Quantcast
Jump to content

Recommended Posts

Posted

I get the benefits of flat rate pay, mainly increased productivity, but the downside seems to be rushing or cutting corners. I compare this to commission based sales people where the sale may be worth more than doing what's right.

 

Has anyone used any other pay structures for techs? I was thinking a salary plus bonus structure that mirrors goals/profits of the business. In the end of the day if they are billing a lot if hours but quality is compromised profits may be as well.

 

I am open to opinions as I am not in the field yet but I currently work for a company that this structure works well for



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
  • Available Subscriptions

  • Have you checked out Joe's Latest 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

    • By Transmission Repair
      Had our industry not had representative lobbyists in D.C., the same thing that happened to the American farmer would have happened to us.  Read what happened to the American farmers here:
       
    • By marxautocenter
      Hello all,
       
       I'm currently the General Manager of a pre-owned vehicle sales and service center. The business has a great reputation in the community, and has done well for 35 years. The current owners are ready to retire and enjoy a life of less responsibilities. They have deemed me fit to take control, and are helping me out by carrying the note, with a good down payment of course. We are still working on the nuts and bolts of the deal, and it has me thinking of all the avenues I could pursue in the future. Which leads to my question, should I continue to sell cars, or just focus on service? I know I'm not giving much information, but I'm looking to hear from other owners who may have experience on both ends, on some pros and cons. I know the 2 segments are symbiotic, as sales gives us future service work, and service has the option of offering vehicles for sale when a service customers vehicle is deemed not worth repairing. 
      The current numbers are skewed, as service gives a discounted rate to sales in the manner of 50 dollars per hour of labor, as opposed to the 134.77, and also parts are at cost. I am a numbers guy, and would like to make a decision on what would be most profitable, and I will have a better idea as we work over the reports.
      I'm just looking for opinions from knowledgeable folks. We don't have a master technician at the moment, so we struggle on diagnostics sometimes, and I would have to resolve that should I decide to remove sales from the equation. 
      Sales end is currently handled solely by one owner, other than myself talking to customers on the lot. We have a license now for 30 cars.
      Fenced in yard behind building capable of storing 40+ cars, with a front lot that displays the 30 vehicles for sale. 
      Great customer base, minimal advertising in the 35 years of business. ARO is 426.20 currently, and we average around 2000 RO's annually in the last 4-5 years. 
       
      I know I'm not providing enough information, but I can update when more becomes available.
       
      Thanks in advance!
       
       
       
       
    • By Changing The Industry
      Episode 199 - The Realities of Labor Rates and Technician Pay With Brandon Sloan
    • By Changing The Industry
      Why CPAs Aren't Doing Enough for Your Auto Shop
    • By Joe Marconi
      When we have low production, the first thing we often point to is the tech. But, is low production the fault of the tech in all cases?
      As a former shop owner, and now a business coach, I have learned through the years, that it take a team of the right people to attain high production levels. It also take effective service advisor skills, and charging he right labor times. 
      From your experience, what are the main drivers to attain high production levels, and the challenges? 
       


  • Our Sponsors

×
×
  • Create New...