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What is Your Preferred Method of Paying a Technician?

Joe Marconi
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I pay flat rate with a punch time guarantee. Where I'm at, hourly employees get paid time and a half over 40 hours but flat rate employees can be paid just hourly rate times hours booked. This way the employee gets paid hourly with a "spiff" for booking over 40 and I don't have to pay time and a half. 

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2 hours ago, Joe Marconi said:

Aren't there overtime laws to consider even for flat rate. I have heard so much about the different changes to the laws. Just asking? 

I can't say I'm super versed in the law but I can say that most shops(including new car stores) are paying flat rate around here still, and they are not paying time and a half.

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Andre R Enthusiast

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We use Paychecks for our payroll service. Anytime we have any questions about what the state laws are for payroll we call them and they will tell us what the law is.

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26 minutes ago, Joe Marconi said:

The only reason I asked is because I have shop owner friends around the country, and I hear too many cases where the overtime laws are very confusing, even with flat rate.

When I had my shop I used an HR company (SESCO). They opened my eyes to a lot that I was doing wrong. One NOTE, my two shops were in New York, so that too makes a difference. 

I suppose I could look into it but I feel that if the new car stores are doing it this way, it should be fine. My tech is happy with this arrangement and It's kind of a moot point as he only works 40 hours a week anyway. There may come a time when I'll have to look more closely but this is working for now.

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    • 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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