Put the Carrot Where You Want Your Techs To Go

In many dealerships, the technicians are hourly employees without any formal bonus incentive structure offered. I have heard the view expressed that “We pay technicians by the hour to do their job, so why should they get a bonus?” While I can understand that argument, I am convinced from experience that it negatively affects the bottom line. I have seen the impact that an effective bonus program has on both customer satisfaction and productivity. Focusing on technician activity that produces effective results and rewarding achievement of those results is a win-win for the technician, the customer and the company.

Everybody Works for Their Self Interest

When my previous employer hired me, my manager told me that he would like me to spend two days at each dealer I visited. He then reviewed the bonus structure that was in place. The bonus structure was based on the number of visits I made and the cost per visit. I told him that he was paying me to do one-day visits. I suggested modifying the bonus structure, but that was not acceptable. So I did one-day visits. This was not what he wanted, but it was what he paid me to do.

I am not aware of any dealership that pays salespeople by the hour. There is a reason for that. Salespeople are paid based on what they sell, which gives them a strong motivation to go out and sell to the best of their ability.

Technicians are no different. They will work to their compensation plan. If they are paid by the hour with no bonus structure, they will work their 40 hours, but they will have no motivation to work in the most profitable way for the company.

Continue to read the article in the free member's area or in ENX Magazine,  https://www.enxmag.com/twii/service-management/2016/06/tech-compensation-put-the-carrot-where-you-want-the-tech-to-go/