Bennett: Beyond the Pay Plan: Part 1: Diagnose Before You Incentivize

Before you change how technicians get paid, find out what is keeping them from producing.

Key Highlights

  • Focus on following the work process in detail to identify true bottlenecks rather than relying solely on production reports.
  • Recognize that a busy shop or parking lot can mask underlying issues like delays, miscommunications, or lack of approved work.
  • Understand that leadership's role includes providing clear expectations, timely decisions, and necessary resources, which are critical for sustained productivity.
  • Use targeted conversations with technicians and staff to uncover specific obstacles and clarify responsibilities, rather than defaulting to motivation-based solutions.
  • Design pay plans that align with achievable, controllable behaviors, ensuring compensation reinforces actual productivity improvements.

It’s Friday afternoon, and you’re looking at the production report, trying to reconcile what’s on the screen with what you watched happen all week.

The parking lot was full. The phones were ringing. Your service advisor barely had time to eat lunch, and every time you walked through the shop, somebody needed something. By every visible measure, you were busy.

But the billed hours tell a different story.

You look at payroll, then back at production. You can’t keep having weeks like this. Eventually, the thought shows up: “Maybe the technicians have gotten too comfortable. Maybe this guarantee is taking away their urgency.”

By the time you leave for the weekend, you’re mentally rebuilding the pay plan.
It’s an understandable response. Compensation is something you can change, and when the numbers are moving in the wrong direction, taking action feels better than sitting with the problem.

But before you spend your weekend figuring out a new bonus structure, consider what that same response would look like in another business.

A Busy Dining Room Doesn’t Explain a Slow Kitchen

Imagine you own a restaurant. Every table is occupied, the servers are moving constantly, and customers are waiting too long for their meals.

Looking through the kitchen doorway, you see a cook standing beside the grill. You decide the kitchen needs more motivation, so you offer a bonus for getting more meals out during the dinner rush.

Then you learn what’s actually happening.

Orders are coming into the kitchen with missing information. Ingredients that should have been prepared before dinner service aren’t ready. One oven is out of service, and finished entrées are waiting for side dishes before anyone can take them to the tables.

The cook has plenty of reasons to want those meals out faster. What’s missing is the ability to move them through the kitchen.

A bonus might influence effort. It won’t repair the oven, clarify an order, or finish the prep work that should have happened two hours earlier.

You would need to understand where the meal was getting delayed before deciding how to improve service.

The same is true when the product moving through your business is a completed repair.

A Full Parking Lot Can Hide an Empty Pipeline

Imagine following one technician through a day in your shop.

They finish the first job and discover the parts for the next assignment haven’t arrived. There’s another vehicle available, but the customer hasn’t authorized the work. The advisor has been handling the morning rush and hasn’t finished presenting the estimate.

The technician moves to an inspection. Halfway through, someone asks for help diagnosing a problem in another bay. After returning and completing the inspection, the technician sends the findings up front, then waits to find out what’s next.

By late afternoon, several jobs are finally approved. Now everybody wants to know whether the cars can be finished today.

From the office, it looks like a technician who didn’t produce enough. From the bay, it feels like a day spent trying to get into a rhythm that never lasted.

Put a larger bonus in front of that technician, and what changes tomorrow morning? The parts still have to arrive. The customer still has to approve the repair. Someone still has to decide which job comes next.

The technician may want the additional money. They may already want to produce more. Neither desire gives them control over the things holding up the day.

A parking lot full of vehicles tells you cars are present. It doesn’t tell you how much approved, ready-to-perform work is available to the person you’re asking to turn the hours.

Follow the Work

This is where the conversation needs to move beyond the production report.
Sit down with that technician and ask them to walk you through yesterday. Be curious enough to stay with the details. When one job was finished, what happened next? When work stopped, what were they waiting for? When a decision was needed, who could make it?

Then follow the same work through the front counter and the parts process. You may discover that everyone was working hard inside a process that made it difficult for anyone to finish.

You may also find a very different problem.

Perhaps the technician has never been given a clear production expectation. You believe “have a good week” means one thing; they believe it means another. Perhaps they understand the target but struggle with a category of work that keeps landing in their bay. That points toward training or dispatch decisions.

Sometimes the shop simply hasn’t generated enough approved work to support the production it expects. Sometimes the work is there, but access to equipment, information, or decisions keeps interrupting it.

And sometimes an employee has the ability, the opportunity, and a clear understanding of the expectation, but isn’t following through. That deserves a direct conversation about commitment and accountability.

Those are different problems with different remedies. We make them harder to solve when we put all of them under the heading of “motivation.”

The purpose of investigating is to understand which conversation you actually need to have.

Where Leadership Enters the Picture

This can become uncomfortable for the owner.

It is easier to talk about a technician’s urgency than to recognize that estimates wait for your approval. It is easier to question someone’s commitment than to admit that production expectations change depending on how worried you are about payroll that week.

You may discover that the team has learned to work around problems leadership has allowed to continue.

That doesn’t remove employee responsibility. It makes responsibility clearer. If the shop is responsible for providing approved work, usable equipment, and timely decisions, those expectations deserve the same attention as the technician’s production target.

Once those conditions are in place, you can have a much more useful performance conversation. You can discuss what was expected, what support was available, what actually happened, and what needs to change. You can agree on the next step and follow up.

Accountability becomes more credible when the owner is willing to examine both sides of the equation.

Give the Pay Plan a Job It Can Do

Compensation matters. A poorly designed plan can reward the wrong behavior, create friction between employees, or make additional effort feel pointless.

There are legitimate reasons to change one.

But a pay plan cannot supply missing technical knowledge or get an unanswered estimate in front of a customer. Raising the reward for completed work doesn’t automatically make that work easier to complete.

Before changing compensation, you should be able to explain the behavior you expect the change to influence, and why the employee has a reasonable opportunity to deliver it.

If you can’t make that connection, you may be using payroll to address a problem that belongs somewhere else.

Go back to that Friday production report. Choose one disappointing day and reconstruct it with the people who lived it. Look for the point where available time stopped becoming completed work. Listen for the explanation you hadn’t considered, especially if you’ve already decided you know the answer.

You might uncover a compensation issue. You might uncover a training need, an unclear expectation, or a handoff that breaks down every morning.
Whatever you find, you will have something more useful than a suspicion. You will have a place to begin.

In the next installment, we’ll look at what happens after you identify the constraint: removing the everyday friction that keeps capable people from producing consistent results.

For now, think about that restaurant. Before promising the kitchen a bonus for getting dinner out faster, you would want to know why the meals weren’t reaching the tables.

Give your shop the same consideration.

The production report is telling you something needs attention. It hasn’t told you to change the pay plan.

About the Author

Mike Bennett

Mike Bennett

Mike Bennett has more than three decades in the Independent Auto Repair industry. Mike has been an ASE Master Technician and is the owner of Mike’s KARS Inc. in Gettysburg, Pennsylvania. Fully immersed in the industry for his entire professional career as a master technician, shop foreman, general manager, and automotive shop owner, Mike has a unique and broad perspective on the shop owner experience. Mike is able to communicate with real-world experience and a “been there and done that” perspective. As an Alumni shop owner with the Automotive Training Institute, he continues to operate his shop with his wife Shelle. Mike is now a nationally certified executive trainer and he has spent the last 11 years as a full-time business coach with ATI as well as leading two of ATI’s premier shop owner 20 groups as well as the first-in-industry CEO/COO development program.

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