Changing Tech wages from hourly to %

Honda Controller

Hi everyone :)

I was wondering if I can pick your brains lol.  We are still on hourly wages (I know lol) for our technicians HOWEVER, changing this to percentage rate based on performance and Factory training levels.

There is still a few questions that I am trying to get my head around and was thinking that you guys would be the right people to have the answers.

Hopefully I am not overthinking but this is the questions I have so far:

  1. Do you pay techs ONLY on closed RO's?  (i.e. if a tech is working on a warranty job and has to be left open for a week or longer for whatever reason, he only gets that time once it's complete?)
  2. Do you keep Apprentices on hourly rate as I'm thinking they can't produce until they reach a higher level, maybe 2nd or 3rd level?  Thinking of hourly for Apprentices until they are licensed, make sense?
  3. Since they are on a % rate basis, they will do their factory online training at home and when they need to be in-class, then they get a base hourly rate?
  4. If anyone uses PBS Aristo, what reports do you pull to have actual hrs/sold hrs?  Tech Payroll?
  5. Is it understood that techs will still clean their bays/shop, do hoist maintenance or even quickly assist a customer, or it's severely frowned upon?  lol  or do you have a lot attendant/car detailer to clean the bays and shop?
  6. Cost of an RO's labour; depending on the percentage they are at, cost of labour will never be 100% on RO since it will fluctuate.  How will the discrepancy of cost of labour be adjusted and is there even a way of tracking that?  Or do you simply put in their employee maintenance am average pourcentage that you know is close and leave it?
  7. How does % rate system affect your WIP account?

That's all I can think of right now.

Thanks in advance for helping me in any way you can, even if its for one question.

Honda Controller

Amanda Gordon

Great question, curious to see the responses. We have one in house tech that we pay hourly. Wish I could be of better assistance.

Craig Ness

We're a indy shop and run out techs flatrate.  They only get paid once the job is done. This gives them an incentive to wrap things up by the weekend. I do have a couple instances when we pay them before it's done but there are some rules with both understand. First is the job has to be over 8 hours. Second they have to have a  significant amount of it done. For instance if a engine job is done and all they have to do is wrap up a few things and testdrive it rather than rush I'll pay them 75% of the job. Our younger techs get a small hourly wage with the remainder based off the flatrate system. 

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