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Incentive Plans for Technicians


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I wanted to start an incentive plan for my technicians to try and light a little fire behind them to WANT to try and get the jobs done quickly (my shop currently pays hourly - no flat rate). Does anyone have a good incentive plan that they have used or are using currently at their shop? Any assistance or advice would be greatly appreciated!

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Well I have never been a fast mechanic because in my personal opinion fast = sloppy. However; if you are looking to cut out "dead air" time with your mechanics, possibly a small profit sharing incentive will improve that. Hourly rate + commission for the job.

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I wanted to start an incentive plan for my technicians to try and light a little fire behind them to WANT to try and get the jobs done quickly (my shop currently pays hourly - no flat rate). Does anyone have a good incentive plan that they have used or are using currently at their shop? Any assistance or advice would be greatly appreciated!

 

I have used a Flat Rate incentive program for the last 30yrs successfully w/less than 1% comeback or repair complaints. But this only works if you have a religious & stiff quality control program in place to make sure it doesn't get "sloppy or out of control".

 

We do this thru training our techs w/weekly video training programs, weekly shop status meetings which include round table discussions between mgmnt & tech's, spot checking the jobs with random QC tests drives/inspections from svc mgr & a follow-up call to the customer w/i days of there p/u.

 

These procedures have always taken a little extra time & commitment, but the results are great! The tech's are happy & profitable, as the owner--I'm happy & profitable, the shop has a good vibe & flow & the most important thing is the customers are happy & actually overwhelmed that a Auto Shop would follow-up with them to make sure they're satisfied with the work & performance of their vehicle.

 

Thats my best suggestion of what I know works with the proper management & implementation. Good Luck, Rod

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  • 3 months later...

I wanted to start an incentive plan for my technicians to try and light a little fire behind them to WANT to try and get the jobs done quickly (my shop currently pays hourly - no flat rate). Does anyone have a good incentive plan that they have used or are using currently at their shop? Any assistance or advice would be greatly appreciated!

 

When paying an hourly rate you could create a tiered pay matrix. When charged hours range between

00.00 - 50.00 pay $15.00/hour

50.01 - 70.00 pay $17.00/hour

70.01 + pay $20.00/hour

 

The number of hours the tech is payed for is up to you (Actual hours or Charged Hours)

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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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