Car Dealer Insider Mar 1, 2006
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Car Dealer Insider Mar 1, 2006

Fixed Coverage Tips for motivating hourly techs with performance summaries

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Fixed coverage Tips for motivating hourly techs with performance summaries

The beauty of the flat-rate system is that the system itself is the motivator for technicians to turn more hours. Flag more hours and you earn more. So how do some shops cope when they have hourly or salaried technicians? This is a bigger challenge, it seems, if you are migrating off the flat-rate system; Once motivated techs suddenly realize that slow work and fast work pay the same wage.

Here's a case study in which we'll examine a shop that is facing that very problem. In this situation we are working with a Ford store that pays its eight technicians straight time at rates that range from $18 to $24 per hour.

Quality was the problem This store tried a number of other incentives to get better production from the techs. They even tried hiking the technicians' pay rates by 50 cents an hour when they hit a benchmark (in the shop's case it was 45 hours, which equaled 100 percent efficiency for the hours the shop was open.)

Unfortunately, that didn't work as well as planned. Once the techs caught on to the system, they picked up too... (192 of 769 words)

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