Team Structure Trends, Technician pay and efficiency and productivity
The Ratchet+Wrench Industry Survey found a clear correlation between technician pay structure and efficiency/productivity. Hourly pay is the most common approach (27%), followed by hourly plus commission (22%). Only 3% of technicians receive a salary plus commission.
The data shows that 43% of flat-rate and salaried technicians achieve efficiency rates over 100%, compared to a significant decrease for hourly and hourly-plus-commission structures. However, the highest productivity over 100% is seen in flat-rate and salary-plus-commission technicians, at 29% each.
The survey results suggest that the type of technician pay structure impacts their efficiency and productivity levels. Flat-rate and salary-plus-commission arrangements appear to yield the best results in this regard.
Technician pay structures, efficiency and productivity
Hourly: 27%
Technician efficiency over 100% - 12%
Technician productivity over 100% - 7%
Hourly + commission: 22%
Technician productivity over 100% - 15%
Technician efficiency over 100% - 18%
Flat rate: 22%
Technician efficiency over 100% - 43%
Technician productivity over 100% - 29%
Salary: 11%
Technician efficiency over 100% - 43%
Technician productivity over 100% - 12%
Salary plus commission: 3%
Technician efficiency over 100% - 14%
Technician productivity over 100% - 29%
Other: 15%
Some of the other forms of remuneration that were reported in the Ratchet+Wrench Industry Survey were: flat rate plus guarantee, flat rate plus bonuses, multilevel flat rate and hourly plus bonus, and flagged hours.
