The industry continues to complain about the scarcity of vehicle technicians. I contend there is no shortage of technicians, who I call “doctors of iron.” Rather, there is a lack of management processes on what and how we pay, how technicians are treated.
One of the trucking companies I used to work for had a location that was a one-man shop. Back in 1994, Doug White, director of maintenance, and I, the vice president of distribution, were having a difficult time replacing the retiring doctor of iron at that shop.
Going beyond thinking outside the box, we jumped out of it and put a want ad in the newspaper with an hourly rate that was $7.00 per hour more than the “competitive rate.” We had a line of candidates around the building.
Most companies will not increase the technician’s compensation more than a very low percentage as it “disturbs” the pay process. On top of that, many fleet shops are not able to hire, much less retain, technicians because their shops are filthy, parts rooms are totally unorganized and the bathrooms are worse than those in third-world countries.
All this can be fixed, and already is being done.
DEALERSHIPS
Many automotive dealerships are compensating their technicians with six-figure incomes and have them working in environments second to none. They have the ability to pay them a flat rate structure with a strong hourly rate, and can collect 80 hours of time in a 50-hour week if the technician is “hungry” and free to earn.
Truck dealerships, to some degree, are following the automotive industry in creative pay structures and work areas that command professionalism. Plus, they are providing continual training. This has dealerships absorbing the fleet pool of technicians.
As a consequence, many fleets are feeling the pain of “captivity.” With not enough technicians, they are being forced to go to dealerships for service and repair work and pay the hourly door flat-rate structures.
For survival, big and small fleets have been forced to change how they operate their shops. They’ve had to upgrade facilities so that they are clean, neat, warm, organized and polished. They have not, however, moved beyond using the corporate world’s “competitive” salary surveys to make the compensation of their doctors of iron in line with their competition, surrounding businesses and economic environments.
NOT THE PAY
When it comes to hiring and retaining technicians, it is not so much the pay, but the pay programs and, more importantly, the planned compensation progression.
Fleets tend to pay whatever it takes to get the technician through the door. From that point on, they struggle with the “process” to keep them. Nationally, the retention rate for technicians averages 2.5 percent.
Most technicians look for a good starting compensation package and leave for money because of no salary progression, no clear future path, a poor and unsafe work environment and a lack of leadership.
Here are some thoughts and recommendations for technician retention.
1. Entry Pay
Pay above the prevailing wage and higher than the competition. Pay what the technician needs, and do not promise an increase in x number of days because circumstances could arise where this may not happen.
Coach and counsel each new hire. If that person doesn’t cut it, terminate them in 90 days or at will.
2. Pay Progression.
Have a plan in place such that if the entry level pay is $15 per hour and the top level is $25, for example, the top scale is paid within five years. Have an automatic progressive adjustment program wherein the employee automatically gets $1 every six months if they earn a raise. Over five years, the technician will rise to the top pay. In this way, the progression of increases is well known.
Each pay progression must be accompanied by a self-evaluation review and approved by the managing supervisor. If no self-evaluation is submitted and reviewed, the pay progression will stop.
This progression may or may not include the normal percentage increase that the company may approve as a corporate annual adjustment. Level plans, entry, Level C, Level B, Level A, AE and A Electronics are a roadmap to progression.
3. Add-Ons
Include certain add-ons that would normally be incentivized in the pay progression. For example if a CDL is required, the technician must obtain this license within one year of hire for a $1 per hour add-on
Make ASE Certification part of the pay progression process. Pass x amount for an immediate step move. Pay for certain registration and testing fees – whether the technician passed or failed – up to two times. Once the technician passes, reimburse any fees not paid.
4. Shift Differentials
Add a shift premium for a technician that works the second and third shifts. As an example: $2 per hour for the second shift and $3 for the third shift and weekends. For shops with a four-day week, on any shift where both Saturday and Sunday are part of the normal shift, pay an add-on of $4 per hour.
5. Supervisor/Shift Lead Person
Pay shift lead people for shops, shifts, etc., at a Responsibility Pay rate. Pay a per hour add-on for those who lead, take charge and/or control the environment in the absence of a salaried supervisor.
6. Mobile Repair Vehicle
Add an additional incentive of $2 per hour for any technician assigned full time to a mobile onsite outdoor repair environment, along with an add-on as described in the Shift Differentials section. These incentives are not for road service calls from a facility.
7. Tool Allowance
With the ever-increasing cost and control of tools, pay an hourly tool allowance that covers wear-out tool replacement and investments in new tools, safety shoes, rain gear, etc. This could be approximately 50 cents per hour, and should be on a separate line on the pay stub for tax purposes.
This incentive should be removed if it is used for not required tools and equipment, or if the money is pocketed rather that spent.
8. Tool Box Startup
This is for new, entry-level doctors of iron. Pick a dollar amount, say $2,500, for a new, small, non-premium, rollaway tool box, plus $2,000 worth of non-premium tools, with progression of earned ownership after three years of satisfactory progressive employment.
After three years, the technician gains 100-percent ownership. However, if they leave, the next entry level technician latches on to the subsidizing support.
9. Safety Incentive
Devise some form of safety incentive. This could be $500 per year, paid prior to the yearly vacation, annually, end of year, birthday, etc.
10. Training
Pay the standard, normal, straight time hourly pay for all pre-approved training done during off-work hours, whether on- or off-premise.
Compensate all off-premise factory training. Travel time is the responsibility of the technician, but pay any travel expenses.
Technicians want training and plenty of it. Schedule regular training.
11. Vacation
Have a fair and reasonable vacation policy. Make sure technicians take at least one solid week off. Allow them to carry over all unused vacation for a reasonable period, or pay them for all unused time.
12. Holiday/PTO
Holiday and paid time off (PTO) should coincide with standard company holidays. There should be some added personal time off, sick days and flexible days – all scheduled, of course, which should be paid at year’s end if not used.
13. On Call
Any hourly technician who is on call or responsible for off-hour calls and activities should be paid and on-call fee per day and for all hours active beyond one hour of each day. This person must be available 24 hours at all times and able to perform activities of responsibilities.
14. Attendance/Lateness
Pay for attendance and showing up to work on time. This could be x amount per hour, based on a six-month period. Make this a separate line on the pay stub as well.
15. Flextime
This is paramount because everyone has family matters, needs and issues.
All employees appreciate being able to occasionally adjust their work schedules.
16. Overtime
While all companies need to manage overtime, a 10- to 15-percent level is reasonable. In those situations where a company does not pay overtime, only straight time, more hours can be scheduled for technicians to increase their income.
17. Six Days versus Five Days
Consider changing the work week. Today’s younger technicians do not want to work six days. They really want a four-day work week and no overtime, but will accept workings five days, Monday through Friday. Their social life has become the new priority in our workforce.
18. Insurance
Have a good health insurance plan that is easy for technicians to use and has reasonable deductibles.
19. Uniforms
Supply uniforms to all technicians, with clothing appropriate for the climatic conditions. Uniforms promote professionalism. Be sure to replace uniforms when they become worn.
20. Shop Tools and Equipment
Technicians want and need up-to-date equipment and tools that are well maintained. These ought to be well-organized and readily accessible.
21. Computer and Updated Software
Having new-technology computers with diagnostic and repair information that is kept current is essential. To speed connectivity, consider adding wireless connections to your shop if you haven’t already done so.
22. Parts Cleaners
Have parts cleaners readily available and not located in remote locations. These machines need to work properly and the fluid needs to be changed on a regular basis.
23. Tool Insurance
Be sure technicians not only understand the importance of having insurance on their investment in tools, equipment and storage solutions, but that they actually have coverage.
24. Technician Evaluations
Have some type of program in place for technician evaluations – “report cards” on their performance. Evaluations must be timely. informative and include useful feedback on the technician’s strengths and weaknesses to help him evolve with the company.
WHY THEY LEAVE
Now let’s talk about why technicians leave. Here are some of the foremost reasons.
1. Poor Management
- A lack of leadership and directional guidance.
- No clear management structure and/or chain of command.
- Poor and ineffective communication.
- No clear and logical rules for discipline.
- Shop meetings that are a waste of time.
- No recognition and appreciation.
2. “Outside” Tasks
Technicians do not like being given duties that are outside their job functions and responsibilities. For example: shoveling snow, doing yard work, painting, cleaning bathrooms, etc.
3. No Upkeep
Little things can make a big difference in keeping technicians, or losing them. Are the break room microwave, coffee pot and refrigerator kept clean? Are the soap dispensers kept full? Is there toilet paper and paper towels?
4. Shoddy Facilities
Is your shop conducive to enabling technicians to do quality work?
- Is there adequate ventilation, heating and air conditioning?
- How is the lighting?
- Is the floor full of holes and cracks, dirty and slippery?
- Are the garage doors damaged?
- Are the work areas disorganized and cluttered?
- Are there unsafe working conditions?
- Are tools and equipment well maintained and organized?
5. Parts and Supplies
For technicians to be productive, the appropriate parts and supplies need to be in stock. Parts and supply rooms need to be well organized for easy access so time is not wasted looking for things.
6. Fear
Do you keep your technicians in the loop about goings on within the company to avoid having an active rumor mill?
7. No Training
As mentioned previously, technicians want continual training. Be sure that you make available training opportunities to allow them to hone their skills and develop new ones.
WHY THEY STAY
Here are some things that make technicians happy and keep them working for your organization.
- A solid organization.
- A clean, safe, organized and well-equipped work environment.
- Structure and security.
- Professional and active leadership.
- Constructive feedback on their performance
- Appreciation and recognition.
- A balanced family and employment situation.
- Reasonable and flexible work schedules.
- Good pay and benefits.
- A clearly defined and understood pay progression.
- Stability, security and a career growth plan.
Darry W. Stuart is the president and CEO of DWS Fleet Management Services (www.darrystuart.com). The company has been providing Limit Time Executive Services to fleets and organizations for more than 16 years. An active member of the Technology & Maintenance Council (TMC) Stuart has more than 45 years of career management success in guiding, coaching, driving and managing fleets for more efficient, lower cost maintenance operations.
