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By Joe Marconi in Joe's Blog0 commentsThe 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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Anyway the short of it is the class is GREAT for those of you whom are always asking about marketing tips and what to do. Its also a good primer for a lot of the older owners that feel they don't have a connection with the millennial generation. There is a lot of really really good information in this class. I personally got a lot out of it and even for those whom have been exposed to a lot of this material its great to be exposed to it again. You probably haven't implemented everything you wanted to from other training classes or good ideas you've heard. This is like a shot of adrenaline to get your butt into gear to actually get some of those marketing initiatives started! Bogi is a great instructor and you can certainly tell her passion for the industry. Definitely aligns with my WHY (you'll learn about that in the class).
I highly recommend this class. I have no affiliation to WorldPac but I figured you guys would get a lot of value from it.
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By tirengolf
I was looking for some input into advertising. I have really not done any the last 25 years. We are rebranding or should I say changing directions a little. Going back to tires, brakes ,alignment and maintence. When I did it last other than the phone book we did a little newspaper. I think those have basically gone. So many options out there, I just do not want to throw a bunch of money away on the wrong advertising. Any help would surely be appreciated. Sincerely David
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Hey guys,
I recently opened my shop (2 months) I started with autoshop solutions, I got their customer website package and 300 of google adwords per month. The folks over aut AS told me before hand that it woudl take time for the SEO to mature and to start getting results from google etc. Well its been 3 months since the site has been up and I have yet to get ANYTHING from google or the internet in general. When I logged into my control panel and took a look at the keywords they set me up with they were completely unrelated ie. "transmission shop" when I specialize in European makes. Ive searched high and low and have other people search and when looking for bmw, mercedes, audi service Ive gotten as far back as the 9th page with nothing. Has anyone had a similar experience with AS? I have someone who has a proven record of SEO whom a fellow shop owner friend of mine uses and swears by that says he can get me on the 1-2 page in 60 days. Thoughts? I feel like I am throwing away 1100$ a month.
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By Transmission Repair
Get A Life
We sometimes get so buried in our day-to-day stuff, we often forget about promoting our business to keep us busy. Let's not confuse busyness with profitability. We juggle things at home and in our businesses.
In the early days, I would commit to a full-page Yellow Page ad. However, I would put an unlisted number in the ad to where if the full page ad didn't work out, I could simply cancel the number and not have to be responsible for the ad. The full page ad was $1,000/mo. OUCH!
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My mouse and keyboard suddenly gave me an infinite amount of power. I became my own internet promoting service. I felt better about every dollar I was spending because I was in control. It cost me nothing except for the ads themselves. There was no need to pay someone else $$$$ to do for me what I learned to do for myself. It was great.
I slowly learned the MORE I paid for Pay-Per-Click (PPC) advertising, the more business I would get. I eventually learned the ratio was 12-to-1. For every dollar I spend on PPC ads, I would get $12 worth of new business. Annual sales went from $700K to $1,2M seemingly overnight. And I was only spending about $50K/yr. for my advertising, all in. Spend $50K to get half a million more in business? I'm in.
I suddenly (2 years) went from a builder to a PPC expert. Anything to get me off the bench. 🙂 lol! I was simply getting older and was happy about the change. My advise is for you to do the change. I simply learned that rebuilding didn't pay near as well as well as running my internet PPC ads. It was simple 2nd grade math.
My best advice is to follow what I did. It will pay you ENORMOUSLY.
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