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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?

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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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