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%
About the Author
Chris Jones
Group Editorial Director
Chris Jones is group editorial director for the Vehicle Service & Repair Group at EndeavorB2B.
A multiple-award-winning editor and journalist, and a certified project manager, he provides editorial leadership for the auto care industry's most trusted automotive repair publications—Ratchet+Wrench, Modern Tire Dealer, National Oil & Lube News, FenderBender, ABRN, Professional Distributor, PTEN, Motor Age, and Aftermarket Business World.
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