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Posted

I was wondering what policy shops are using for side work? I know of a shop that is losing its lead tech because he is going into business for himself. Can't fault someone for trying to better themselves, right? Then I got the rest of the story. You see this tech has been doing a great deal of side work. For example it was recently discovered the shop he works for has lost more than a few clients to him. This tech has also been enlisting the help of a junior tech from the same shop to work in the evenings for cash. Needless to say those two are under producing at the shop during the day. I get a tech helping out family and friends, but to me this guy is poaching customers and has become toxic to the shop.

Posted

I don't know about anyone's policies, but that situation is 100% wrong. The shop owner should have dealt with that a long time ago.

The minute that tech's productivity started dropping OR he poached a single customer from the shop, he should have been written up for time theft, if not fired on the spot (depending on his attitude).

 

There's a segment of the population who never goes to a shop, always using their buddies who work out of garages, which will never be a shop customer.

These customers should not be viewed as poached, as they wouldn't come to the shop anyways.

But a paying customer who gets stolen? That's almost grounds for a conflict of interest lawsuit I'd say.

 

Looking from the tech's perspective, I think he's in for a rude awakening when he opens his own shop and realizes all the expenses he's got to cover.

  • Like 1
Posted

I allow my techs to work on side jobs at my shop. It is somewhat of a perk of employment. We work on German Cars so almost all of the vehicles are non german cars and as bstewart said these are the bottom barrel customers or friend of the techs. I know exactly what he charges as he asks me what is fair LOL and he knows as well as I do that the amount he charges to do work he could never ever open his own shop.

 

I will say that everyone's situation is different HOWEVER if I were open another shop from scratch I would institute a policy of no side work at the shop. Personal vehicles and family members I can deal with.

  • Like 1
Posted

mspec,

I've thought about a situation like yours, but I couldn't think of a feasible way to make it work.

When it comes down to it, they're using your power, your lifts, your compressor, etc etc.

It might not add up to much, but what if a lift or the compressor breaks while they are using it on their time?

What if it was somehow due to their negligence? Would they pay to fix it?

 

Plus, I felt that a bigger issue was insurance. If they are doing side work and get injured or killed, would your insurance cover it?

If not, you could be personally liable for their injury/death. Especially if they are working alone after everyone leaves.

 

Another thing shop related where the risk outweigh the rewards (there's actually no rewards for this, except employee goodwill I suppose)

  • Like 1
Posted

mspec,

I've thought about a situation like yours, but I couldn't think of a feasible way to make it work.

When it comes down to it, they're using your power, your lifts, your compressor, etc etc.

It might not add up to much, but what if a lift or the compressor breaks while they are using it on their time?

What if it was somehow due to their negligence? Would they pay to fix it?

 

Plus, I felt that a bigger issue was insurance. If they are doing side work and get injured or killed, would your insurance cover it?

If not, you could be personally liable for their injury/death. Especially if they are working alone after everyone leaves.

 

Another thing shop related where the risk outweigh the rewards (there's actually no rewards for this, except employee goodwill I suppose)

 

 

I can certainly see your point and it is absolutely valid. Unfortunately its not something I am wiling to pull from my techs at this time personally. I wouldn't advise anyone to allow side work to go on for their own shop though.

Posted

Allowing side work has always been part of our hiring policy, as long as they don't work on BMWs or Minis. Unless they are family members vehicles. Our insurance will cover it if anything happens after hours. We trust our techs to be safe at all times while here.

Posted

I don't allow side work. My lead tech can use the shop after hours for his cars and his family as a perk. He has a key. It has worked out well, he pays for the parts and I'm not involved in any way. He uses the shop so infrequently after hours its a non issue. I wouldn't charge his wife labor for an oil change anyway. His aunts and uncles come in and get treated like any other customer. Stealing customers is bad bad bad in every way, if I had to compete on price with my tech being the competitor he'd be sent down the road instantly.

 

Its too lucrative a proposition to allow a tech to make $75/hr profit using your resources. He can sell parts at cost and still make a profit because there's no overhead (out of his pocket). I suppose if your not paying the guy enough its a way to keep him but even still its a bad road to be on. Let your guy go so he can open his own place if he wants to be the boss.

  • Like 1
Posted

Personal vehicles only, and that grudgingly. I'm most at ease when my shop is locked up and nobody is there. I have very expensive coverage for injury, fire, etc. under normal circumstances. why increase the risk?

Posted

Great observations all around. Bstewart is spot on that this should have been dealt with a long time ago. The shop owner talks a good game, but he will tell you he avoids confrontation. I personally think side work is fine for family, and even friends. However if side work morphs into an income stream for the technician, that's where the line is crossed. Then he no longer holds the job as a primary obligation and crosses over into being your competition. The challenge is crafting a company policy that make it clear and definitive.

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  • Have you checked out Joe's Latest Blog?

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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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