insights and strategies to help auto shop owners avoid common mistakes and take their businesses to the next level. Insights on the Industry and Government Regulations (00:27:19) Coach Al Anderson shares his perspective on the automotive industry, past government regulations, and how consumer demand ultimately shapes the market, including the current trend towards electric cars. Electric Vehicle Transition (00:29:07) Discussion on the shift towards electric vehicles and hybrids, including the challenges of range and charging stations, market changes, and government incentives. Market Shift and Manufacturer Responses (00:29:58) Exploration of the changing market dynamics, with flooded dealerships, price reductions, and manufacturers like Ford and Toyota adjusting their production based on customer demand. Future of Internal Combustion Engine (00:30:54) Debate on the future of the internal combustion engine, questioning whether it will completely disappear and the industry's gradual adaptation to hybrid and electric cars.
Connect with Chris:
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros
Click to go to the Podcast on Remarkable Results Radio
This week, Hunt sits down for an insightful Chat with Joelle Pollak to talk about how Promotive is tackling staffing shortages in the automotive aftermarket, offering innovative solutions for shop owners.
Expert Take on Recruitment Challenges: Dive into the complexities of hiring, focusing on the crucial balance of pay, benefits, and shop culture in attracting and retaining top talent. Promotive's Strategic Approach: Learn about Promotive’s unique strategies in talent retention and their collaboration with technical schools to address the technician shortage. Streamlined Staffing Solutions: Explore how Promotive’s comprehensive services simplify the recruitment process, saving time and efficiently matching shops with ideal candidates.
Thanks to our partners, NAPA TRACS and Promotive
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.com
It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. 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]
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Aftermarket Radio Network
Click to go to the Podcast on Remarkable Results Radio