Incentives

[Sonny]

I appreciate all the other thoughts on a flat rate shop. I know that in the facility i am in, we are averaging about an 82 CSI & an effective labor rate of approx $70 @ a $78 FLH. I think that is pretty good.

As a service manager, you should be monitoring comebacks & a techs effect on CSI & taking whatever action needs to be taken.

Sonny

[Old Irish]

Lot's of good points mentioned....and I agree with all or most of them.

I particularly agree that flat-rate (or any other pay type/pay plan) cannot replace proper management. I've learned that, and am still learning that, the hard way.

A few quick thoughts in random order....I could spend hours on the subject but I don't have the strength

I just think that flat rate is becoming less and less appropriate for the type of repairs we are seeing these days....and you all know what I mean. Cars ain't the same.....

The techs' bickering over flat rate (either "I don't get any gravy" or "The book must be wrong") has been a thorn in my side for too many years.

Accountability: nowadays, with so much difficult diagnosis, it can be difficult clearly defining a "comeback" and holding a tech strictly accountable---obvious workmanship errors aside, of course.

Even if you are paying guys "on the clock", any production-based incentives will very possibilty yield the same negative results that flat-rate does.....more speed, less quality.

With any pay plan you have to depend, to a large degree, on the work ethic and integrity of each individual tech. Right now I've assembled a pretty good crew and I'm trying to cultivate good attitudes, good ethics and good morale. I want guys who will work hard, be productive, do the job properly, and be honest.... NOT just because they get some sort of reward but because it's the right thing to do and that's what's expected of a good employee.

I've got a number of great techs----"great" not because of what they flag every day but "great" becuase they are super employees. Often they struggle with flat rate and I help them along a bit. My "shop ticket" is a bit more than I'd really like but, you know what? the trade-off is worth it.

I'm putting the finishing touches on a long term tech incentive plan that rewards them for many different things----training, attendance, lack of comebacks, CSI, years of service, etc. Yes, I have a "production" element in there, too, but it is only one small portion of the deal.

Anyhow, my idea here is to grow and keep some great employees with the anticipation that they will be productive. Gawd, I hope I'm right.....

Frankly, guys, I'm just getting old and jaded. I have grown very weary of battling with the super-star prima donnas who can fill up a flag sheet like nobody's business but leave a trail of problems in their wake. I'm tired of trying to hit some "magic number" like 125% shop efficiency but ending up with lousy workmanship and stressed, cranky employees. I'm tired of spending 5 years training a bright, enthusiastic kid only to have him leave the business entirely because he's tired of wondering if he'll ever get enough "30K Services" this pay period.

No. Gimme some good guys who *want to do a good job*, who can be team players, who have not become calculating and jaded (as I have)....give me a well balanced crew and I think the long term pay off will be much greater.

My dealer has no objections to pay plan alternatives. For that I am most grateful, as it open many doors.

Wish me luck........

Cheers
DD

[scotstrong]

One of the more creative incentives I have seen (and this would probably work regardless of flat rate or hourly) was to put 25 cents for every hour turned into a "fund" for each tech. At year end, this was paid out as a "productivity / loyalty" bonus. Employee had to be continuously employed through 12/31 to receive the bonus. If a tech left or was "dismissed", the fund for that employee is forfeited back to the dealership. Once other techs see the size of some of the checks the more productive techs get early in January, the interest in managing one's own productivity suddenly increases; not to mention a lot fewer 4th quarter "ship jumpers".

Scot Strong