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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 Hands On
Hi folks. A quick search and I did not see any recent alignment machine posts. I have a quote from Hunter, $86,000 includes a scissor life and the concrete work to flush mount it, shipping, the machine with wall mount cameras. Some accessories. If I do conservatively 3 alignments a week my break even is approx 4.5 years, a bit longer depending on financing cost.
I lease my shop, and one of my biggest fears has been getting kicked out of here. Should I be looking at obtaining a location instead? I am always nervous about taking on the massive cost of a bigger building, especially when I struggle so often to hire good people. I talked to a friend that went from a small shop like I have to a larger facility and he said it was a lot more headaches with very little increase in income. I want less headaches, less stress.
Maybe it is my small shop that makes it hard to hire? Is this the right time to try to get a new location? How do I even start finding financing, I do not have a ton of cash saved up right now. Should I get the alignment machine now, and continue to save up for a new location? How much do I need down for a new spot? Should I keep my eye open for other shops that might fail in the coming year and hold off on the alignment machine and continue to stack cash? I am kind of tired of loosing an employee for 30 minutes to an hour to run an alignment across town that may or may not get done to the same quality standards I hold my employees to.
In this episode of "Business by the Numbers," Hunt takes a look at the current state of government spending, the intricacies of the debt ceiling, and how this affects businesses and taxpayers.
• Current State of Government Spending and Debt Ceiling: The ongoing negotiations and potential outcomes if a spending deal isn't reached.
• Impact on Businesses and Taxpayers: Important fiscal policies like the Child Tax Credit, Employee Retention Tax Credit, and R&D Credit, and how they affect U.S. businesses and individual taxpayers.
• Political Dynamics and Future Projections: Analyzing the political landscape, including key figures and parties, and predictions on the government's fiscal direction.
• Practical Implications and Advice: Hunt’s insight on navigating the uncertainties in government policies and their impact on financial planning and business strategies
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]
Get a copy of my Book: Download Here
Aftermarket Radio Network
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By Changing The Industry
The Life Cycle of Training Events: Innovation or Repetition?
Ready to dive into the critical topics of safety and compliance within the automotive service aftermarket? Tom Herrmann shares valuable insights on maintaining a safe work environment, including hazard communication, safety data sheets, labels for chemicals, and the importance of employee training and clear safety policies. Tom emphasizes the role of safety as a form of salesmanship, advocating for selling the importance of safety to employees rather than focusing on potential fines and violations. The episode aims to instill a sense of responsibility in listeners, highlighting the importance of safety to prevent accidents and maintain a productive workforce. Tom Herrmann, Small Business Safety & Compliance Company, LLC.
Tom's background and experience (00:01:28) Tom shares his experience as a safety officer for the federal government and a compliance officer in the dealership network. Hazard communication and safety data sheets (00:06:42) Tom explains the importance of hazard communication and safety data sheets for chemicals in the workplace. Training and safety policies (00:05:37) Tom emphasizes the importance of training employees and having clear safety policies in place. Labels for chemicals and emergency action plan (00:13:50) Tom discusses the necessity of proper labeling for chemicals and the importance of an emergency action plan for workplace safety. Hazard Communications (00:15:04) Discussion on the importance of hazard communication and the need for updated safety data sheets for chemicals. Lockout Tagouts (00:15:32) Explanation of lockout tagout procedures for equipment safety, including a real-life incident and the importance of proper training. Equipment Safety (00:16:44) Importance of tagging and locking out malfunctioning equipment for safety, with examples of floor jacks and bench grinders. Bench Grinders and Eye Protection (00:17:37) Discussion on the necessity of eye protection when using bench grinders and the importance of following safety standards. Safety Inspections (00:19:37) Importance of regular safety inspections to identify and address potential hazards in the workplace. Eyewash Stations (00:20:11) The significance of eyewash stations and their compliance with safety standards for emergency eye flushing. Personal Protective Equipment (PPE) (00:21:28) Discussion on the responsibility of shop owners to provide and enforce the use of personal protective equipment for employees. Respiratory Protection (00:23:36) Importance of respiratory protection, medical evaluations, and fit testing for employees working with hazardous chemicals. Life Safety and Lift Safety (00:26:55) Overview of life safety measures, including the certification of automotive lifts and the importance of proper vehicle positioning on lifts. Certifications for Lift Installation (00:28:37) Discussion on the certification process for companies that install lifts and the availability of qualified and certified lift inspectors. Proactive Safety Measures (00:30:09) Emphasizing the importance of proactivity in safety measures, including monthly inspections, resources available, and reaching out for assistance. Safety Specialist Training (00:31:19) Exploring the idea of having a safety specialist in the shop and the training options available through OSHA education centers. Equipment Maintenance and Compliance (00:31:55) Focus on the importance of maintaining equipment, including lockouts, respiratory protection, PPE, and machine guarding, as well as the significance of checking fire extinguishers. Finding Safety Consultants (00:32:28) Tips for finding safety consultants, including searching for safety consultants online and reaching out to OSHA for assistance. Importance of Safety Compliance (00:33:16) Highlighting the significance of prioritizing safety compliance to prevent work-related injuries and ensure employee safety. Thanks to our Partners, AAPEX and NAPA TRACS Set your sights on Las Vegas in 2024. Mark your calendar now … November 5th-7th, 2024. AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at http://AAPEXSHOW.COM/WEBINAR 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/ Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -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 -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections
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