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By Joe Marconi in Joe's Blog0 commentsIt 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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By bantar
I attended my first ever industry management conference. What a great experience. If you've never gone, I would encourage you to add it to your do-now bucket list. There was a lot of open and detailed sharing. For example, in a work session talking about bay efficiency analysis, they used real numbers from the audience. Monthly Overhead, Gross Profit Percentage, desired bottom line profit. It showed multiple paths to success that were immediately relatable.
None of the presentations were about perfection. As a matter of fact, most presenters shared information about how they did things stating that this may or may not apply to your situation. No one told you what to do, but rather offer tools for analyzing your own situation. None of the presenters were making sales pitches.
In other sessions, real shop owners share tips and techniques on a number of topics that we see here. Being a live event, these were more dynamic conversations.
I've returned from the conference with a renewed sense of urgency analyzing my numbers to see where we had success and where we need to improve. I do expect to make real changes, but don't yet know exactly what changes I'm going to make. Got to crunch some numbers first.
I signed up for the conference when it was first published, but sat on the CC screen for a while debating the value of this conference. Should I go, or should I stay? I reluctantly pushed the GO button. However, looking back, I should have enthusiastically smashed that GO button!
The next one is in Denver. I recommend that you consider attending.
A side benefit is that I got to meet Joe Marconi and in a session that we jointly attended, I overheard Joe say that he was mentored by Jerry Holcom. Later in the conference, I had the pleasure of talking with Jerry as well. In the many networking sessions, we met many different shop owners and had great conversations.
--brian
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By carmcapriotto
Thanks to our Partners, Shop Boss, and 360 Payments Recorded at the 2024 Automotive Aftermarket Retailers of Ontario (AARO) Business Management and Lindertech Training Tradeshow, Carlo Sabucco discusses the challenges of flat rate pay systems in the automotive repair industry, particularly for new technicians. He highlights the steep learning curve and unrealistic expectations associated with this pay structure. Carlos advocates for alternative compensation models, such as salary plus performance incentives, to better support technicians' growth and align with their personal and professional aspirations. Carlo Sabucco, Sil’s Complete Auto Care Centre, Oakville, ON. Carlo’s previous episodes HERE. Show Notes Watch Full Video Episode Automotive Aftermarket Retailers of Ontario (AARO): https://www.aaro.ca/ Discussion on Flat Rate Pay Systems (00:00:27) Discussing flat rate pay systems and their challenges in the automotive industry. Challenges for New Technicians (00:01:11) Difficulties faced by younger technicians under flat rate pay, emphasizing the learning curve. Alternative Pay Programs (00:03:09) Discussion on the need for alternative pay structures as some dealers move away from flat rate. Training and Continuous Changes (00:06:06) The impact of constant training and changes on technicians' performance under flat rate systems. Paying for Dreams, Not Just Jobs (00:06:22) Carlo advocates for a pay structure that supports employees' aspirations rather than just their job roles. Ethics and Speed in Flat Rate Systems (00:08:22) Concerns about ethical practices and the culture created by a focus on speed over quality in flat rate pay. The Need for Professionalism (00:09:23) The importance of professionalism and fair compensation in the automotive industry. Individual Pay Programs (00:10:23) Discussion on the necessity of tailoring pay programs to individual employee needs and dreams. Building Employees' Dreams (00:13:34) The importance of understanding and supporting employees' dreams to foster loyalty and performance.
Thanks to our Partners, Shop Boss and 360 Payments Shop Boss – Shop Management Software built by shop owners for shop owners. It works the way you need it to, right out of the box. Find on the web at https://shopboss.net Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections The Aftermarket Radio Network Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
This episode of Business by the Numbers is Part 3 (and the final part) of the 2024 benchmark series! What separates the most profitable auto repair shops from those struggling to turn a profit? Today, he's tackling that question using financial data and real-world insights from hundreds of shops across the industry. What you'll take away from this episode:
Understand what the top 10% of shops are doing right – and what the bottom 10% are doing wrong. Why labor productivity is actually the most important predictor of profitability. Why do understaffed shops often outperform overstaffed ones? How profitability peaks as a shop grows and optimizes, but also how maintaining that peak can be unsustainable. The ongoing debate on flat rate vs. hourly pay for technicians and service advisors, and how it impacts shop performance. Download the Benchmark Report for yourself and follow along! https://info.paarmelis.com/2024-automotive-industry-benchmark-report
Thanks to our partner, NAPA TRACS
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.com
Thanks to our partner, Promotive
It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: [email protected]
Download a Copy of My Books Here:
Wrenches to Write-Offs Your Perfect Shop
The Aftermarket Radio Network: https://aftermarketradionetwork.com/
Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion.
Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life.
Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.
The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level.
The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.
Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.
Click to go to the Podcast on Remarkable Results Radio
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By Changing The Industry
Unlocking Profits With Labor Rate Optimization #podcast #autorepairbusiness #podcastclips
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