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We pretty much all know about flat rate book hours. A job pays .8 for an alignment that sort of stuff.
I was shown a system where you get paid $10 a hour, then make a percentage of that shops profit for that week. Something like 10% for the top tech. So you get paid 40 hours at $10 hr, plus %10 of the stores profit for that week. If the store does $3000 in profit, you get a $300 bonus that week.
Kind of like split rate, except you make 40 hours pay, plus a percentage of all the stores profit for that week.
Which is better? I’ve seen busy tire stores that do gravy work, stay pretty busy and the techs make about $60k a year.
And I’ve seen dealership techs make far more, but they earn every penny.
Pros and con’s of each?
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In the uk techs are on a salary and i think that’s the best way to do things it’s really not your fault if the shop is dead you’re there and willing to work you should be paid accordingly we have efficiency targets and such which are used to calculate bonus/weed out the people not doing there job but overall the system works as long as you dont expect to make bonus every month as it’s just not a realistic goal.
Salary sounds like a pretty decent idea, couple with efficiency standards to weed out bad techs. Slow times would average out with heavier scheduled parts of the year.
I like the sound of the percentage system, but it would have to be the right environment for it to work properly. The dividing of it would have to be done based on hours worked, if not the guy I work with that rolls in at 8:30 and out at 3:30 would make as much as those of us there from 7 to 6.
The nice thing about flat rate, when it’s dead you can go home early. The bad thing about flat rate, when it’s dead you go home early because you made no money.
It does suck when it goes dead because you have to stay no matter what, but at the end of the day you’re guaranteed a pay check and with the company paying you anyway it’s in there interest to keep the workflow up.
I’ve worked on several different pay plans. I’ve been hourly with spiff bonus, flat rate with production bonus for every 10 hours I go over 40, one with two different pay scales “12hourly/28 flat rate” and got whatever paid more at the end of the week. Now i’m hourly with a weekly goal, If I hit my production goal for the week I get 10% of everything I do over my goal. Works out pretty good for me, I know i’m always going to bring home X amount as a minimum but most weeks I tend to do far better.
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