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This has been a topic discussed before, but since we have so many new members, I would like to hear from shop owners to see how they handle bonuses for this time of the year.

 

I know that many businesses, not just repair shops have reduced the amount of bonus, and some have cut it out. Due to recent tough recession.

 

Do you give a bonus as a percentage of regular pay?

Do you give a flat bonus based on years at the job?

Do you give a bonus in gifts, or tool gift certificates?

Do you give a bonus as part of a retirement contribution?

Do you factor in performance, quality, comebacks, etc?

Do you give a bonus at all?

 

Any other thoughts with regard to bonus?



Posted

The last shop I owned I would give a weeks average pay to each employee 2 weeks before Christmas as the bonus. This included overtime, actual weekly pay divided by 52 equaled their bonus. If we had a great year I explained through their hard work, attention to detail, looking out for the waste and not having any damage, they got a Bonus on the bonus and got 2 weeks average pay. It did not happen every year, but many. The years it didn't happen they all knew why, someone screwed up and it cost everyone. It helped me as they as a group wanted to keep eyes on anyone that might cause them to loose the added bonus. It came out of the net from the company profits, but I figured it kept turnover to a minimum, I hated to train new people. They made more money with me than any of the competition and actually made it easy for me when I needed to add personnel. Explaining the pay and the bonus program let them know how we paid up front and what they could expect. Worked for me. I had 6 employees and that shop 10 years when i sold it. My oldest employee had 9.7 years with me, and the newest hire full time had 6.5 years. The 2 part time employees were the ones that changed out every so often over those years, not the full time guys. This pay was on top of their vacation pay that was based on 40 hours base pay per week.

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  • 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.
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