[This article was originally published in 2013 by Trucks, Parts, Service. It has been updated to include more timely information.]
No matter what the position, compensation matters. When you have quality employees, it’s important to have a payment structure in place to keep them — especially in the heavy-duty aftermarket where good technicians are hard to come by.
Today, the two most popular methods for compensating service technicians are a flat-rate system and an hourly system. Each has advantages that can work in your business.
The flat-rate system is gaining popularity in the industry. The system works by charging customers and paying technicians for an equal amount of hours when providing service. If a service provider quotes a fleet two hours to replace two brake shoes, the technician making the repair is then paid two hours in wage to complete the job.
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The flat-rate system is a positive influence on technicians because it motivates them to complete work in the time billed on repair invoices.
