Providing Auto Shop Management SOFTWARE Solutions Since 2005


Employee Compensation in Automotive Repair

Although there are many factors that will attract and retain employees – the primary reason people go to work each day is to earn a living. In this area the shop is marketing itself as a desirable place to work and the employee pool in the local area is the target market. Just as automotive repair shops know their competition – people in the automotive repair industry know what different shops offer in terms of compensation and will gravitate toward the shops they deem most desirable. Following are three key factors in automotive repair employee compensation:

  1. Competitive Pay – In automotive repair a number of different pay structures are used. Technicians can be salaried, hourly or paid a portion of flag hours. In addition different incentive and bonus programs are employed for service advisors, technicians and parts managers. The key point is that compensation must be competitive. It must be in line with other employers in the area. If it exceeds other employers all the better.
  2. Benefits – Benefits are an important part of compensation. Items such as insurance, paid holidays and vacation have a big impact on attracting and retaining quality personnel. Just like pay this area must be competitive in relation to other employers in the area.
  3. Perquisites – Seemingly small things can make a difference in retaining employees. Things like parking spots, company paid lunches and tickets to movies and events send the message that people are getting something extra. Sometimes competing in this area is a way to excel over the competition.

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