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Technician Pay: Too Low Or Just Right?


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A recent stat from carMD states that car repair costs are up by 10%. The average auto repair job now costs $367.84. With this rise, some question; Has technician wages increased also? This is a very complicated issue and misleading if the details are not properly dissected.

 

The past few years have been a wild economic ride for businesses across the nation. And, not just the auto repair sector. In general, all businesses have seen their costs increase dramatically. For us, car parts cost more to purchase, insurance continues to escalate, workers compensation has gone up, utilities costs have gone up, on and on and on. All these factors add to a higher overall repair bills.

 

Now, what about technician pay? Is there a connection between higher repair bils to the consumer and technician pay? In the short answer; not really. We can debate this issue and compare auto technician pay to other industries, but the fact remains that technician pay is a part of the cost of doing business.

 

Tech pay can only go up, if there are enough profits generated. No company, no matter what the business is, can blinding raise payroll without understanding the true costs to running a business.

 

In other words, to pay a technician a certain rate or raise wages, the company must take into account the profit dollars produced. Until our industry collectively increases what we charge to the consumer, technician wages will reflect what we are able to pay.

 

Whats your take on this? Should tech wages be higher and how do you think we should achieve this?

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My goal is to have my master techs making half of the labor. I don't mind making less on the back end in order to have my employees lead good financially stable lives and I believe this will show in quality work and happy employees.

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  • Have you checked out Joe's Latest Blog?

         1 comment
      Have I got your attention? Great.
      Let me start by saying that I believe in giving praise when deserved and letting employees know when they dropped the ball. However, the truth is that no one enjoys being reprimanded or told they messed up.  
      The question is, what is the appropriate balance between the right amount of praise and the right amount of critical feedback? According to studies done by Harvard Business School, the ratio of praise to critical feedback should be about 6:1 – Six praises for every critical feedback. I am not sure if I agree with that.
      From personal experience, I would recommend a lot more praise. The exact ratio doesn’t matter. What’s important is that before you consider giving critical feedback, ensure you have given that employee a lot of recent praise. If not, whatever you are trying to get through to an employee, will fall on deaf ears.
      When you do have to give critical feedback, remember a few things:
      Focus on the issue or behavior; never attack the person, and remain calm in your actions and words Ask the employee for feedback, their side of the story Speak to the employee in private Address the issue soon after it happens; never wait Don’t rely on second-hand information; it’s always better if you have experienced the situation yourself that you want to correct Have an open discussion and find things that both of you can agree upon Have an action plan moving forward that the employee can take ownership of Use the experience as a learning tool Make sure you bring up positive attributes about them Remember, you don’t want the employee to be angry or upset with you; you want them to reflect on the situation and what can be improved. One last thing. Everyone makes mistakes. We need to be mindful of this.
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