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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-Call-to-action.png       Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com ARN-Website-Banner-July-2022-1200x400-1. Screenshot_340-1.png

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  • Have you checked out Joe's Latest Blog?

         0 comments
      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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