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Stagger your employee benefits


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Years back I would always prorate a new employee and make Jan 1 a new year for each employee with regard to benefits. That meant that when vacations got renewed, along with sick days, raises, etc., every benefit for all employees came due at the same time. For the past few years we have gone to policy of anniversary hire dates. It's more work to keep track, but it staggers the vacation time, sick time and other benefits you may offer.

 

What other policies are shop owners using?

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We stagger our benefits also, so as not to cause a huge expense if everyone gets paid vacation in the same month. I set the anniversary dates in my calendar so that i can automatically be reminded when the anniversaries occur. It also staggers out the employee reviews.

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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
      The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
      Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
      And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.  
      Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
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