Automotive & HD Business Management Articles.
Bob Greenwood. October 18, 2012. ( over 5 years ago ) 609 views
We hear over and over about shop owners trying to figure out a bonus plan for their techs to make more money.
Please consider this. Today’s Professional shop environment requires a diverse depth of talent from not only the technician level in the back, but also at the front counter and the
Administration office levels as well. Today’s environment demands a TEAM to be formed working within a culture that thinks and acts with the client’s best interest at all times.
That being said, a “bonus” concept forces the “me” mind-set as “I” will win when “I” get a bonus for performing work “fast”. Ever notice under a bonus concept, the fast tech does not always share his knowledge or “tricks” he has learned with apprentices or other techs? Ever notice under a bonus program that some techs start to demand only certain “jobs” that he can “beat the clock” so “he” can win? Ever notice under a bonus plan there is more “conflict” within the business?
This old format is totally out of touch with the consumer today… the person who really pays us.
Today’s Professional environment has in place a proper staff Profit Sharing plan. When this plan is put together properly, it measures and rewards the TEAM for its performance. It is put together utilizing the shops site efficiency number (not proficiency—which is individual performance used for individual counseling). Site efficiency measures a team’s ability to perform together based on their combined competencies and a shop should always be striving to reach 75% to 80% site efficiency. Under a Profit Sharing Plan, everyone is paid individually for their “competency” that they bring to the shop, but everyone is paid equally in Profit Sharing. This encourages individuals to continue to improve their skills. Their individual pay will reflect their progress and the Profit Sharing encourages TEAM work on behalf of the client. The results—staff communication is improved substantially and the client experience moves up on the CSI (customer service index) scores.
That’s the right plan to move your business to a higher, more productive, more profitable level. Revisit your thinking, do the math and enroll in a course that teaches you how a Profit Sharing plan could be put together in your business.