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Hello everyone, My top tech came up to me asking for a review at the end of the year which was fine. I am curious to what you guys are paying/how your paying your top techs. Mine is making $36 an hour and 40 hours a week. he makes same pay every week. But I don't not give him any health insurance. I give him a week vacation paid. Is this average ? or high ? please let me know thanks guys !

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$36/hr is way above the average in our market as well. I would think even in the city, $36 would be on the high end of the spectrum? People tend to be creatures of habit though and I would assume everyone, no matter how much they make, will feel as though they deserve an increase in pay as the months/years go on. We were lucky in the fact that our top tech actually started much lower than what he actually deserves in terms of knowledge and productivity. We were obviously quick to raise his hourly rate once we saw him work and have since outright paid for his health insurance as well. We now give him yearly bonuses based on his production. This way helps us by now raising his hourly rate but rewarding him for his past production.

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I was just thinking of what type if pay plan I could do. Something like over certain amount of hours pay him different hourly rate or what not. What type of pay plan is everyone else doing? I have only been in business for about two years I opened up my own shop after being a dealer tech for 12 years so this is all new to me.

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I feel as though that's what a top tech would be making at a car dealer. When I was working for the Lincoln dealer before I opened my own shop, I was taking home about 1,000 a week. That was flat rate so my hours were much more than 40 but it was still my weekly pay.

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I feel as though that's what a top tech would be making at a car dealer. When I was working for the Lincoln dealer before I opened my own shop, I was taking home about 1,000 a week. That was flat rate so my hours were much more than 40 but it was still my weekly pay.

Feel like that's pretty high in the current market. There was a great pay plan in ratchet and wrench a while back http://www.ratchetandwrench.com/RatchetWrench/April-2014/Selecting-a-Technician-Pay-Plan/

 

Sent from my SCH-I605 using Tapatalk

 

 

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Kinda sad that everyone thinks $74k/ year is way too much....

 

How is the techs productivity? His efficiency? How many billable hours does he do vs what's available?

 

A tech shouldn't cost you money at all. If you set it up right, the more he makes, the more your making off of him.

 

Seems everyone thinks he should make $900 before taxes and be happy with that. Even it he is producing 65 billable hours a week consecutively?

 

If you can't afford to give him more, you need to increase your car count or efficiency which wouldn't hurt your bottom line. Also maybe overhaul your pay plan that if they shop hits your goals he gets bumped, that way your not just giving him more money because he shows up.

 

Figure what you want to make then tell him he needs to make it happen. It's your job to give him the tools to make it a reachable goal, make sure your shop is productive, and make sure he's the right guy.

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Seems really high to me. I guess it all boils down to how much does he earn for you? Overpaying and then compensating by working faster seems like a bad plan. Maybe put him on flat rate or bonus plan then its a win for both of you. I pay hourly plus bonus. I also pay more than my competitors.

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We use a base hourly rate plus a flag rate. For example ; $10.00 per hour worked, time and one half over 40 hours.Then $10.00 per flagged hour up to 34.9 hours, $1.00 bump per hour back to the first hour when they reach 35 hours,another $1.00 at 40 hours and anther $1.00 at 45 hours.

You can set the base rate and flag rates to suit the techs level of experience. You can also just give raises on what they flag, change the points at when the increases kick in based on your shops efficiency and volume. You could even put your lube tech/ Gs tech on this plan.

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      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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