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Technician Productivity


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Curious how others are keeping track of technician productivity. Is it something built into your shop management software that you are able to run a report on? Do you have a simple equation you run at the end of the week or month? Are you having guys punch a time clock? Do you even track productivity? If you do, do you mind sharing what your productivity numbers are? And do the fluctuate much?

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We use a product called Labor Profit Management. It tracks productivity and makes your techs aware of their performance. It also fulfills the requirement for a timekeeping system for wage and hour purposes.

 

Mark Anderton

First Landing Autocare

Virginia Beach

 

Thanks! I just briefly looked at their site, lots of great information to go back and review.

How easy is it to implement in your shop? Is it a hassle to get the techs to clock in and out? Do they tend to forget?

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  • 1 month later...

We use a product called Labor Profit Management. It tracks productivity and makes your techs aware of their performance. It also fulfills the requirement for a timekeeping system for wage and hour purposes.

 

Mark Anderton

First Landing Autocare

Virginia Beach

 

 

This looks like exactly what I am looking for however it seems pricey for what it is. As an add on management tool they are asking for $129+ a month and a set up fee. Thats on top of a shop management software you may pay for monthly or buy out right AND possibly other such management/profitability tools such as a digital inspection sheet service.

 

Does anyone know of a similar service that has a more affordable price point.

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This looks like exactly what I am looking for however it seems pricey for what it is. As an add on management tool they are asking for $129+ a month and a set up fee. Thats on top of a shop management software you may pay for monthly or buy out right AND possibly other such management/profitability tools such as a digital inspection sheet service.

 

Does anyone know of a similar service that has a more affordable price point.

^^^^Agreed. I would love to hear if others are using another system or method to track time

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We are using Auto Vitals "Smart Flow" for digital inspections and technician tracking. I know many of you are looking for a less expensive option, but I think you are looking at this wrong. These tools make you money, the do not cost you. Since we've implemented Auto Vitals our ARO is up $55. This has been an increase of over $3500 per week, $14,000 per month. I think I can afford the $200 to $300 per month that Auto Vitals charges for their product.

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Exactly right, Tires Too. These are tools that are supposed to provide a return on investment. First, it has to be a good tool, second, you have to commit to use them as they were intended. Labor profit management requires that you have techs punch in and out of each job, each break, etc to effectively track where their time is going. Used to its fullest, both you and techs see the inefficiencies in their day. If you can measure it, you can manage it.

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But in smaller shops say 1 or 2 bays those expenses can quickly get to be too much. Great option for a bigger shop with more than 2 employee's.

 

Sent from my SCH-I605 using Tapatalk

Agreed. If me and the other mechanic are sitting around with no work to do, it's hard to justify spending a hundred or two a month on software to tell me the obvious. Or if he is always taking a smoke break and chatting on the cell phone...

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Matt, you might want to look into a paper time clock then. Those can bemore cost efficient for the time being.

 

You should track idle time just as much as you should track billable time. You want to know where your hours are going. If your tech or you are not working on a vehicle then what are you doing? building maintenance? equipment maintenance? smoking? cell phone?

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Whatever you do, keep accurate attendance records (a formal system that requires employees to sign off on their hours) and pay overtime. Don't kid yourself into thinking there is some workaround for overtime. One angry employee filing a wage/hour complaint can make your life miserable and you are guilty until you prove you are innocent. We have put an amazing amount of time (and our coach's time) developing tech pay matrices that let us determine if a tech can work overtime and keep us within our labor margin targets. Hope I didn't spin this off topic.

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I believe I will be trying this program out. I am 95% there on jumping ship to Mitchell TeamWorks5 and Bolt On Technologies Mobile Manager. Everything looks pretty good as far as the Mitchell side goes, I think the only gripe I have is with the scheduler, hes pretty sucky LOL. This little time clock is expensive but I think its definitely something I am sorely lacking.

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  • Have you checked out Joe's Latest Blog?

         3 comments
      Got your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
      At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
      I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
      Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
      With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
      Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
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