Quantcast
Jump to content


How to part ways with a long time employee?

hello5555
 Share

Recommended Posts

hello5555 Rookie

hello5555

Posted
Posted

I currently employ a mechanic and friend who has been with me for about 20 years. He was formerly a transmission rebuilder, but we have switched to mostly reman units and have no need for a rebuilder. His pay has remained the same despite his value declining. I am currently paying him roughly $100,000 a year. The problem i'm having is that his skill set is not near that pay level anymore. He does light diagnostic and basic managerial work, but I am not confident enough for him to run the shop for more than an hour. With the current state of the industry our numbers have gone down a bit over the last two years. While still being profitable, I can't help but think about the extra income that would be available by terminating this employee, I just dont know how to do it. Any advice on how to do this? I like him as a person and have known him a very long time, but I feel his is paid about twice as much as he is worth. Any help wouldbe greatly appreciated.

Link to comment
Share on other sites


CARMandP Proficient

CARMandP

Posted
Posted

I have the same issue just reversed. I have a long time friend who is an excellent transmission builder but very slow when it comes to normal diagnostic or work. He is looking for a job closer to his home but I don't think that he would be a good fit. I feel your pain :(

Link to comment
Share on other sites
  • 7 years later...
Bill Cyr Newbie

Bill Cyr

Posted
Posted

@hello5555, I would come up with an alternative pay solution for him. Sit down with him and just let him know what’s up. Ask if he would be willing to take a new salary. Explain to him that you value him but can no longer continue to pay his current salary with the lack of rebuilding he is doing. It’s a sign of the times.

Link to comment
Share on other sites
  • 1 month later...
NCTransmission Rookie

NCTransmission

Posted
Posted

Goodness gracious, are you a business owner?  Do you run a "for profit" business?  There is a LOT unsaid here.

You have a rebuilder on premises, but have switched to mostly remanufactured units.  So either your ticket costs have raised dramatically or you're leaving profit out there.  Why did you switch?

It's not a popularity contest, it's not a friendship.  He's got it MADE and he is going to suck at your teat until you pull him off.  It's not personal, it's business.  You owe it to yourself, your family and every productive member of your team, AND YOURSELF to make that move.  

Link to comment
Share on other sites
hello5555 Rookie

hello5555

Posted
  • Author
Posted

NCTransmission, 

The original post was from 2012. The employee is still with us, we decided his loyalty was more important than a few extra dollars profit. Since then we have come up with a new role for him and although he is still overpaid by most standards I don’t regret keeping him. We’ve increased business by over $1.5 million per year since 2012 and his hard worked has helped us get to this position. I wouldn’t consider him someone that is “sucking at my teat”. I would consider him a loyal, lifetime employee that I’m proud to have on my team. Sometimes you just need to be creative and figure out how to switch things up with loyal, hard working people rather than cut them and move on to the next guy. 

  • Like 2
Link to comment
Share on other sites
  • 3 weeks later...
alfredauto Experienced

alfredauto

Posted
Posted

I'm glad you kept him. I understand what running a business is about but people aren't tools that can be thrown away when they become obsolete. I'm sure your customers notice the same mechanic there for 20 years how would you explain it to them he stopped making you rich so you let him go. 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing

  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      Your First Step to Attract & Retain Quality Employees
      By Joe Marconi in Joe's Blog
         4 comments
      A recent study, done by Harvard Business School, concluded that the real problem with attracting and retaining employees has more to do with the workplace environment, not pay or benefits. While the study did find that an adequate pay plan and offering an attractive benefits package did help with recruiting and retention, it’s not enough to satisfy the needs of employees, especially those of front-line workers.
      The study also stated that in 2021, many companies were convinced that giving raises, sign-on bonuses, and other perks would solve the worker shortage problem and prevent people from quitting. However, this strategy did not work. So, what does work regarding attracting quality people and keeping them employed?
      Essentially, it all comes down to the culture of your company.  Management: do all it can to consider the individual needs of your employees. Your employees want to feel that they have a voice, that their opinion counts, and that their role in your company is both respected and recognized. Yes, pay and a great benefits package will go a long way toward making your employees feel secure, but that’s only financial security. People want more than money.
      To attract and keep top talent requires creating a company that people feel proud to work for. You need to reach the hearts and minds of your employees. Become a leader that people are enthusiastic about working for. You want your employees bragging to their friends and family that your shop is a great place to work!
      Step one to attracting and retaining quality employees: Create an amazing workplace environment for your employees!  Trust me, happy employees make happy shop owners too!

  • Similar Topics

    • Joe Marconi
      Many shops say Business has slowed up. Winter related? Or a sign?
      By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • carmcapriotto
      "Accelerate Your Success: Why Independent Auto Repair Shop Owners Need a Business Coach" - Chris Cotton Weekly Blitz
      By carmcapriotto
      This episode is sponsored by AutoLeap. AutoLeap is a cloud-based all-in-one automotive invoice software that helps you supercharge your mechanic shop. Their customers have experienced:
      30% increase in revenue by improving transparency and trust
      50% reduction in time spent researching and ordering parts
      10% increase in profit margins through robust reporting
      Click here to learn more about AutoLeap and schedule a demo:
       
      AutoLeap Link: http://bit.ly/3GRgO88
       
      In this podcast episode, Coach Chris Cotton discusses the importance of having a business coach for independent auto repair shop owners. He lists 16 reasons why having a coach is beneficial, including providing accountability, fresh perspectives, and unbiased insight. A coach can also help with setting attainable goals, improving organization, and celebrating wins. Additionally, they can assist with growth strategies, financial management, employee management and training, and industry expertise. Coach Chris emphasizes that having a coach is essential for shop owners to achieve their dreams and take their businesses to the next level.
      Should You Have a Business Coach? [00:01:44] Coach Chris Cotton explains why everyone should have a business coach, the challenges of running a business, and how a coach can help you achieve your goals.
      Unbiased Insight [00:06:40] A business coach provides unbiased constructive criticism and insights that friends, family, and coworkers may not be able to offer.
      Fresh Perspective [00:08:02] A business coach can help you identify problems and solutions that you may have overlooked due to being too involved in your business.
      Growth [00:07:29] A coach can help you create a strategic business plan to boost growth, qualify your database, and generate leads.
      Balance [00:08:21] A coach can teach you how to balance your professional and personal life, encouraging you to take breaks and prioritize work-life balance.
      Employee Management [00:11:50] A coach can assist in building a strong team, providing guidance on hiring, training, and retaining skilled employees, and implementing performance management systems.
      Don't forget to rate and review us!
      Connect with Chris:
      [email protected]
      940.400.1008
      www.autoshopcoaching.com
      Facebook: https://www.facebook.com/AutoFixAutoShopCoaching
      Youtube: https://bit.ly/3ClX0ae
       
      #autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair
      Click to go to the Podcast on Remarkable Results Radio
    • ASOG Podcast
      Demeny Pollitt Realizes Her Mechanic Was Taking Her for a Ride
      By ASOG Podcast
      Demeny Pollitt Realizes Her Mechanic Was Taking Her for a Ride
    • carmcapriotto
      "Skydiving and Diagnostics, But Not at the Same Time" with Keith Perkins - Diagnosing the Aftermarket A to Z
      By carmcapriotto
      Scan tools People holding the scan tools Die on the Hill you Train on Skydiving and processes  
      Thanks to our Partner, NAPA AUTOTECH napaautotech.com
       
      Email Matt: [email protected]
      Diagnosing the Aftermarket A - Z YouTube Channel HERE
       
      Click to go to the Podcast on Remarkable Results Radio
    • Joe Marconi
      Have You Increase Pay & Benefits to Retain Employees?
      By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.



  • Joe Marconi

    Quiet Quitting: New Phrase, Old Problem. Featured in Ratchet and Wrench Magazine

    By Joe Marconi, in Joe Marconi's Tips and Articles,

    1 comment 762 views
    nptrb

    Why We Do Bookkeeping

    By nptrb, in Automotive Industry,

    0 comments 677 views
    nptrb

    Extension of the IRS Lookback Period: What you need to know

    By nptrb, in Automotive Industry,

    0 comments 602 views

  • Our Sponsors



Main Sections

More Sections

Discussion Forums

×
×
  • Create New...