Top 10 of 2013: How do you pay your techs?

News Jason Cannon December 27, 2013

The No. 2 story from Truck Parts & Service looked at the varying types of pay plans for service technicians; primarily a flat-rate system and an hourly system.

According to Mark Martincic at KEA Advisors, a heavy-duty consulting group, the flat-rate system is a positive influence on technicians because it motivates them to complete work in the time billed on repair invoices.

“The [flat-rate] system is a great way to increase productivity,” he says, “because it allows a service provider to equalize the labor it bills with the labor its technicians provide.”

RELATED: No. 3 Top 10 of 2013: Finding, keeping and training a tech 

Katie Hopkins, executive vice president at Truck Centers, Inc., says her ­company has been using a flat-rate system to pay its technicians since the 1980s, citing benefits that speak for themselves.

“I think it motivates [the technicians] to do their work as quickly and effectively as possible,” she says. “It allows them to create their own destiny.”

RELATED: What is the top story of 2013? Click here and find out.

The hourly system is the most common payment plan in the heavy-duty industry. The system works by compensating technicians a certain wage per hour for the work they perform.

“It does allow [them] to manage repairs efficiently because it keeps technicians working on a repair until it’s completed,” he says. But Martincic says an efficient shop isn’t always the result of efficient technicians.

To read the original article in its entirety, click here.