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Kenny Rookie

Kenny

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Here is the problem I am facing in my shop. I have 2 techs that are father and son. The dad is paid 18 per hour and has only been doing the least possible lately and has complained about not making enough money. I would like to tell him he is lazy and that he don't deserve a raise. They both have a attitude problem when asked a question or blame the service writer for the car not being done. They seem to think that if they are working on a car that that's the job for the day and they shouldn't be bothered with walk ins or asked to look at another car. I am at my wits end with this and don't really know how to handle this with out cutting my own throat. I have ads out and been looking for replacements but no one worth calling back yet. Any ideas or suggestions would help.

mspecperformance Mentor

mspecperformance

Posted
Posted

Here is the problem I am facing in my shop. I have 2 techs that are father and son. The dad is paid 18 per hour and has only been doing the least possible lately and has complained about not making enough money. I would like to tell him he is lazy and that he don't deserve a raise. They both have a attitude problem when asked a question or blame the service writer for the car not being done. They seem to think that if they are working on a car that that's the job for the day and they shouldn't be bothered with walk ins or asked to look at another car. I am at my wits end with this and don't really know how to handle this with out cutting my own throat. I have ads out and been looking for replacements but no one worth calling back yet. Any ideas or suggestions would help.

 

 

I assume you have your techs on salary? If they are making flat rate there is absolutely no reason why they wouldn't want to work harder since there is a direct correlation to their pay. If they are on salary maybe you might want to switch it up to flat rate. Obviously there would be huge management and pricing infrastructure changes if you are currently not pushing 40+ hours a week per/tech.

 

Unfortunately it seems that your problem with 2 techs is that they are a package deal. If you get rid of 1, you have to get rid of both.

Kenny Rookie

Kenny

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I was thinking of going flat rate but I am not sure of what shop software to go with.

bstewart Collaborator

bstewart

Posted
Posted

IMO, I don't feel that flat rate is the best option to do "pay for production".

1. During slow times, your employees don't get a good paycheque. This can be very stressful and lower their efficiency even more.

2. It can also be stressful for workers because some jobs simply take full book time or longer, while some jobs can be finished in much less then book time. If an individual gets a string of "bad" jobs, they might get frustrated and feel that there is favoritism occurring.

3. It encourages workers to finish jobs faster just to get them out the door, with less regard to mistakes or doing a thorough job.

 

I feel that "hourly plus efficiency bonus" is a far better method to achieving "pay for production".

1. Your workers know what their hourly base pay is on (very) slow weeks, which can and do happen.

2. Because their pay isn't 100% based on production, it reduces the fighting over who gets the "easy" jobs.

3. Because it's hourly plus bonus, there is less incentive for your workers to rush jobs out, reducing the chance of mistakes and comebacks.

 

You can also make your bonus contingent on having 0 comebacks that week.

 

http://www.ratchetandwrench.com/RatchetWrench/June-2014/Finding-a-Better-Payment-Model/

http://www.ratchetandwrench.com/RatchetWrench/April-2014/Selecting-a-Technician-Pay-Plan/

http://www.autosphere.ca/carcarebusiness/2014/05/21/review-entire-shop-wages/

There's tons more resources available showing you how to set up an hourly + bonus pay structure.

Mario Collaborator

Mario

Posted
Posted

Flat rate is unethical in an independent in my opinion. Way to many makes and models being serviced, plus the vehicles are generally much older then what the dealer sees.

 

Talk to him maybe it's a shop problem, maybe it's his problem. See if you can straighten the ship.

mspecperformance Mentor

mspecperformance

Posted
Posted

hourly + efficiency is what I was really getting at. Straight flat rate is definitely a good way to starve a tech if you don't have enough consistent work and/or they aren't proficient at all cars that come through your shop.

 

If your shop is capable of flagging 40+ hours a week per tech, you can certainly guarantee them a certain amount of hours regardless of production (30,35,40?) and then give them a bonus for more hours logged. On the flip side there certainly should be a good policy on come back work so that your techs work hard to avoid that type of situation.

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Technician Shortage Is Our Fault, And It's Time We Own It
      By Joe Marconi in Joe's Blog
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      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.

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