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Why Not Give a Tech a Pay Guarantee?

Joe Marconi

By Joe Marconi
in Human Resources, Employees

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  • Joe Marconi changed the title to Why Not Give a Tech a Pay Guarantee?
weighit Enthusiast

weighit

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I was a service writer at a Mercedes dealer years ago, the pay plan there was the light line techs were given a 40 hour pay, even if they failed to flag that amount of hours, the next tier was set a 45 and the heavy techs were set at 50 hours pay. The owner was a nice fellow and wanted each employee to want to come to work, but also wanted zero, none, no comebacks. His thoughts were if your sure your going to at least flag 40 hours there was no reason for any short cuts, rushed jobs and the possiblily to cause a comeback. that just ticked off the customer and made the dealer look bad. I have to say the entire service department worked extremely well and everyone seemed interested in doing a good job. And that was back when labor rates were in the mid $60 per hour range. None of the other dealers in the "Motor Mall" did that and seemed a lot of the techs in those other dealers were always coming in applying for a job. We rarely had any turnover in our techs.

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weighit Enthusiast

weighit

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7 hours ago, Joe Marconi said:

A great strategy, based on culture!

Would you say that the technicians consistently produced the hours that were needed to maintain sales and profits? 

Oh yes, very few ever actually collected the guaranteed hours, but it was there as a security for the guys that really took the time to ensure quality work and not be penalized for the hard job or that one that kicks your butt. It made that whole service department seem to click like a well oiled machine. I liked working there. 

weighit Enthusiast

weighit

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Posted

I don't know now if that pay structure could/would work for the employee and the owner any more. But with some constructive discussion it might? 

  • 10 months later...

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's 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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