Maylan Newton
Forum Replies Created
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I hear a lot of people say this and to be perfectly honest with you I used to think this. But as I experienced more and more different repair shops, I realized that the problem does not lie entirely upon our employees. It was me. As owners’ managers and leaders have created this environment of constant and never-ending supervision.
Sometimes as our hiring process, we don’t invest in them well enough to know what they’re capable of working independently and making decisions.
In most cases is our need as the leaders owners’ and managers to have full control over how things are done in our shop that created this problem. I cannot tell you the number of times I heard from owners they didn’t do it my way. Of course, they’re not doing it your way there are totally different people with different levels of experience education, and history. I think this really boils down to a couple of not-so-simple things.
No expectations. We hire people and we don’t set expectations, we don’t tell them what success looks like. So, they wander around our businesses doing what they think is right until we get frustrated with them and tell them they’re doing it wrong. 1 of the things that I’ve adapted when I hire somebody is to set expectations service writers what numbers are they going to be held accountable for, with technicians is what production looks like as far as hours worked and hours on site.
But really boils down to this if the customers are happy, the employees are happy and we made a profit, legally and ethically and morally is there a wrong way?
Teacher employees how to make good decisions show them what that looks like (expectations) and then let them do their job even if it’s different than the way you would do it. If the expectations are met there’s no wrong way of doing it.
Stop making every decision for your employees! When they ask you what they should do the response should be what you think you should do. If it doesn’t give us the expectations, we want then I would say something along the lines of having thought about this or did you think about doing this share with them how you would handle it in other words teach them different ways.
All decisions are made with 2 basic bits of knowledge.
1 the knowledge of the situation. What happened. 2 their experience level, how long they have done the job how many experiences that they had in making decisions.
I think this is more prevalent today because parents cannot allow their kids to ever make a decision. So, they go into the real world not knowing how to make a decision and never experiencing anything. Don’t continue this in your business. Yes, they will make mistakes, I call that tuition is a price you pay for education. The make the same mistakes over and over again they’re not learning the wrong person eliminate them from your business. But if the growing and learning that’s a good thing.
In most cases your employees don’t want you telling them what to do every time that they’re terrified of making their own decisions or making a choice because of your reaction to it. Set the expectations teach and share your experiences to make them better decision-makers and you might be surprised.
Most people in our industry do not start a business with the idea that they’re not going to be there every single day. In fact, they created a job for themselves. Alter your mindset to create a business that you do not have to be at. They provide you with passive income if you show up one day or no days. And I have a business like that means that you will not need anyone to be a caretaker or babysitter.
By the way your employees here you referred to yourself as a babysitter or caretaker, you are doing a great deal of damage to the relationship, they will not be long-term and plot employees in my opinion. I have a business that requires me to trust my staff and employees. Without intervention. I give them the authority to make decisions to make sure that will happen. If they haven’t fulfilled the minimum expectations of happy clients, happy staff, and profits, then we have a conversation about it. If they don’t learn, then I must plan to continue to teach or replace them.
It’s your business and to be perfectly honest with you the good in the bad it is your fault. You hired them, you train or didn’t train them, and you probably didn’t set expectations and hold them accountable to those expectations. So maybe the real question is who’s babysitting you?
I experienced this firsthand when I was out of my company for 6 months. Absolutely nothing to do with the company operation for 6 months. And during those 6 months, the company not only maintained its client base but grew. All our commitments were met the basics of happy clients, and happy staff and the company made a profit. In fact, during the six-month period, it paid for my daughter’s wedding while I was in the hospital. If you were out of your business for 6 months or longer what would your business, look like? For many it probably would not still be open. Think about that and stop the daycare and babysitting and grow employees to keep the business alive not for you, but for your family in case you can’t go to work someday.
Just my humble opinion
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[postquote quote=120764]
we as an industry need a nationwide apprentice program. as an industry, we cannot continue to lose these people to the other trades. we are so behind the other trades in recruiting young people into the industry.
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I think we do have tendencies to make some things complex. The 1st thing I want to say is to make sure your base or lowest hourly rate is determined by your true actual cost of doing business. You should not be concerned with what anybody else is charging; your rate needs to be based on what your true actual cost is.
one of the concepts we teach in our Service Advisors School is you should have multiple labor rates, and I am an advocate of approximately 5 different labor rates. This allows you to be more competitive on the less complex, less difficult, and higher comeback jobs but charge more for the complex or the difficult to do jobs. Most labor rate guides, please remember it is only a guide, and it is wrong in many, many cases. Most guides Actually have a skill level attached to labor operation, typically A, B, or C. If you are using the computer system for your time, this skill level option that may be turned off.
Base labor rate determined by your cost of doing business this is for your normal service work, and some of the most common jobs we do basic brake jobs, oil services, timing belts, water pumps. In the labor guide, these would be classified as C jobs.
2nd labor rate is 10% higher than your base rate is for doing more complex repairs typically listed in your labor guide as the B class jobs. For example, of this would be higher-tech, repairs intake manifold and late-model vehicle, ABS brakes system repairs virtually every repair done in a computer-controlled vehicle.
3rd labor rate is for the diagnosis, inspection, and some of the repairs on any computer-controlled, pneumatically controlled, hydraulically controlled system. This labor rate should be a minimum of 20% higher than your base rate, if not more. This rate helps offset the extra pay for the qualified technician, tools and equipment they need, and the information they need to repair the car correctly. All of which the shop pays for.
The 4th labor rate I have is for larger trucks three-quarter-ton or above. These are just more difficult to work on take up more space, so I charge a little more for them.
My 5th labor rate would be for things like Chassis work on motorhomes, trailers, etc., and if you do coachwork (inside the motorhome), I would have a sixth-rate for that work.
Just clearly define what each labor rate would be used for and implement a policy for this. The 2nd thing that I did consistently was I took whatever book time was increased it by 20% before I applied to multiple labor rate to it. I found this worked very well. Also, some of your computer systems will automatically increase the hours listed in your computer system for that 20% bump; make sure you use your computerized information and repair order systems to their maximum.
Not as simple as some of us would like, but unfortunately today’s complex vehicles require us to have a slightly less complex method of getting paid properly.
The good thing about multiple labor rates is you can do some of the lower skill level jobs at a more competitive rate, but when you tackle that high-tech drivability complaint it has been all over town, you get a little more labor for your effort to have the training, the tools and the knowledge to fix the car.
I think 1 of our industry’s largest problems is we do not get paid for the knowledge we have, just for using our hands! And that needs to change.
Whatever you decide to do, make sure this policy is in writing, so the employees are very clear about the shop’s pricing structure. It will take a very short time before it becomes 2nd nature and you will reap the benefits.
The most important thing about labor rates is to make sure they all start with the base rate being calculated by your actual cost of doing business, not a fictitious/number. Then add to that base rate based upon the skill level required; my examples above are just that examples in fact maybe you should consider them to be minimums.
I welcome your comments if you like to reach out directly to me to talk about this, I’m always available. Remember we need to get paid for what we know, not what we do!
Maylan Newton maylan@esiseminars.com
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I have experienced more than one of these types of customers. One was in F3 50 truck that the gentleman used the floor as a spittoon and it literally dripped tobacco out the door sills. The other end was an Industrial Meat Salesperson who had rotted meat in his car. the boxes of meat had swelled up to 4 or 5 times their normal size and both he and the car smelled like death.
I took both of them aside and explained to them that we would no longer be able to work on their cars unless they came and clean sanitized and safe for my employees to work on. Both of them seem to be surprised that we are having that conversation because they were so used to the smell and condition of the vehicle they overlooked it. Many people who have disorders don’t notice what they’re living in. But I refuse to put not only my employees but also my customers at risk to service one or 2 vehicles. you’re much better off letting them go in a polite and professional manner. you can offer to get them help through the church or local agencies but in the end, they have to want help and most do not. -
Olie this is something that we do at educational seminars Institute. Send me an email and we’ll schedule time to talk maylan@esiseminars.com or if you going to be at vision in Overland Park. We can talk face-to-face. I will also be at the automotive training Expo in Seattle, Washington.
I look forward to speaking with you.
Our website is http://www.esiseminars.com.
Please let me know if you have any questions
