Running a Shop

Numbers: Pay Plans' Effect on Efficiency

Order Reprints
1122 Numbers Flat Rate Salary-1.jpg

One of the longest and most contentious debates in the repair industry centers around technician pay. Mainly, which type of pay plan is going to lead to the most successful business? Now “success” can mean many different things. From KPI measurement to fostering a strong culture amongst employees to customer satisfaction. 

Isolating for just one factor, efficiency, the 2021 Ratchet+Wrench Industry Survey found there is a clear difference between shops that use a flat rate and shops that use anything else. 

How do you pay your technicians?

  • Flat rate - 25%
  • Salary - 9%
  • Hourly - 28%
  • Hourly plus commission - 20%
  • Salary plus commission - 5%
  • Other - 13%

Average technician efficiency of shops based on pay plan

% of shops with less than 100 percent efficiency

  • Flat rate - 49%
  • Salary - 66%
  • Hourly - 72%
  • Hourly plus commission - 62%

Related Articles

Numbers: How Pay Plans Effect Efficiency

Utilizing Efficiency and Productivity Numbers

Utilizing Productivity and Efficiency Numbers

You must login or register in order to post a comment.