ASM pay plans

[gravlguts]

i have a senior advisor who's main function is to coordinate internals and handle warranty. he is currently paid a small base, with bonus on internals & all warranty. the problem is that he doesn't feel it is fair that he should deal with customers when he isn't bonused on cp work. he's a long term, caring employee who really knows his stuff.
we are thinking of changing his title to assistant service manager along with a different pay structure. we don't want to increase his pay, just re-allocate it to change his focus.
any suggestions?

[robc]

There's nothing wrong with working backwards as you descibed - what should this person earn, what are his roles, and then what should each pay to equal the desired salary.

Since the person is an ASM, they should be paid similar to a SM - base plus % of net is the most typical. The only thing in your situation is if the person still must maintain their hour/ro count from the internals and warranty in which case you might need to add that either as a secondary % or a bonus when production thresholds are met.


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** Rob, Editor WD&S **
Help is only a message post away!
robc@dealersedge.com

[Mike Vogel]

I have an Asst Manager that is in similar capacity. She handles all used car work, PDI's, Due Bills, and assists me in management duties such as payroll, customer handling, etc. when needed. She also fills in if an advisor is out sick,vacation,school.
Her pay plan consists of a base salary, small percentage on internal/pdi labor and small percentage of net profit. I also pay her on customer pay labor she writes while filling in, but that is a very small %. Works great, she is very motivated and things run very smoothly.

[Rotnjonny]

Your dilema is not uncommon. By having a salary as part of the pay plan, the pay plan will not become a tracking expense. Tracking expenses are expenses that go up (and down) as the sales go up and down. The pay plan should compensate for the performance that the person puts forth. Since the production of billable labor hours is what drives the service department, why not give this person a salary and a rate (like $1.00 per) for every billable flat rate hour that is produced. (CP, Warranty and Internal) That way they have an incentive to assist any where needed.

[juzcruzn]

gravelguts - how about you cut the crap and pay this "long term-valued" employee what he/she is worth. dealing with customers sucks-period. I did it for too long before getting out. If he has to handle customers and is not getting paid accordingly - you should be lucky he's long term - its obvious you take his loyalty for-granted.

[partsmandean]

While I may not be as eloquent as juzcruzn was in his assessment, I would have to agree with him wholeheartedly. Why have we become so uncaring as to employee's feelings? You're basically saying that you're going to appease this individual with a title and a change in pay structure whereby he'll continue to draw the same salary. Only difference is that now he'll feel like he's getting paid for the added responsibility because you've given him a better title. Hmmm, I had the same thing happen to me years ago when I was given the title of "Assistant Service Manager / Warranty Coordinator". I agree with juzcruzn when he states, "pay the individual what they're worth"! If they have been long term, caring and knowledgable to boot, that should be worth investigating his concerns about any responsibility that has been added to his employment venture with your company.

[DaleH]

Customers should not come first - employees come first. If this person is a long term loyal employee, and has been doing a good job ... THEN YOU NEED TO STEP UP AND PAY HIM FOR IT. PERIOD. Otherwise - you may soon be doing his job too, or will have to get someone else that may not be as good.

If you don't want to pay him more - how about giving me his name and phone number... 'cause I'm looking for people like that for our dealership - and this dealership VALUES employees and pays well for them!

[johncd]

I have to agree with the growing feeling of "you get what you pay for". Hard working loyal employees are hard to find and if he is doing more work and you want him to handle customers then you will have to pay him. People should be paid for what they effect and can effect. To re-allocate his pay to change his focus would only work if you reduced some of his other duties.
Bottom line........pay the guy what he's worth!