Any service managers or ex service mangers?

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mopar56

mopar56

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I'm looking to put a proficiency bonus plan in place in my shop and would like to here from those who have used one in the past. Did you pay annual based on monthly average or pay monthly, if monthly how did you deal with work in progress etc? My shop is not flat rate BTW.
 
My experience from Motorcycle World, and I'm assuming you're running a car shop and not a sawmill or dildo factory:

Our bonus was done bi-weekly and paid monthly, always on Saturday. They can't call in or come in hungover if the shop is closed the day after. You like watching a service shop run half-staffed on the busiest days of the summer? Pay 'em extra on Friday.

The easiest way to do bonuses? Go to flat rate and wipe your *** with the rest of it. I say that because the easiest way to handle WIP is to get the flat-rate time, and figure their flag time. If you're going to that trouble....just go flat rate.

Do you track comebacks and yo-yo's? If you don't, you will be.
Do those go back to the guy that worked on them, or someone above them? The only way to impact the bonus is to make sure the original tech worked on it, and your customers will NOT like that. Stick it to the tech up the ladder, and they won't like it. Bonus both techs, and YOU won't like it.
Also, be prepared to have your customers talk about how un-thorough your shop is. It won't take long for your techs to figure out that if it isn't on the work order, it's not on the work order.
Note: Upselling is not on the work order.

How about your electrical diagnostics jobs/people? They're going to get screwed on this deal, for doing you the favor of taking on the hardest jobs in the shop.
The oil change and 10,000 mile service guys will love you. You'd think they were running concentration camps in their spare time, they'll be so efficient.

Get ready for the bitching. Oh. My. God. The bitching. You'll get one guy in the shop that can't accept that his poor performance is the reason he isn't living in a mansion surrounded by strawberry fields, and next thing you know, they'll all be wanting to unionize because you don't have hot Latina's offering blowjobs at the water fountain and didn't give them NASCAR pit crew jacks for airing up tires.

Also, do you own the shop or are you the service manager? If you're the owner, are you ready for the service manager to get fired? Because it won't take him long to figure out that the techs won't bother to look up flat rates, and you can't be bothered to run the numbers. Next thing you know, he's telling you that his techs are maxing out bonuses even when they're on the shitter, and he's telling the techs that they hit 80%. Guess where the 20% goes? Cookie!


Long story short, either pay them so poorly that they can't afford to feed their kids or afford new clothes or time off for job interviews, or pay them well, based on their skill level, training, and attention to detail. Then train your service advisors to route the work accordingly.


Side note related to above:
My shop once decided to have porters perform test-rides in order to keep the techs at their benches tech'ing more. I was still a tech and I protested the problem, explained that porters are not techs and don't know what the original issue was, aren't trained or paid to diagnose (or verify a repair), and often don't know when a car only has three wheels and a malfunctioning windshield wiper. Watch a true tech when he drives a car, any car...He's (or she's) diddling the wiper knob like it's going to college for liberal arts. He's noticing that the oil light isn't on when the engine is off. He's growling about shooting up a school because the mirror won't stay adjusted. Etc. etc. Techs have expectations. Porters have brain amoebas.

Techs loved the idea. More Bonuses!!!
Porters loved the idea. More joy rides!!!

The porters started test-riding the bikes and low and behold, our comeback rate went from 5% to 50% immediately. Well, all except mine.
Why?
I had told 'em they would have to fire me (because they threatened to), I'm not sending someone out on a bike I couldn't vouch for myself.

Guess who never got recognized for their zero-comeback rate?

That policy lasted three weeks.
 
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Jos51700, first, thankyou for your honesty with your insightful, informative, and humorous reply, I wasn't sure how much attention this thread would draw, I know it's probably not the right forum but with all the car guys on here I figured someone would have experience with this.so just a little more info for those reading this, my shop is none of the ones mentioned above, it's actually a marine shop but most the same principles apply except I can't really do a flat rate shop because unlike cars or bikes no two boats are the same. So every one poses a different challenge especially on inboard boats, that being said we do loosely follow a flat rate chart for maintenance like services and impellers etc. I am a shop owner but have two business partners, ( they are not techs ) they want to use a bonus plan, I'm not convinced it will work because of the dynamics of the shop and carry over jobs that happen every month, therefore one tech could have a amazing month say in April but March was a bomb because all the hours were carried over. This also leaves the shop with the issue of potentially paying out big bonuses for numbers that are not accurate. Your comment about paying on Saturday not Friday was funny and probably true, I am fortunate our techs neither drink or smoke so no worries there. I suggested to my business partners that if we go ahead we should pay monthly but they suggested a anual payout but based on a monthly average, the problem here is two low months could destroy a year plus possibly moral. So....I thought I would reach out to fellow members and see how they paid out if they were in the service manager role or got paid if they were a tech and see what they liked and disliked. Thanks again for your input or anyone else reading.
 
As a former shop Forman and service manager at a Dodge dealership in the late 80’s and early 90’s we did a weekly production incentive of $100.00 to the top producing shop mechanic.

It’s been awhile and time fades all the facts and details but it went to this effect.

We were a flat rate shop and the bonus was paid out on your total paid labor hours so it was level for all pay grades in the shop. The lube kid could mop up doing rotate and oil change with some upsell stuff like transmission service and such.

For In process work such as a transmission or engine rebuild or repair we would “credit” the time percentage wise to the mechanic. So say the job is a 20 hour flat rate job done 3/4 of the way through you would get 15 hours of the task.

We tried cash at the start but that causes a payroll issue of taxing the money, in the end we came up with a fake 100 dollar bill with Lee Iacocca’s face on it and hand that out weekly. We ran this for a few years, I don’t recall the end result but $100 dollar bill was pretty good at that time.

I still have one hanging in the back of my toolbox.

Cliff Ramsdell
085_Original.jpeg
 
jos51700 said:
My experience from Motorcycle World, and I'm assuming you're running a car shop and not a sawmill or dildo factory:

Our bonus was done bi-weekly and paid monthly, always on Saturday. They can't call in or come in hungover if the shop is closed the day after. You like watching a service shop run half-staffed on the busiest days of the summer? Pay 'em extra on Friday.

The easiest way to do bonuses? Go to flat rate and wipe your *** with the rest of it. I say that because the easiest way to handle WIP is to get the flat-rate time, and figure their flag time. If you're going to that trouble....just go flat rate.

Do you track comebacks and yo-yo's? If you don't, you will be.
Do those go back to the guy that worked on them, or someone above them? The only way to impact the bonus is to make sure the original tech worked on it, and your customers will NOT like that. Stick it to the tech up the ladder, and they won't like it. Bonus both techs, and YOU won't like it.
Also, be prepared to have your customers talk about how un-thorough your shop is. It won't take long for your techs to figure out that if it isn't on the work order, it's not on the work order.
Note: Upselling is not on the work order.

How about your electrical diagnostics jobs/people? They're going to get screwed on this deal, for doing you the favor of taking on the hardest jobs in the shop.
The oil change and 10,000 mile service guys will love you. You'd think they were running concentration camps in their spare time, they'll be so efficient.

Get ready for the bitching. Oh. My. God. The bitching. You'll get one guy in the shop that can't accept that his poor performance is the reason he isn't living in a mansion surrounded by strawberry fields, and next thing you know, they'll all be wanting to unionize because you don't have hot Latina's offering blowjobs at the water fountain and didn't give them NASCAR pit crew jacks for airing up tires.

Also, do you own the shop or are you the service manager? If you're the owner, are you ready for the service manager to get fired? Because it won't take him long to figure out that the techs won't bother to look up flat rates, and you can't be bothered to run the numbers. Next thing you know, he's telling you that his techs are maxing out bonuses even when they're on the shitter, and he's telling the techs that they hit 80%. Guess where the 20% goes? Cookie!


Long story short, either pay them so poorly that they can't afford to feed their kids or afford new clothes or time off for job interviews, or pay them well, based on their skill level, training, and attention to detail. Then train your service advisors to route the work accordingly.


Side note related to above:
My shop once decided to have porters perform test-rides in order to keep the techs at their benches tech'ing more. I was still a tech and I protested the problem, explained that porters are not techs and don't know what the original issue was, aren't trained or paid to diagnose (or verify a repair), and often don't know when a car only has three wheels and a malfunctioning windshield wiper. Watch a true tech when he drives a car, any car...He's (or she's) diddling the wiper knob like it's going to college for liberal arts. He's noticing that the oil light isn't on when the engine is off. He's growling about shooting up a school because the mirror won't stay adjusted. Etc. etc. Techs have expectations. Porters have brain amoebas.

Techs loved the idea. More Bonuses!!!
Porters loved the idea. More joy rides!!!

The porters started test-riding the bikes and low and behold, our comeback rate went from 5% to 50% immediately. Well, all except mine.
Why?
I had told 'em they would have to fire me (because they threatened to), I'm not sending someone out on a bike I couldn't vouch for myself.

Guess who never got recognized for their zero-comeback rate?

That policy lasted three weeks.
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Wow! The op needs to read this response twice.
 
Cliff Ramsdell said:
As a former shop Forman and service manager at a Dodge dealership in the late 80’s and early 90’s we did a weekly production incentive of $100.00 to the top producing shop mechanic.

It’s been awhile and time fades all the facts and details but it went to this effect.

We were a flat rate shop and the bonus was paid out on your total paid labor hours so it was level for all pay grades in the shop. The lube kid could mop up doing rotate and oil change with some upsell stuff like transmission service and such.

For In process work such as a transmission or engine rebuild or repair we would “credit” the time percentage wise to the mechanic. So say the job is a 20 hour flat rate job done 3/4 of the way through you would get 15 hours of the task.

We tried cash at the start but that causes a payroll issue of taxing the money, in the end we came up with a fake 100 dollar bill with Lee Iacocca’s face on it and hand that out weekly. We ran this for a few years, I don’t recall the end result but $100 dollar bill was pretty good at that time.

I still have one hanging in the back of my toolbox.

Cliff Ramsdell
View attachment 1716198752
Click to expand...
Good program but not fair at all for the electrical guy or the fellow that does a lot of warranty work. Warranty doesn't pay much. Pinched wires, and squeaks and rattles even pay less.
 
We had a flat rate shop, but a few guys that weren't that quick, but WERE consistent quality work, just wanted pay by the hour, less stress, it worked for us.
We had what we called "the nut" the floating shop labor target for a 3 mo period, once the nut was reached, the bonus was based on amt over, split "x" flat-rate ways.
We kinda took over the established way from the previous owner of many years.
I kinda missed out cuz I went from being kicked in the *** apprentice, thru ticketed, then my mentor and I bought him out.
The hourly guys got irregular "well done" $$$ when they had an exceptional week.
If we had an exceptional performing member, we we give him a "x$ bonus", not a "raise", but a bonus as long as his good performance continued.
If the guy slacks off, starts taking too long for lunch, etc, you don't give him his "bonus" one paycheck, you remind him it's a performance bonus, if he's any good, his performance will improve, or his check won't.
Comebacks go back to the tech, the job is done on his time, and shows as a "deduct" on his timesheet.
Mosta the flat rate guys made well over 40 hr weeks, less than 2% real comebacks .

Just an amazing observation, some of the techs that rolled in piece of **** toolboxes, 2x4 holding up one corner, every tool miss matched, - - turned out to be the best, quickest, smartest guys.
I learned the guy that rolls in 2 or 3 shiny cabinets, they don't mean he knows how to use them .
Not always .
just saying . .
 
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Toolmanmike ...I did read the first post twice, all of them in fact, what I get so far is there just isn't a plan that is fair to all this is my concern, the objective here is simply to increase the shops bottom line without damaging a good reputation or pissing off techs, so far I'm not seeing a huge benefit but....keep the experiences and ideas coming, I'm reading them all!
 
I guess my question would be, is something broken?

If not, don't fix it.
 
mopar56 said:
We are trying to raise proficiency, like I said I have two business partners, I'm not convinced this is the way, just doing some research and homework.
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Give them a tiered bonus
 
If I had my way, I'd look at an annual something, or possibly every six months.

Give them a long term focus, and they're more likely to stay long term. If they have a bad job, bad week, or bad attitude, it gives them time to turn things around without feeling like they've ruined things
 
I worked at a shop that paid hourly but kept track of percentages of flat rate performance. 130% tiered you up, 150% tiered you up more, 170. 200 and the top dog got a bonus. It provided for a lot of banking of time.
 
Iran chains and wrenched for independents. chains just paid a percentage. independent paid a bonus on hours produced over 40.
 
The *****’n goes up
the come backs go up, next thing nobody’s happy.
I have a friend that would give bonuses based on gross sales for the year at Christmas time, one year he heard so much complaining he just quit that was it no more. I’ve got another friend that gives bonuses based on seniority and profit sharing, to me It seems expensive but his guys have been with him a long time.
 
it sounds like you're trying to incentivize the techs to turn more work.

a biweekly/monthly bonus might help in that department.

if you're trying to increase the bottom line, i'd say look toward efficiencies and utilization around the shop and business practices before leaning on techs to produce more loot. sometimes squeezing the labor sows unrest and distaste.
 
I can say this. Good service writers are the backbone for the business. Flat rate or not.
 
Well, I was also thinking profit sharing, pretty easy, the shop makes money, so do the techs, bonus plans can cause so much drama and its difficult to structure with " wip" just don't think I'm going to be able to convince my business partners so I may have to try something just to apeaze them, lol then I'll do something different.
 
mopar56 said:
Well, I was also thinking profit sharing, pretty easy, the shop makes money, so do the techs, bonus plans can cause so much drama and its difficult to structure with " wip" just don't think I'm going to be able to convince my business partners so I may have to try something just to apeaze them, lol then I'll do something different.
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Here is a kicker. I don't like being called a "technician". Maybe your employees are techs but I consider myself to be a Mechanic. Ya, we are a fickle bunch.
 
Bodyperson said:
Here is a kicker. I don't like being called a "technician". Maybe your employees are techs but I consider myself to be a Mechanic. Ya, we are a fickle bunch.
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About 2yrs before I walked out of My last wrenchin' gig at the dealership, the then-new "pre-owned" car Mgr was talking in the office, stating how today's Techs are "APC's"....Authorized Parts Changers. I looked Him right in the eyes and said; " Dude, You need to get Your head out of Your ***!"
It has all been summed up pretty much above. Flat-rate turns greedy, lazy techs into thieves, the quality goes in the tank & comebacks thru' the roof. They also learn quickly, like a child, if You give them a task they don't want to do....take forever to do it & F-it up as badly as possible. Oh, the writers will whine & complain, but the pain-modified behavior will kick in & they'll stop giving them the **** jobs. We had a yearly bonus, based on "productivity", the dumbest laziest guys would not only haul in the hours all year...but reaped the reward for being that way as the final insult to the rest of Us who solved problems & knocked out the warranty work and their comebacks. Some heads finally rolled, but when experienced guys roll home with 4.5-6hrs, & the numbnut in the next bay goes home with 17hrs, after hiding the lower b-joint in His box that He flagged 2hrs for...which only pays 1.5, & gets away with it.....morale is going to be a serious issue.
That's the tip of the iceberg, lol!! Profit sharing is actually a better idea, but even then, the writers & parts personel got paid commision on the shops productivity...and seemed to fight it at every turn sometimes...mind boggling....
 
Possible silly suggestion-

Can you just give a small bonus for additional certifications or training class attendance?

That could at least inspire some additional training if not the actual practical application.
 
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It's funny reading all the post from the guys that have worked flat rate automotive shops, that was my world for 30 years before I moved to marine and it seems nothing has changed there. I'm actually taking my 2019 Ram in tomorrow to the dealer for a small warranty job, but honestly I don't know if they really took the time to properly diagnose it two weeks ago when they ordered the part or just guessed because it's easier and more profitable to do that on flat rate. If it wasn't for the warranty I wouldn't be there. As far as my shop goes, like I said it's marine so other than warranty work it's not flat other than a few simple services. I was really hoping to read here where someone was using a functional efficient plan, but it seems most are or were flops. I'm thinking a quarterly plan based on monthly hours but eliminating Dec, Jan, Feb, which are our slowest months in this very seasonal business. Or not at all, but as I said this isn't my sole decision, some people prefer to learn the hard way.
 
Sounds like you're not actually after "proficiency" as stated in the OP, but rather "productivity".

Not the same thing, may or may not be tied together.

The pitfalls, were pointed out, though.

I'll never forget the guy I worked with that got two bonuses in a row for "most work orders", pic in the news letter and everything.

Except his work was CRAP.

I personally had to go "fix" several of his "fixes".

This was building maintenance, though.

He did crap like- put the faucet knob on upside down and then tighten it so tight that it wouldn't move.
Really? How about- you try to turn it on before you leave.

Finally enough other guys bitched so much that they simply ended the program.
 
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