Salary VS Performance based pay? I need ALL of your opinions
Posted to Open Discussion Forum on 3/9/2013
33 Replies
Hey guys, I need some advice on this topic so I'm writing
this post! I know it's a long one but please read the whole
post! Thanks!
First off, I'm a 12 year experienced auto tech, with ASE
Master and L1. My specialty is in diagnostics, electrical
diagnosis, and emissions diagnostics. I can diagnose any and
all types of dash lights, electrical shorts, parasitic draw
diag, emissions diag, srs, abs, etc..... I also work on
hybrids, have strong knowledge of how it operates and how to
repair them (replacing battery pack cells), diagnose high
voltage drains and shorts using a Meg ohmmeter. I am
proficient with any and all types of scan tools, meters, and
oscilloscopes to aid in my diagnosis. I do not like to jump
to conclusions without substantial test results, so when I
say a car needs something, I have the facts to prove that it
failed.
I have been in the industry long enough now, and have been
in both east coast and west coast, and have seen tremendous
differences between the two coasts as far as shops are
concerned. I've worked in NY as a tech, and have always been
on salary pay. (Paid every week based on skill) Now that I'm
here in California, things are quite different. Most shops
use performance based pay, either commission off of total
sales or total amount of hours billed, or flagged hours.
These are my opinions.
Salary Based Pay - Techs get paid a set amount of money on a
regular basis, regardless of how many hours worked or
billed. Salary amount is based on technician's skill level,
not how many hours flagged. Salary is good for techs because
he doesn't have to worry or be concerned about who gets what
car and who gets which type of job. He only needs to
concentrate on his job which is to repair cars! Shops pay
the techs even when business is slow, but at the same time,
the tech keeps himself busy in the shop by cleaning
equipments, cleaning offices, bathrooms, tools, cars, etc. I
see this option as a win- win situation. All shops I've
worked in back in NY were salary based.
Performance- based pay - The tech gets paid depending on how
many hours billed or worked, or how many hours he can flag
in a given period of time. Technician has the ability to
make more money if he gets more hours in, which in turn
makes the shop money. I can understand this part, but this
option tells me that a tech who doesn't know anything about
diagnostics or electrical systems of a car can make more
money than a diagnostic tech with the right jobs and right
amount of cars! I see most shops in California using this
type of pay plan, but every shop that uses this plan, always
have politics going on in the office! The service writers
and the tech that has been in the shop the longest always
work together so the tech can make the most money per week!
There's always one guy that gets all the cheddar, and the
rest of the crew feeds off of the leftovers. And since
everyone works off of commission, any techs not working does
not get paid! But only due to the fact that the jobs were
dished off to the first guy rather than distributing it
evenly amongst the entire crew! I saw and still see so much
of this going on near my area (Southern California).
I personally am against performance based pay plan because
of these reasons. Some owners or managers tell me that
that's the only way he can get the techs to work faster or
more efficient, and make more money, but I disagree. I've
been in great shops in NY that had great flow, great
efficiency, where everyone was on time, ready to work, and
boy did we produce! This shop paid everyone on salary based
on their skill level!
So being a Master/ Diagnostic tech that I am, I have pride
in what I know, what I can do, and take professionalism very
seriously. I can produce 50 to 60 hours on average IF there
were that much work left for me. I hate POLITICS INSIDE THE
SHOP!! I just want to work hard, diagnosing and repairing
cars, and not having to think about who's getting what car
and how many hours this job has and that job has.
WHAT DO YOU GUYS THINK!!
Kevin Park
Technician
Independent Car Specialist
Los Alamitos, California, USA