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Not every shop pays flat rate; for many reasons. So, many techs are on hourly pay. There is nothing wrong with hourly pay, as long as you have an incentive program in place that promotes high production levels to avoid complacency. For hourly paid employees I strongly urge you to have a pay plan that rewards production levels on a sliding scale. As a business coach, I have seen too many times shops with low production levels and high tech payroll due to overtime pay. Overtime pay must not be used to get the jobs done with no regard to labor production. Limit overtime and create a strategy that increases production and rewards techs with production bonuses. By the way, there are many ways to incentivize techs, it's not all about money. Overtime without high levels of production will eat into profits and if not controlled, with kill your business. If your shop is an hourly paid shop, what incentives do you have in place to maintain production levels?
There has been a lot of controversy recently with flat rate pay plans. Below is a link to an article about a technician's strike that was held in Chicago. Although the strike and issues in the article centered around dealerships, the article brought up good points about flat rate pay, and the low hourly pay many techs receive. It points to reasons why many techs are unhappy, leaving the industry and why we have issues attracting quality people to our industry. I don't want to start a firestorm, and there are many forms of flat rate pay...but, is it time to rethink flat rate pay plans? And also, we really need to compensate our employees at a standard that is in line with the training, the tools that are required and skills needed these days. I think it is worth your while to read the article and start a conversation on this topic. http://www.autonews.com/article/20171023/RETAIL05/171029996/