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
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's Blog
         0 comments
      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.

  • Similar Topics

    • Joe Marconi
      Business Has Slowed Down? Or Back to the Way it Was?
      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
      Do the "Rich" Pay Their Fair Share of Taxes? [E114] - Business By The Numbers
      By carmcapriotto
      Welcome to this episode of "Business by the Numbers," where we dive deep into the often controversial topic of tax fairness. Join Hunt, as he explores if the wealthiest among us are really shouldering their fair share of the tax burden.
      • Defining 'Rich': How income levels and perceptions of wealth vary across different regions and impact tax contributions.
      • The Progressive Tax System: A closer look at how the U.S. tax system scales with income and what that means for the top 1% of earners.
      • Real Figures: We break down recent statistics to understand the actual tax contributions made by high earners.
      • Beyond Income Tax: Examining other significant tax obligations faced by the wealthy, including sales tax, property tax, and surtaxes.
      • Debunking Myths: Addressing common misconceptions about tax evasion among the wealthy and what the data really shows.
      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
      Click to go to the Podcast on Remarkable Results Radio
    • Joe Marconi
      Shop Owners: You are Only as Good as the People You Employ
      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.

    • Changing The Industry
      Episode 158 - Sean Tipping Confronts David On Withholding Technician Pay
      By Changing The Industry
      Episode 158 - Sean Tipping Confronts David On Withholding Technician Pay
    • carmcapriotto
      In 8 Years I’ve Been Through 68 Service Advisors [RR 942]
      By carmcapriotto
      Thanks to our Partner, NAPA Auto Care Recorded Live at Vision Hi-Tech Training & Expo, Jeremy O'Neal shares his journey of transforming a struggling business into a thriving enterprise, emphasizing the critical role of service advisor training.  Jeremy also highlighted how understanding the business, the owner's goals, and team dynamics is essential before implementing any training program. It's not just about fixing cars; it's about creating an exceptional customer experience that drives business success. Jeremy O’Neal, Advisorfix, Freedom Auto Repair, Hesperia, CA. Previous episodes HERE. Show Notes
      Service Advisor Coaching & Training: https://www.advisorfix.com/ Jeremy's Transition to Shop Ownership (00:00:36) Jeremy discusses his transition from service advisor training to owning Freedom Automotive. The Impact of Vision 2024 (00:04:17) Jeremy and Carm discuss the impact of the Vision 2024 event on their lives and the industry. Youth Presence at Vision 2024 (00:04:48) Carm and Jeremy discuss the significant presence of young talent at the Vision 2024 event. Jeremy's Business Growth (00:06:56) Carm inquires about the growth of Jeremy's business over the past eight years. The Importance of Service Advisor Training (00:07:11) Carm and Jeremy discuss the critical need for service advisor training in the automotive industry. Jeremy's Business Transformation (00:08:55) Jeremy shares the transformation of his shop, including significant growth and plans for expansion. The Role of Service Advisors in Business Growth (00:09:29) Jeremy discusses the potential for business growth by adding service advisors and technicians. Customer Service Challenges (00:10:45) Jeremy and Carm discuss the decline in customer service and the impact on the automotive industry. The Role of Customer Experience (00:12:21) Carm emphasizes the importance of creating a great customer experience in automotive repair shops. Parenting and Cultural Observations (00:13:24) Jeremy shares his observations and concerns about modern parenting and societal changes. Firing underperforming staff (00:15:20) Jeremy discusses his commitment to high service standards and the consequences for those who don't meet them. Training and standards (00:16:07) Carm questions Jeremy about his work-life balance and the importance of training in maintaining high standards. NAPA Auto Care Center program (00:16:55) Carm discusses the benefits of the NAPA brand and the Pro Image upgrade program for automotive shops. Employee commitment and performance (00:19:00) Jeremy shares his experiences with committed but underperforming employees and the impact on customer service. Service advisor training and culture (00:21:20) Jeremy emphasizes the importance of daily coaching and the shop owner's role in guiding training and culture. Continuous improvement and learning culture (00:23:03) Jeremy discusses the importance of employees having a learning culture and the availability of educational content. Phone call analysis and customer service (00:24:22) Jeremy explains the value of listening to service advisor calls for assessing competency and customer responses. Service advisor's impact on top-line sales (00:26:26) Jeremy highlights the significant impact of service advisor competency on the shop's top-line sales. Life Cycles with Customers (00:30:57) Jeremy shares a personal anecdote about a customer's car and the importance of understanding customer needs. Building Trust with Customers (00:31:35) Jeremy discusses the importance of building trust with customers and ensuring they follow the shop's process for repairs. Market Trends and Automotive Industry (00:32:52) Jeremy talks about market trends, the impact of COVID-19, and the future of the automotive industry, including the rise of EVs and hybrid vehicles. Success in the Marketplace (00:34:19) The discussion revolves around the importance of solid processes, good people, and effective marketing to succeed in the marketplace. Communication and Networking (00:35:18) The conversation shifts to the significance of communication and networking, including a mention of the Disney Institute's emphasis on personal interaction. Reflecting on Life's Milestones (00:37:21) Jeremy reflects on life beyond 50, the legacy he aims to leave, and the importance of capturing special moments with loved ones.
      Thanks to our Partner, NAPA Auto Care Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -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    
      Click to go to the Podcast on Remarkable Results Radio


  • nptrb

    Understanding S-Corp Distributions and Draws | Are They Taxable?

    By nptrb, in Automotive Industry,

    0 comments 791 views
    nptrb

    Spring Clean Your Finances: 5 Steps Every Business Should Take

    By nptrb, in Automotive Industry,

    1 comment 566 views
    nptrb

    Tax Season Preparation: A Comprehensive Guide

    By nptrb, in Automotive Industry,

    1 comment 682 views

  • Our Sponsors

Main Sections

More Sections

Discussion Forums

×
×
  • Create New...