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  • Technicians Pay

    Posted by grant on June 23, 2011 at 3:13 pm

    Hi Guys and Girls I am looking for a really innovative and exciting Techncian pay plan, any ideas please. We are UK based and the techs here work 40 hour weeks Mon-Fri, plus Saturdys on rota 4 hours a morning. Tried most of the normal methods, looking for something different.

    Cheers

    Grant

    grant replied 10 years, 11 months ago 4 Members · 8 Replies
  • 8 Replies
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  • phoskins

    Member
    July 7, 2011 at 8:59 pm

    Grant,

    We just started a new pay plan for our techs. We are a large shop with 9 techs, including our LOF tech. There is no more flat rate. They are paid hourly, which makes up about 75% of their pay. The rest of their salary is a bonus that is a percentage of the weekly labor sales. It is divided up based on their production & skill level. It is not about their potential but what they will produce.

  • grant

    Member
    July 8, 2011 at 6:53 am

    Hi Phillip Thank you for the reply, that is similar to how we are paying at present, hourly rate, time one third for overtime, time and one half for Saturdays and % of monthly targets met based on skill levels.

    Previously ran with time saved scheme but in this day of ever demanding customrs and shortened times we gave that up as CSI was affected.

    Kind regards

    Grant

  • J.P. Glenn

    Member
    July 12, 2011 at 6:26 pm

    I am at a point in my business where I HAVE to change the way my techs are paid. I have been strongly considering a pure percentage based pay with a guarnatee for slow weeks.

    What was suggested to me was a percentage on both parts and labor. I have been very aprehensive about pulling the trigger on the plan. We are a small shop (myself, 1 “A” tech, and 1 “B-C” tech) and do not always have a full schedule. But somehow they always seem to make the work last until closing time. I need serious help in motivating them to be alot more efficient. And I know that motivation will come from their paychecks.

    I do not want to go flat-rate. And I really like the idea of them making a decent paycheck when times are good, and also riding them out with me when things aren’t. I am blessed with overall steady work, but know these guys can do alot more.

    Any suggestions as to what works for others ( and what hasn’t!) would be greatly appreciated.

    J.P. Glenn

    Intercoasstal Auto Service

  • armel

    Member
    July 13, 2011 at 6:31 pm

    mr. grant,

    good day to you, i’m interested of the technician, i’m currently working in general motors dealer in saudi arabia as technician, it is possible to work with you?

  • grant

    Member
    July 14, 2011 at 6:53 am

    Hi Armel

    Thnak you for writing to ask about a suitable job vacancy with NMG, at present we do not have any suitable positions. Good Luck in your search for employment.

    Kind regards

    Grant

  • grant

    Member
    July 14, 2011 at 7:01 am

    Hi J P

    As you will have seen from my posts, I am also searching for that illusive pay plan, so I may not be the best person to help you, BUT…we employ 13 Techs plus an Apprentice and Quality Controller.

    I was paying a flat wage with a gurantee for any slow weeks so that they were always motivated. I then paid a ramped up bonus as a % of their individual base rates, this was experience linked and was based on hours sold/invoiced. On top of this I paid a gurantee overtime rate of time and one third and time and one half for Saturdays OR if their bonus levels were higher than the time plus rates, they were paid the higher bonus, so they had a win, win option.

    We then moved to team bonus (which I realise you can’t do with the 3 of you) but that stopped any arguements about who got the best/easy jobs etc.

    We are currnelty on flat wage, plus the two overtime bands as above, and they all now get a fixed percentage of the bottom line, again this percentage is based on the experience level, and or for example my gearbox and auto electrician enjoys a higher % as they have less opportunity to earn on the flat wage jobs.

    On top of these schemes, I have also added incentives for upsells and I was running a monthly competition called “Platinum Spanners” where the top tech for the month based on write-ups, work hours and first time fix received Snap On Tools vouchers, £100, £75, £25 for the top 3.

    It is always difficlut in these days of decreasing hours per job and tighter times, hence my search for something new and radical, so far it has eluded me….

    Hope this is of some interest.

    Kind regards

    Grant

  • J.P. Glenn

    Member
    July 15, 2011 at 4:37 pm

    Thanks Grant!

    I think using the percentage based plan I was thinking of is probably very similar to a team style system. I was actually advised to base it on total shop numbers, not individual. I really need everyone to work together well, and not fight for the better paying jobs. Being such a small shop, I am very busy doing a little bit of everything, I do not want payroll to be complicated!

    Why did you change from the team system? (or did you?)

    With the bonuses, how do you figure out hourly? What has worked for you?

    What are the bonuses based on? Labor and/or parts?

    I think I would be inclined to try a small hourly with large potential for bonuses, with the techs really needing to hit some of the bonus to survive. I really like the idea of paying great when the work is great and we all struggle a little when things aren’t. But, what I see most of the larger shops doing is the opposite.

    I know I can figure this out with the numbers I have, but every time a spend a few hours on an idea it doesn’t seem to work. Maybe tweaking someone elses plan will work better. Most of you guys have WAY more experience at this than me!

    Every bit of input sure does help!! Thanks again,

    J.P. Glenn

  • grant

    Member
    July 18, 2011 at 7:47 am

    Hi JP

    There are some differnces in terminolgy between the US and UK so I think we are talking about the same things. But in answer to your reply.

    The bonus is always based on total hours available to work and total hours sold, therefore we only pay on labour sales not parts sales to workshop staff.

    We stopped the team bonus as in our case we had too many terrorists within at that time who did not want to play a team game and they felt that they were carrying the weaker individuals (their words – lazy individuals), however to use a football analagy, you have to have your offense and your defense, so it was more a case of moaners.

    Sadly in the UK you can’t just fire people like you can in the States, something I discussed with the great American motivational speaker Dave Anderson, when he talked about Hiring Eagles and Firing Turkeys at NADA one year, if only we could. So we stopped the bonus and went back to individuals.

    So in our case, if a man is contracted to work 40 hours a week, we pay bonus on all hours over 36, ramped up to allow for his skills and or available hours.

    I do hope this helps.

    Reagrds

    Grant