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Joe Marconi

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  • 3 months later...
I have programs in place that are working good. I was looking to see the details of other programs out there. I have 3 tire and automotive stores with 45 employess and am always looking for betters ways to motivate.

 

That is very impressive. Are you part of any tire/automotive banner programs? Goodyear, Firestone, ACCC, etc..

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  • 4 weeks later...
We are similar in our approach. The plan is a bit involved but I will summarize:

 

- “A” rated techs must book 1 hour of labor for every 1 hour they work (100% productive). They get a set hourly wage and a bonus for booking over 100%

- “B: rated techs, same as above, except they must reach 90% productivity

- Service advisors and managers are paid salary. They must reach sales goals based on break-even and last year sales. They get a percentage of the increase over that goal.

- We also team sales goals where all employees get a bonus if sales reach a second, higher sales goal.

 

When you folks have instituted changes in pay plans, how have you gone about the process?

 

Presumably you start by developing a formula based on stimulating yet proven ideas from some outside source

 

Then you " run the numbers" based on how this new pay plan will affect the people who work for you and your business.

 

Do you run the old plan and new plan simultaneously for a month let's say so that those stepping up to the plate with increased performance are rewarded and those not stepping up have the safety net of the old plan but are made aware of what the new one will be to their paycheck

 

Finally dump to old plan and let the chips fall where they may (i.e. risk the loss of 1 or more staff)

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.

.Techs are paid on % of labor

Sales people are pd hrly + % of sale

Mgrs are pd hrly, % store sales + bonus for sales increase over previous yrs sales for the month

 

 

Can you disclose publicly or privately those %s? ([email protected])

 

Is your benefits package generous?

 

One seminar I attended by ATI recently (Jan 08) contended that loaded techs' GP should be 60% (Labor Income generated by the tech - [tech's wages + vacation pay + other pay + 11.5% of the tech's total wages for payroll taxes + company paid portion of Health Insurance premiums + Workers Comp premiums for that tech {which is based on the tech's wages}] = Gross Profit for this tech/ Labor Income generated by this tech = % Labor GP (Loaded)

 

After doing this calculation I realized how short we are on the "loaded" Labor GP even though our "unloaded" Labor GP% was above the industry target

 

I feel I am in a real pickle and definitely looking for some insight and solutions.

 

 

To raise our Labor Rate without raising techs' wages would help for sure. We are already at the high end in our area so we stand the risk of losing new clients who balk at the high prices. I know that we retain a lot of clients with superior quality and service but we also lose a lot because our prices are too high - they come once and never return.

 

To cut benefits can play out as losing or at least disturbing an excellent team and is in reality a pay cut

 

A more bold move is to cut techs' wages - a great way to success...

 

I certainly need more car count with an average RO of $ 395 but not sure about the most effective method to attain that, or cut one of my techs loose - problem is that summer will soon be here with tourists and money flowing more freely and more vehicles in the area

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  • Have you checked out Joe's Latest 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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