Flat Rate VS Salary Debate [THA 289]

[carmcapriotto]

Are you doing flat rate, salary, or a hybrid model? What are the pros and cons of all three? My panel brings light to this hot topic from different perspectives. The consensus from the group is there is no cookie-cutter model on pay plans you must factor in your culture and your team.

Jeff Grassman, Carsmart Auto Service, Sumner, WA

Carlo Sabucco, Sil’s Complete Auto Care Centre, Oakville, ON. Carlo’s previous episodes HERE.

Dave Schedin, CompuTrek Automotive Management Systems. Dave’s previous episodes HERE

Key Talking Points

• Flat rate shouldn’t be used to fix problems
• A flat rate feels secure when there is a lot of work to be done, and there is tangible potential in front of them that they can get paid for. They fear when they don’t see the car count or have advisors who can’t sell and cater to presenting to “not get a no” from Mr. or Mrs. Jones.
• The hybrid model: performance-based pay. It has a base to lead those with hourly fear to feel a bit of security and the abundance reward that can be created from getting paid for producing more than 8 hours per day.
• All pay systems are good systems if the shop wins, the customer wins, and the employee wins.
• The mindset behind flat rate is “ a worker is worth their wages.” They have the opportunity to create an increase which is about an abundance mindset. This mindset motivates itself.
• The misconception that hourly is “safer” creates a scarcity or fear-based mindset. It always needs prodding to produce higher results at the level flat-rate can produce.
• “Shorten the racetrack” by investing in multiple tools 
• Get your techs excited about their efficiencies and quality of life
• Ask your employees what their ‘love language' is

 

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Important Books

Check out today's partners: Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com       Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com

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