Numbers: Pay Plans' Effect on Efficiency

Oct. 26, 2022

Is it true that a flat rate leads to the most efficient and productive technicians? Let's go inside the data.

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%
Is it true that a flat rate leads to the most efficient and productive technicians? Let's go inside the data.
About the Author

Chris Jones | Editor

Chris Jones is the editor of Ratchet+Wrench magazine and host of its companion podcast, Ratchet+Wrench Radio, a weekly show featuring automotive professionals across the auto care landscape.

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