TECHNICIAN PAY PLANS

[GM CHIC]

As we all are...we are trying to raise our c.s.i. scores. We visited a dealership in our area that had excellent scores and they contribute alot of it to the pay plan he has his techs on. He pays them a straight salary. Has anyone ever tried this? or have any variations to it? We have also thought about doing it with our team leaders only...any suggestions?

[slapenta]

Typically there is no relationship to achieving high CSI with technicians that are on a salary based compensation plan.

Excellent and poor CSI exist in both flat rate and salaried shops.

Excellent CSI and owner loyalty ratings come from service managers that implement "customer driven" processes and hold their employees "accountable" and "measure" their performance.

Any pay plan change becomes a sensitive issue and must be thought out very carefully.

Presenting a new pay plan to technicians is as important as implementing the new pay plan itself.

The technician's performance and historical income must be a key factor in determing any changes in pay plans.

Technicians must be held accountable to performance standards by definition of the terms Efficiency and Productivity.

Technician efficiency and productivity performance standards should make up the majority of the pay plan. Skill levels and CSI bonuses should also be considered.

Remember: Performance based pay plans.

Technician "time control" is the most effective way to improve the financial performace of a service department.


[This message has been edited by slapenta (edited 03-13-2002).]

[This message has been edited by slapenta (edited 04-03-2002).]

[fburrows]

I really agree with slapenta that pay plans are not the answer. As the manager you have to make sure that you constantly look after the customer. When you have to make a decision that can go either way make sure it goes the customers way. Taking care of your customers is a mindset that makes good business sense. I believe that you should not do anything for your CSI index. If you make taking care of the customer a priority for the whole shop, it will pay off in increased business and profits. And by the way your CSI will also go up, but dont do it for that reason.

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Frank Burrows
Automotive Business Solutions LLC
frank@autobusiness.org

[Chris Ames]

All of our techs are on flat rate.
They are more productive. A salary pay plan seem to have a drop in shop productivity.
We have a CSI bonus program for the techs.
based on their own CSI score compaired to the Dist. A precentage on their total dollars for that month and number of CSI samples. It has kept all the techs focused on their quailty of work.



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[jdaniel]

I agree, pay plans (or anything else) alone won't get you where you want to be. Pay is certainly a key component, but the environment you create is more important. I would caution you on two things:
1. You must hold your employees accountable for their performance, without losing sight of the fact that employee satisfaction is a prerequisite to real customer satisfation.
2. Satisfied customers are actually only one product of a well run business.
Some of the manufacturers' programs to ram CSI down our throats are counterproductive in the long term, making us downplay real profitability to earn the "big reward" that they hold out. They also make us slaves to the warranty customer.
Now for a specific idea: Through the years we occasionally had an hourly/salaried master-level tech in one of our shops. If you get the right person in the job the entire shop can benefit. Diagnostic skills are a key to the position. (I know this because at one time I held the position, and I still use the same skills designing and administering computer networks). The productivity I lost was made up several times over by the rest of the shop being relieved of many of the difficult jobs.


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Jack Daniel, MCSE+I, CCNA

[flyboy]

The previous posts are on track, and I have little to add... except....

I think the pay plans can have a very positive effect, if designed properly. What I have here is not a CSI bonus, but it equals approx half of the writers pay. I believe this is where CSI numbers ultimatly are going to be generated and will have the biggest impact. But the key, IMHO is the pay not being a bonus. Make it part of their pay. If they miss the mark, say the zone average or whatever you set, they loose a significant amount of money.

There is alot that goes into high CSI, and this is not the total answer, and as a manager I cannot neglect my responsibilties etc etc. However, this works for us, it has worked for me in other stores, maybe it would help you too.