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

Updated Dec 30, 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.


Learn how to move your used trucks faster
With unsold used inventory depreciating at a rate of more than 2% monthly, efficient inventory turnover is a must for dealers. Download this eBook to access proven strategies for selling used trucks faster.
Used Truck Guide Cover