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NormChris
02-27-2004, 10:22 PM
Technician Incentive Program


I have been asked by an HVAC contractor to help him increase the productivity of his technicians. One of the items we discussed was developing a technician incentive program. Raises and other benefits based upon increased productivity. We already have a great tracking system that shows the billable time for each technician as opposed to the hours the technician is paid for.

I am interested in finding if other service contractors have a technician productivity incentive program and how it works.

How about where you work? Do you have an incentive program and how does it work?

What sort of an incentive program would you like to have?


Norm

midhvac
02-27-2004, 10:40 PM
Many companies have those. If they don't bring in enough money they get fired.

rob10
02-27-2004, 10:43 PM
Any type of commission works well. Speaking from a tech's point of view.

JohnB
02-27-2004, 11:13 PM
Here's a program I am fond of.

A boss that knows where he is going and how to get there.
A boss that leads by example.
A boss that shares the wealth created by the company.
A boss that knows there would be no wealth without all the players in the company.
I could go on and on but you get the picture.
A good raise lasts less than 3 months, everyday recognition makes you feel good everyday.
Money is important but if you don't like where you work or feel secure you won't produce and you will leave.

NormChris
02-28-2004, 01:16 AM
The incentives would not have to be money although that may be part of it. What sort of incentives or rewards would you as a tech like to have offered?

Norm

infwsdm
02-28-2004, 01:52 AM
I think the incentives of a monetary value have a 'great value' but can also breed greed and 'coruption' as in cheating the customer.

Praise for work well done does wonders for morale, loyalty and confidence.

Having said all that, Techs need to learn to sell their service's on every call.

You go on a no heat service call and notice no filter system, no humidifier, (or whatever). It would be a good idea to (what I call) plant seeds. Try to sell the customer something they could use and/or need rather than creating parts changers.

and of course compensate them for selling 'extras'

DeltaT
02-28-2004, 02:52 AM
School must be out.

What I have noticed over the years is that tech's, specially new ones, love diagonistic tools. Usually they can't afford to buy them or don't even know about them. Good tools make better techs. The company wins and so does the tech.

One company I worked for would give out something every month or so to each tech when the owner would notice we needed a particular tool. The owner walked up one day and handed me a 1/2 knock-out that I still use to this day--and it's now 34 years old. He was the best owner I ever worked for. He believed in each field tech and supported us in everyway he could, especially with training.

hvac45
02-28-2004, 06:19 AM
I use John's answer, commission breeds crooks. If I can get service a little busier to be fair to the techs I want to put them on flat rate, like auto mechanics. Profit strategies already did a book up for me, it ties to our flat rate book. They are paid the same amount of time we charge for, you can base it on any hourly. I used $30.00 an hour. All techs make the same. Callbacks are on their dime. If a tech can't beat flat rate he either needs more help in training or needs to move down the road. I did it for a while a few years ago and had no problem billing 10 hours on an 8 hour day, sometimes more.

otto
02-28-2004, 06:43 AM
Originally posted by JohnB
Here's a program I am fond of.

A boss that knows where he is going and how to get there.
A boss that leads by example.
A boss that shares the wealth created by the company.
A boss that knows there would be no wealth without all the players in the company.
I could go on and on but you get the picture.
A good raise lasts less than 3 months, everyday recognition makes you feel good everyday.
Money is important but if you don't like where you work or feel secure you won't produce and you will leave.

Gotta go with Johnny B on this one. Respest and an "attaboy" on a regular basis is a good incentive and goes a long way. Our company does use these reply cards that the techs give out and they get $1.00 for each good one they get back. They leave it with the customer and the card is postage paid. It asks if the customer is satisfied, would call us again and would refer us. Also it asks if we can offer humidifiers, air cleaners or other equipment. They also get a spiff on service contract sales and renewals. These are all for the residential techs. Commercial techs are paid considerably more and would get a bonus for a sale of equipment or contract sale if we bring the customer into the company but these customers are usually already on a contract or already have a sales engineer assigned to the account.

tinman
02-28-2004, 07:20 AM
anyday of the week. Keep the attaboys I don't need them. Tell what the objective is and the percentage I keep for completing it. As a contractor I do this everyday as it is. Some guys don't like this system, it means they need to hustle. As for compliments most guys like them. I have one guy that asks for a raise everytime he gets an attaboy. I understand everybody wants and need more money but that is not the time to bring it up. It irks me to no end because my employees pay and benifit scale are the highest in my market area. Incentives??

MikeJ
02-28-2004, 08:38 AM
Do you consider driving time when you calculate productivity?

MikeJ
02-28-2004, 08:46 AM
Originally posted by NormChris
The incentives would not have to be money although that may be part of it. What sort of incentives or rewards would you as a tech like to have offered?

Norm

Acknowledgment once in awhile would be nice. You know, the pat on the back or the semi-annual review goes a long way to encourage productivity. Currently, we don't get anything for leads, so unless directly asked, I don't offer to sell. They can call the office where the perks are.

JohnB
02-28-2004, 08:59 AM
Originally posted by tinman
anyday of the week. Keep the attaboys I don't need them. Tell what the objective is and the percentage I keep for completing it. As a contractor I do this everyday as it is. Some guys don't like this system, it means they need to hustle. As for compliments most guys like them. I have one guy that asks for a raise everytime he gets an attaboy. I understand everybody wants and need more money but that is not the time to bring it up. It irks me to no end because my employees pay and benifit scale are the highest in my market area. Incentives??

You made one of my points.
Money isn't everything, you are the highest paid in the area and your guys are still looking for more.
Find out what more is, you'll be surprised when you find out it isn't money.

JohnB
02-28-2004, 09:05 AM
Originally posted by MikeJ

Originally posted by NormChris
The incentives would not have to be money although that may be part of it. What sort of incentives or rewards would you as a tech like to have offered?

Norm

Acknowledgment once in awhile would be nice. You know, the pat on the back or the semi-annual review goes a long way to encourage productivity. Currently, we don't get anything for leads, so unless directly asked, I don't offer to sell. They can call the office where the perks are.

The old fight between the office and the field, does your owner show you the pictures of his new boat,house,car,wife,ect to show you how he's spending your hard earned money.
If your boss want's you to sell he needs to make you feel good about YOUR company.

tlcartman
02-28-2004, 09:38 AM
Originally posted by hvac45
I use John's answer, commission breeds crooks. If I can get service a little busier to be fair to the techs I want to put them on flat rate, like auto mechanics. Profit strategies already did a book up for me, it ties to our flat rate book. They are paid the same amount of time we charge for, you can base it on any hourly. I used $30.00 an hour. All techs make the same. Callbacks are on their dime. If a tech can't beat flat rate he either needs more help in training or needs to move down the road. I did it for a while a few years ago and had no problem billing 10 hours on an 8 hour day, sometimes more.

now thats the way it should be done. i once worked this way as a trial basis for a company. at the end of the year, the owner saw how much i made and stopped it. said it was too much to pay a service tech, then had the nerve to ask why i slowed down after going back to hourly pay.

hvac45
02-28-2004, 09:53 AM
Some of the owners are stupid, If you were making a lot more money, so was he. I lost a job once cause I made to much on commission, they didn't realize I was making them more also.

pinkpanther252
02-28-2004, 09:59 AM
I definitely agree with DeltaT on this one. Giving diagnostic tools as an incentive is an excellent idea. It would motivate others in the shop to at least keep up. That is a great idea>

Stamas
02-28-2004, 10:33 AM
well, alot of it. Tools, Raises, Bonuses (cash), attaboys (along with a couple of "get your head ouuta yer ass's"}, bennies (I started with a manageable level and moved on with that), good trucks, pay that's good for regular hours without relying on OT to make ends meet. Along with being able to do their jobs in manner they can be proud of, (I think). Haven't gone with Flat rate, yet. Comissions, I've seen that go sour real quick. We keep tabs on what the crew does (small co.) and make sure that we bring them along. We also have training, Vo-tech and factory seminars and other. Picked up a few ideas in here too.

infwsdm
02-28-2004, 10:45 AM
Originally posted by hvac45
I use John's answer, commission breeds crooks. If I can get service a little busier to be fair to the techs I want to put them on flat rate, like auto mechanics. Profit strategies already did a book up for me, it ties to our flat rate book. They are paid the same amount of time we charge for, you can base it on any hourly. I used $30.00 an hour. All techs make the same. Callbacks are on their dime. If a tech can't beat flat rate he either needs more help in training or needs to move down the road. I did it for a while a few years ago and had no problem billing 10 hours on an 8 hour day, sometimes more.

30 bucks an hour. I don't see how any company can survive on 30 bucks an hr. And you certainly can't grow on that.

I also looked into profit strategies (and others) but haven't made a decision yet.

tinman
02-28-2004, 11:24 AM
Originally posted by JohnB

Originally posted by tinman
anyday of the week. Keep the attaboys I don't need them. Tell what the objective is and the percentage I keep for completing it. As a contractor I do this everyday as it is. Some guys don't like this system, it means they need to hustle. As for compliments most guys like them. I have one guy that asks for a raise everytime he gets an attaboy. I understand everybody wants and need more money but that is not the time to bring it up. It irks me to no end because my employees pay and benifit scale are the highest in my market area. Incentives??

You made one of my points.
Money isn't everything, you are the highest paid in the area and your guys are still looking for more.
Find out what more is, you'll be surprised when you find out it isn't money.


only one out of several it's a money issue. So I don't see your point.

NormChris
02-28-2004, 11:33 AM
This contractor currently charges the most in the area and pays the most as well. The problem is that there is no source of good technicians in the area for any of the companies to hire so you either create incentives for those you already have to come up to their fullest potential, steal one of two of the better technicians from your competition or hire totally green guys and train them yourself.

So no matter what you do you need to be able to attract the new green guys and give them growth incentives to learn, provide incentives for the best of you competitor to leave and come to work for you and incentives for those you have to improve.

I like some of the ideas shared on this thread so far but has anyone ever worked under a well structured and operated performance reward system? What was it and how did it work?

I want something that allows a technician to come to work and know exactly what he needs to accomplish in order to get a raise of say 5% or 8% or 10%. Or what he needs to do to earn a dinner out for two this month or whatever else an incentive may be.

heating artist
02-28-2004, 12:09 PM
I think the guy has the cart in front of the horse. This is just my opinion but the first and most important thing he has to do is establish trust with his employees. If that isn't done there will be grumbling over who gets what and who is being favored, can cause more animosity than good feelings.

When I managed a business here is what I did. I made the income statement available to employees. They knew on a month to month basis how the business was doing. They knew what the bottom line was for the year to date each month. And they knew that they were entitled to a percentage of that bottom line at the end of the year, depending on length of service, responsibility, and other factors. This was all information that they all had so there was no misinformation, no whispering, no undercutting. If you didn't like it well you better see me about it cause this is the program and I need some convincing to change it.

Of course there were a lot of factors they couldn't control, but lots they could as well. I told them to focus on the ones they could and we will go from there.

As I said earlier it was all based on trust and telling employees the truth. You are putting your business in their hands every day. Why can't they be trusted?

As far as what would motivate me today, surprise me with a paid Friday off. Or take me golfing some day, all expenses paid. I will remember these types of things way longer than a $50 bonus on my check that is direct deposited and that my wife will have spent on dog food before I ever see it.

artist

superheat1
02-28-2004, 12:23 PM
getting a tech to feel respected is the key. a co. i worked for went from 50,000.00 per month with 5 techs to 120,000.00 per month...they acheived this by a.m. training. customer relations, i.e. educating the customer, ( wich leads to sales )and service (stressing being the absolute best) and yess commisions. youll have to weed out the bad apples, but its worth it in the long run. self respect and self esteem through working for an elite team makes a differance. ( that one hour each a.m. was PAID )

slimwoodie
02-28-2004, 01:39 PM
work, or get fired ?? that's what we use ...

condenseddave
02-28-2004, 03:26 PM
Originally posted by slimwoodie
work, or get fired ?? that's what we use ...

Same here. Don't see a need to offer "extras". That is thought up by someone with an entitlement (ie WELFARE) mentality.

NormChris
02-28-2004, 05:19 PM
First of all, there is no welfare mentality to a system that allows technicians to move up the ladder and know exactly what it takes to do so. That is a true incentive program not welfare.

Since this community of about 60,000 people has not a single unemployed technician to hire something must be done to encourage seasoned technicians to more here. Or the contractor can hire green people and train them himself.

Either way the objective is not to create some incentive system that is used to "Bleed" the technicians in an effort to overwork them. That is not at all the case. When you have guys who go the extra mile they should be rewarded. If you already pay them well (highest in the area) and they are happy to remain where they are, fine. But if the technician wants to know what what it takes to move up, earn still more or gain additional rewards then they have the option to participate in the incentive program. The choice is theirs.

When new green guys are hired they will be used as labor but will be offered in house training. The incentive program will allow them to move into technician status as they learn and grow. The more they are able to produce for the contractor the more this contractor wants to share with them. This contractor is willing to spend some money (invest) in developing a voluntary incentive program that allows everyone in the company to know exactly what they can do to get a raise, move up the ladder or earn perks.

This contractor is already a great employer who has earned the trust of his employees and he personally cares about them. So now he wants to do yet more for them. He wants to share any growth and increase in profits with them.

The idea is also to cause other technicians in the area to want to work for him rather than his competition.

With that in mind what do you suggest for incentives or an incentive program?

Do you know of any contractor with such a program I can contact?

Would you not want to work at a place where you are already well compensated but know exactly what it takes to earn more?

Norm

NormChris
02-28-2004, 05:28 PM
By the way, this contractor is turning away work on a regular basis because he and all the other area contractors do not have the qualified manpower to perform the work. There really is a technician shortage. Now what is the solution?

tinman
02-28-2004, 05:28 PM
Are you talking service or install?

One company used a percentage. 33% of the total job after deducting direct job costs, this was if you sold the job. Otherwise it was 27% after deducting the direct job costs. call backs were on the techs dime. Laborer costs came out of the techs percentage. On service they went 25% of the call after deducting parts and a service call.

Dowadudda
02-28-2004, 05:42 PM
I wish we all were simply self employed and subbed to each other for help and work. And then I can actually then have a young man with me for four to five years, right at my side, truly learning how to be a technician. And As it goes on and he improves you give him a better living than he could get anywhere else. That's what's missing folks. The trade doesn't need all this horse**** business about attaboys, good for you's, ect ect. It needs to go back to learning the trade from a true journeymen of the trade.

NormChris
02-28-2004, 06:00 PM
Originally posted by Dowadudda
I wish we all were simply self employed and subbed to each other for help and work. And then I can actually then have a young man with me for four to five years, right at my side, truly learning how to be a technician. And As it goes on and he improves you give him a better living than he could get anywhere else. That's what's missing folks. The trade doesn't need all this horse**** business about attaboys, good for you's, ect ect. It needs to go back to learning the trade from a true journeymen of the trade.

And that is why one of my assignments is to ride with the technicians who need help and show them how to work, identify their needs, fill the gaps in their knowledge and skills, show them how to properly deal with customers and bring them along and help them grow. I will be rotating between technicians on the job as well as holding inservice training back at the shop.

In addition the idea of the growth incentive plan is to be in place so they have something to aim for. Want a raise? Here is exactly what it takes. And, the steps are reasonable and achieveable.

Norm

tinman
02-28-2004, 07:01 PM
Have you checked out Chris Reaks book Tech to Tech?

NormChris
02-28-2004, 09:00 PM
Originally posted by tinman
Have you checked out Chris Reaks book Tech to Tech?

I have not. But, thanks for the reminder. I will order a copy.

Norm

workinlate
02-28-2004, 09:12 PM
A 401k maybe I don't know after years of service pick up the tab on the insurance???? Let's see TAKE CARE OF THE EMPLOYEES AND THE EMPLOYEES WILL TAKE CARE OF YOU!!!!

NormChris
02-28-2004, 09:17 PM
Originally posted by workinlate
A 401k maybe I don't know after years of service pick up the tab on the insurance???? Let's see TAKE CARE OF THE EMPLOYEES AND THE EMPLOYEES WILL TAKE CARE OF YOU!!!!

Yup, they already have a 401k and insurance. They are the highest paid technicians in the area and the contractor is the most expensive in the area. Has plenty of business and has to turn business away because he can't find qualified technicians.

tinman
02-28-2004, 09:30 PM
I highly dought he will get more production out of his crew. He needs to solicit techs from different areas that may be ready for a change and relocate there. There is no incentive to be more productive.

In a industry that claims an average of 2% profit before taxes how does a company increase production by heaping on the benifits and pay to their employees. That could bankrupt a company that is that close to the edge. I'm not saying that is the case with your contractor. it's just a general statement.

NormChris
02-28-2004, 09:40 PM
Let me put it this way. Lets say that out of a crew of 25 technicians there are 10 young technicians who are still learning the trade. The 10 younger guys are paid for an 8-hour day but only 5 of those hours are actually billable to the customer. The seasoned techncians are able to produce 8 hours of billable time for 8-hours on the job.

Now, the objective is to bring up the productivity of the younger technicians to eventually match that of the seasoned technicians.

Norm

swat
02-28-2004, 09:40 PM
Company I am at has levels or degrees of techicians according to the company. Levle one is green 2 is inschool and pretty green still, 3 is out of school and ready to learn, 4 is school complete and experienced tech can handle most situations and 5 is basicly a sr. tech and can handle any problem. Pay goes up with level obviously and I don,t know what level 3 and lower pays but level 4 pays between 17 and 20 but I would guess 3 is 14-17, 2 11-14, and 1 7-10.

There are list of duties and responsibilities for each level and can possily get them if you are interested but it is a basic outline like i said and the only real difference is that level 4 is responsible for every one under him and he is more or less boss on the job and the ne to answer questions if they rise. Service manager is obviously the boss of those but I like the program. Very minor emphasys on commision although there is still some for getting sales ppl out to jobs as well as getting ppl to sign up for maint progs. I like the idea of tools for sale and training. Where I am has weekly training or at the very least a Q and A session every friday morning. 'Attaboys' handed out at the same time and in front of the other techs too. Makes your chest swell if that is what you are into. I like Johnny's first answer though. A boss who gets out there and bust the hump with you will get more respect and work out of his employees than any other kind of boss. I had a boss who did the exact opposite and he has since lost 4 companies to bankrupcy in 7 years and gone through divorce and many technicians. He is a broken down shaddow of what his tallents are but no one respects him at all.

swat
02-28-2004, 09:44 PM
Originally posted by NormChris


Let me put it this way. Lets say that out of a crew of 25 technicians there are 10 young technicians who are still learning the trade. The 10 younger guys are paid for an 8-hour day but only 5 of those hours are actually billable to the customer. The seasoned techncians are able to produce 8 hours of billable time for 8-hours on the job.

Now, the objective is to bring up the productivity of the younger technicians to eventually match that of the seasoned technicians.

Norm

training and ride-a-longs to show them how the older guys do it and how it should be done. Week at a time if need be and eventually it will be picked up. Don't do just one week though. 1 week every other month or every month until they get it right and drop them a dollar or 2 when they are riding along with sr. techs until they do get it right. Once they do get it right give them a nice 2 or 3 dollar raise and a hell of an 'attaboy'.

tinman
02-28-2004, 09:52 PM
Why don't you interveiw the fifteen seasoned techs and ask them what they felt their turning point was that made them a seasoned tech. Then duplicate it.

slimwoodie
02-28-2004, 10:20 PM
did i misunderstand your post entirely ?? why coddle these "halfway" tech's ??? it's 8 for 8 .. ifn' ya can't do the job, and make the company money ... why in the Great Wide World .. should they get an "incentive" ??? work , or get fired ! .. didn't Trump say that ??

NormChris
02-28-2004, 11:17 PM
LMTD:

Good to meet up with you again. I am here casting (fishing) for ideas to see if someone comes up with something I have not. I am also trying to see what other contractors have instituted. Why re-invent the wheel?

Norm

NormChris
02-28-2004, 11:42 PM
Originally posted by lmtd
A good plan Norm.

You get bored with it, shout at me, adding another slot to our program. It is getting a lot better and existing the staff is quite talented. You would make a great addition!

Good to see you back.

Actually, I have never stopped thinking about coming down and joining you and your staff. It crosses my mind weekly and is still tempting. I did wonder if you still had any openings. Perhaps I should just come down for a visit.

Norm

Dowadudda
02-29-2004, 09:56 AM
It's a tough question for me, since I currently own a small show. And still struggle once in awhile to pay the bills, meaning bennies like medical insurance and such. But. Prior to my life now, I was a tech who was paid very well. Norm, I had everything. New van, new laptop, great money ($31.00 an hour). All medical, dental optical and very low out of pocket for me. I was working on the coolest **** there was. I had it better than most union guys. But you know what, if that phone rang at 2 am, I was in the truck and on my way before the phone hung up. I never once refused or *****ed openly about it. Double time is too much cash to put down. And when times were good, everyone thought it was never going to end. I took my money and sunk it into a house and other non stock market investments. Let's not even get into technical stuff. My paperwork was clear and straight and neat and orderly. My van was the same. Washed and armor alled every week. My hair was always cut, my teeth brushed and showered. I learned to deal with people from many levels up the management chain. I studied Dale Carnegie.

You get what you get and if you come a cross a guy like me, pay em. Cause for me, at the end of the day. I wanted the house on the hill. I got it. And my boss got a great all around tech for that.. You aint going to make techs better by patting them on the back. You need to look for guys who veiw there job as a career and like money. You don't want to reinvent the wheel? Then don't. Just find the right guys. And you might have to find them elsewhere and pay some coin upfront to move them there.

swat
02-29-2004, 09:56 AM
Slim like he said there just isn't an abundance of volunteers for th position. Most of the ppl in the area he lives in are not qualified and or not even interested.

jrbenny
02-29-2004, 10:59 AM
Originally posted by NormChris

Originally posted by lmtd
A good plan Norm.

You get bored with it, shout at me, adding another slot to our program. It is getting a lot better and existing the staff is quite talented. You would make a great addition!

Good to see you back.

Actually, I have never stopped thinking about coming down and joining you and your staff. It crosses my mind weekly and is still tempting. I did wonder if you still had any openings. Perhaps I should just come down for a visit.

Norm

Welcome back, Norm. I've tried to reach you to no avail. The email addy that I have for you isn't working. Drop me a line... rbenefiel@ the little red house's domain.

Steve Wiggins
02-29-2004, 12:15 PM
Dow you nailed it buddy when you said, "we should all be one owner companies and sub to each other". This is the only way you will get close to 100% motivation.

Myself and another one man shop work together all the time. Two heads are better than one even if one is a goathead. The whole can be better than the sum of its parts.

But since there are large companies already out there Performance Feedback is the best method of motivation IMO.

Feedback is telling them they did a good job and maybe listing their gross sales on a chart. Performance feedback on the other hand is allowing them to compare their performance to the other techs on the team.

I vision a company with several service techs as bonafide employees and imagine each tech as his own seperate branch of that company. The tech will be the first responder, diagnose the situation, recommend a solution to the customer, give pricing options to the customer, oversee the work, collect the money when satisfied with the job. There is no need for a "service manager", his only purpose is to create hatred in a company. The tech will have his initials listed on the invoice and his gross income numbers will be posted on the wall along with everyone elses (a simple bar graph would be fine). If you want to get real specific you can post his net profit too (but that would require more paperwork). This way a business owner can see at a glance who his best producers are. This information can be used to decide on a monetary reimbursement such as hourly raises or x-mas bonus etc. You see the motivation will NOT come from the money but rather from the daily bragging rights :) Extrinsic "Atta Boys" will not have near the motivational effect as intrinsic self worth type motivators.

Now lets say that the tech responds to a no cooling call. He finds an old system that really needs replacing. He knows that his customer is a redneck, beer drinking, bubba goof and the tech is a well read educated anal geek so right away he is worried about a style clash. The tech might decide once his diagnosis is finished he needs sales support. So he calls for a company salesman to come out and relate to the customer better. The salesman sells the job with the tech standing by his side for technial support. This keeps salesman from spouting off stuff that is impossible to deliver. Then the tech sees that the job will take three men so he calls for support first thing in the morning. Next morning tech shows up with 3 installers and lines them out. At this point the tech is semi-free to go run another call. When the job is done the tech comes back, checks out the job to his satisfaction and collects the money from the customer. Customer has one main contact person and that is the tech. The tech is able to list his gross (or net) income on that invoice. It is his baby from start to finish and the pride in his own job along with the performance feedback will be all the motivation you can expect and need.

In a different situation the tech might decide that he can sell his own job and do the install himself. It really depends on the work that needs done and what time of year it is (busy season) etc. My point is, it needs to be the techs decision on who supports him on that paticular job; it's his baby, he needs to rock it.

[Edited by Steve Wiggins on 02-29-2004 at 12:27 PM]

tric_student
02-29-2004, 12:41 PM
Greetings all!
I am a student at Tri C Community College and have been given a project I know nothing about.
The Course I'm taking is Operations Management. The Operations is HVAC. I am at a loss as to where to find information relative to the following.

Job costing
Tool Tracking in the field
Job bidding

Anyone willing to help out a student by leading her in the right direction?

DeltaT
02-29-2004, 06:24 PM
Originally posted by Steve Wiggins
Dow you nailed it buddy when you said, "we should all be one owner companies and sub to each other". This is the only way you will get close to 100% motivation.

Myself and another one man shop work together all the time. Two heads are better than one even if one is a goathead. The whole can be better than the sum of its parts.

I have been working this way for a number of years. And it's perfect with the right owners. We each charge each other our going rates and we each are glad to pay because we get what we pay for and we understand the costs incurred in charging that fee.

Two other ingredients not talkied about topics here. One, for years now any trade or any job that required hard work and dicipline has not been promoted like it use to so the labor pool is pretty well empty compared to what we think we need. Why should someone just starting out do the kind of work we do considering safety, risk, cost of tools and physical labor when they can get more money, more benefits, etc sitting behind a computer in an A/Conditioned office?

Two, I don't know of one large company that actually gives good incentives anymore. Most are micro managed by a new breed of bottom line management based on making the numbers look good at the cost of the technicians and customers.

And, I don't see much changing although I am encouraged that some of the tech schools enrollment is increasing. My service buddies new son-in-law was in journalism. He had luch with us and shortly after he enrolled in a local 2 year HVAC course. He actually works with me now between semisters and loves our business(so far). On the other hand, his dad is a retired shop teacher so he has fix'n things in his blood already.

The Penguin
03-01-2004, 12:15 AM
I worked for a commercial refrigeration co a while ago (15 yrs ago) and the owner started a bonus plan:

1 change a drier =$5 (had allot of problems with drier not being changed)

2 correctly fix a call the first time =$ 10
3 keep truck clean inside and out =$ 5 per week (checked by sev mgr)
4 One with the least call backs per month = 1 day off with pay the next month tech could choose day
5 complete quoted repair on time = $10
6 complete quoted install on time = $ 25
7 Customer call to praise work = $10
8 customer write a letter to praise work = $25
9 weekly paper work correct =$20

things that could reduce bonus:

1 dirty truck less $5
2 call back =$10
3 execessive call backs = extra training on techs dime
4 At fault Accident in truck less $250
5 go over on quoted repair or install with out adequate reason =$25
6 customer call complaint $10
7 customer write complaint $25
8 poor weekly paper work =$20
9 late for work without reason =$10
Oh yeah you wouldn't go below a 0 balance so you would not have to pay the boss for working there

Any way thats all I can remember now I think there was more but the bonus program was not geared towards selling (the drier bonus was because allot of techs wern't changing driers when opening a ref sys up and moisture was a problem causing call backs) I think it was good
I made an extra $1000 ONE YEAr
Hope this helps Norm

[Edited by The Penguin on 03-01-2004 at 12:18 AM]

Senior Tech
03-01-2004, 12:57 AM
We have a "spiff" program...examples as follow:
Maintenace agreement: $15 per year, per system
Replacement Leads: $35 per lead, plus 2% of sale
Accessory sales: 5% of selling price

As stated by others, if this type of incentive program is not monitored it can be abused by those who are not honest, it just goes hand in hand with striving th employ those who have a high sense of integrity and honesty. We emphasize those qualities plus many others at weekly training meetings, believe it or not we can usually weed out those with no morals as it shows quickly in almost all aspects of their work...not just those where a spiff is possible.

tangogreen
03-01-2004, 10:02 PM
I think the varied responses from everyone here should give you the most insight into what to do. Some people need "attaboys", some people are motivated by money alone, and others need to see how they contribute to the company. Bottom line, every tech is different, and no incentive program is going to take the place of good leadership. I say leadership instead of management because that is what is usually lacking. We have one tech who told me "I'd eat a **** sandwich everyday for $100K a year", and another who said "As long as I can pay my bills, I'm fine, I just want to go home happy at the end of the day". No incentive program will motivate everyone.
That's not to say I don't believe in spiffs, days off, or commissions, but they are not a cure-all for labor shortages. IMO, happy techs, whether it be money or otherwise, will motivate others to want to join that company, and the industry in general. Just like happy customers, word-of-mouth is your best and strongest advertisement.

NormChris
03-03-2004, 01:03 AM
Thanks Tango, you have summed up the general feeling pretty well.

Norm

R12rules
03-27-2004, 12:54 PM
Originally posted by superheat1
getting a tech to feel respected is the key. a co. i worked for went from 50,000.00 per month with 5 techs to 120,000.00 per month...they acheived this by a.m. training. customer relations, i.e. educating the customer, ( wich leads to sales )and service (stressing being the absolute best) and yess commisions. youll have to weed out the bad apples, but its worth it in the long run. self respect and self esteem through working for an elite team makes a differance. ( that one hour each a.m. was PAID )



heating artist said this;

"This is just my opinion but the first and most important thing he has to do is establish trust with his employees. If that isn't done there will be grumbling over who gets what and who is being favored.

As I said earlier it was all based on trust and telling employees the truth. You are putting your business in their hands every day. Why can't they be trusted?

As far as what would motivate me today, surprise me with a paid Friday off. Or take me golfing some day, all expenses paid. I will remember these types of things way longer than a $50 bonus on my check."

Stamis said this;
"Tools, Raises, Bonuses (cash), attaboys (along with a couple of "get your head ouuta yer ass's"}, bennies (I started with a manageable level and moved on with that), good trucks, pay that's good for regular hours without relying on OT to make ends meet. Along with being able to do their jobs in manner they can be proud of."

AAAAAAAAAAAMEN!!!


Plus, to just add my two cents worth...

I think each and every tech needs to be asked what they need in order to accomplish their tasks more fluidly.

Synergy is key to making the company the best at it's work.
And do not stop with just the technicians!

Have a private consulting team come in and interview each employee. Have them inquire what the company is doing correct. Have them inquire what could be changed to accomplish improvements to what is already working nicely. Ask these interviewee's what changes they would like to see the company make. And for what purpose would those changes be helpful.

Ask if they see ANYTHING that slows the process down. ANY process!!!
Ask for ideas.

Then go to each and every employee who works there, taking them aside and making inquirey. Make it a private offsite lunch, a place of their own choosing. Have the consultant make a scheduled time and date with each subject to be interviewed so each person will know in advance they are about to be asked for ideas about the company they work for.
Let them all know, in advance, they are being asked BECAUSE they are the one's who would have the best idea of what to do to make improvements in the company they work for.
Make sure it is said in advance that the purpose of this inquirey is NOT to find fault! It is not to set up peeves and gripes. It is NOT to locate bad employees! It is only to make improvements to what is there already and work things out to be smoother!
Make each interviewee feel like they are getting to make a difference in their company's operation. Make these people feel special!!!

Then, take this data, these ideas, concepts and do a feasibilty anaylisis on them.
THINK OUTSIDE THE BOX!!!


Then have the consultant company make a report to the company owners/ managers and lay out several options and scenarios to them, VISUALLY depicting the changes and areas of improvements you are sugesting.


If you want to accomplish more to do's in a given period of time, you must either hire more people or else make the one's you've got to become more effeceint.
To make them more effeceint you must remove the stumbling blocks from their path.
You must make their movements to become fluid and spontaneous.
You must make each person there to stand up for one another. To support one another, despite their own personal sacrafice.
There is more to say, but I've used enough bandwidth already by now...

[Edited by R12rules on 03-27-2004 at 01:24 PM]

lakeerie
03-27-2004, 01:15 PM
COWORKER BONUS GUIDE



$2.00 shall be paid to anyone who collects for a service call, at the time the service is completed (COD).



$5.00 shall be paid to any co-worker who has a Door-Hanger coupon redeemed that has their name or number clearly printed on it.



$5.00 shall be paid to any co-worker who has a coupon redeemed that has their name or number clearly printed on it.



$10.00 shall be paid to any co-worker who has a customer use our services for the first time as a direct result of having a business card handed to them by that specific co-worker.



$10.00 shall be paid to any co-worker who sells an SEA; per system, per year.



$10.00 shall be paid to any co-worker who produces a sale by any other means not listed herein.



$10.00 shall be paid to any co-worker who receives an unsolicited letter of praise from a customer.



$15.00 shall be paid to any co-worker who sells a comfort enhancement such as: humidifier, high efficient air cleaner, programmable thermostat, attic power ventilator, etc.



$15.00 shall be paid to any co-worker who fully completes a Customer’s Proposal Request form (CPR), quickly turns it over to the Systems Consultant, and the CPR results in an appointment. No sale required, just turn in the form.



$20.00 shall be paid to anyone who collects for an installation, at the time the service is completed (COD). If more than one person is substantially involved, the fee shall be split equally between crewmembers.



$30.00 shall be paid to any co-worker who sells a 10 SEER Rooftop Packaged Unit or condensing unit and any 80% single-stage furnace.



$40.00 shall be paid to any co-worker who sells a 12 SEER Roof Top Packaged Unit or condensing unit, or any 80% two-stage or any 90% furnace.



$50.00 shall be paid to any co-worker who sells a 14 SEER condensing unit.



$100.00 shall be paid to any co-worker who recommends a qualified friend to us for employment. This person must be hired for a permanent position and last our 90-day orientation period.

R12rules
03-27-2004, 02:32 PM
Originally posted by NormChris


Now, the objective is to bring up the productivity of the younger technicians to eventually match that of the seasoned technicians.

Norm

Norm, now you have shared some more input. Good. Now the challenge apears to be in raising up new guys from within the company. Now we have some numbers to work with.

Hire Qualified Mentors who can ride with and pass along the trade secrets to the young guys.

Not just any tech can be a Mentor. Some have the ability to teach and share knowledge, most do NOT.

Mentoring is a very special thing. It requires relationship and motivation. It requires someone going out of their way to pass along what he or she learned, to someone who is in a different spot in their life. To someone who dont listen as well as their mentor would hope they did. To someone who is from a totally different generation than their mentor is from.

Part of the challenge is to pick some seasoned technicians who can share information with the younger guys. They would not necessarily become thier Mentors, but would do ride alongs and point out things to the newbies.
Next, the Mentor(s) you hired would take these newbies and augment that ride along knowledge as they receive it. The Mentor could become the catalyst to the newbies.

R12rules
03-27-2004, 03:07 PM
Originally posted by Steve Wiggins
Dow you nailed it buddy when you said, "we should all be one owner companies and sub to each other". This is the only way you will get close to 100% motivation.

Performance feedback on the other hand is allowing them to compare their performance to the other techs on the team.

I vision a company with several service techs as bonafide employees and imagine each tech as his own seperate branch of that company. The tech will be the first responder, diagnose the situation, recommend a solution to the customer, give pricing options to the customer, oversee the work, collect the money when satisfied with the job. from the daily bragging rights :) Extrinsic "Atta Boys" will not have near the motivational effect as intrinsic self worth type motivators.

In a different situation the tech might decide that he can sell his own job and do the install himself. It really depends on the work that needs done and what time of year it is (busy season) etc. My point is, it needs to be the techs decision on who supports him on that paticular job; it's his baby, he needs to rock it.

[Edited by Steve Wiggins on 02-29-2004 at 12:27 PM]

If the tech is "rocking his own jobs", is he or she, still a team member?
If we are talking independant people doing their own calls and rocking their own jobs, then they develope this Dirty Harry attitude and before long they feel their poop dont stink. They view others as being different than themselves.
They have this "them and us" mentality.

Teamwork requires team players. People who are comfortable with replying upon other people in order to accomplish the most for the company.

I worked for a company in Austin who promoted single mindedness in their field service techs.
I will be respectful here by just saying... it was counter-productive!

However, I do like Dow's idea of all of us subbing to one another. That would work. And it would solve a whole lotta paperwork as well as reduce un-employment and other such rubbish.
It would even make Dave happy, because everyone would be underneath the auspices of "work or get canned".
SYNERGY, the product of the whole is greater than the sum of any of it's parts. hmmmmm if you believe that is possible. If you think that is desireable, then you need to forget about the independant service man concept. And you need to focus on the team concept. Team Relationship. Team Reliance. Team Work. Team Effort.

Unfortunately for many, not all people are created with the exact same talents and knowledge and I.Q..
So that means, guys like Dave, Dow, DIce, Ice and some others, myself included, we dont all need soemone to show us how to suck duck eggs. So to speak.
We dont need to be told how to get dressed in the mornings. We dont need to be told to take the van into the lube and tune shop once a month for maintenance.
We are self starters and self reliant.

For those who are not type "A" personalitites, they dont do well as contractors.
And this is the way God made our industry. Some are outgoing and sales types, others are not. However, the one's who are not necessarily sales types do not need to be set aside, they can be useful too. Just like in a team effort, team sport, team workforse ... all members can be of tremendous value. "SYNERGY"


Myself, I lean more towards wanting to work around more people than machines these days. I used to be the other way around.
Funny how age and experiences change people.
I guess we become seasoned with time.



hmmmm; "working with a goat head".... wonder if he means he is working with Diceman or "Jack"?

coolwhip
03-27-2004, 04:08 PM
10% commission on all parts installed and 10% on all equipment installed. $100.00 finders fee for any new customers buying equipment. Profit sharing, company vehicle to take home, good medical, dental, and optical, tool allowance, 5 personal days, 5 sick days, 1 week paid vecation after 1st year, 2 after the 2nd, and 3 after the fifth. All of this is in addition to the 15.00-25.00 per hour. THESE ARE GOOD INCENTIVES CONDIDERING HOW HARD WE WORK!!!

alpha480v
03-28-2004, 06:31 PM
Originally posted by senior tech
We have a "spiff" program...examples as follow:
Maintenace agreement: $15 per year, per system
Replacement Leads: $35 per lead, plus 2% of sale
Accessory sales: 5% of selling price

As stated by others, if this type of incentive program is not monitored it can be abused by those who are not honest, it just goes hand in hand with striving th employ those who have a high sense of integrity and honesty. We emphasize those qualities plus many others at weekly training meetings, believe it or not we can usually weed out those with no morals as it shows quickly in almost all aspects of their work...not just those where a spiff is possible.


This sounds like service experts maybe?

Ammonianite
03-28-2004, 07:16 PM
The company that I work for has an incentive program that rewards techs for reccommending replacement of obsolete
or major defective equipment. The reward is usually cash
dollars. Unfortunately, this often leads to individuals condemning components or equipment unnecessarily. One technician invariably gets the most cash every month.
Management thinks this is great, but most of the other techs are well aware of the fact that if this individual gets "stuck" on a service call, he will condemn the equipment (For example, I was sent out to assist him with the replacement of a condensing unit for a walk-in freezer.
I asked him why this unit was being replaced and he responded that the reciever had an unrepairable leak in it.
I asked him if he tried tightening the packing nut on the reciever service valve. He responded that the valve did not have a packing nut. I looked at the reciever laying on the floor and it indeed had a service valve with a packing nut. Furthermore, the reciever looked new with no signs of leakage. I helped him install the new condensing unit.
We fired it up and the unit pumped down and shut off. Later
found a broken wire going to the liquid line solenoid valve
which was probably the original problem. THE NEXT SERVICE MEETING HE COLLECTED HIS REWARD!)

Bottom Line: One must be careful with what type of incentive program one initiates. Remember that human beings have a widely diverse moral fiber. Some people will exploit a system taking advantage of both the customer and company alike.

Steve Wiggins
03-29-2004, 08:11 AM
Making money by rewarding with money doesn't even make sense and won't work.

Reak
03-29-2004, 09:00 AM
Originally posted by NormChris

Originally posted by tinman
Have you checked out Chris Reaks book Tech to Tech?

I have not. But, thanks for the reminder. I will order a copy.

Norm

Norm,
I will send it out today. I am sorry. Forgot all about it.

Thanks
REAK

NormChris
03-29-2004, 10:51 AM
Thanks Reak, this has been a good discussion with lots of very different points of view to consider. The contractor I am working for is pretty savy, has a great deal of experience and has been giving this a great deal of thought for some years now. He finally decided to hire someone to come up with a plan of action and work the plan. I appreciate all the input from you guys.

Norm

thehumid1
03-29-2004, 12:02 PM
Pay techs strictly on commission 30% of labor billed 10-15% on parts/equipment sold. Callbacks they do for free as there is no billable hours makes em a bit more careful.

R12rules
03-29-2004, 03:49 PM
Originally posted by thehumid1
Pay techs strictly on commission 30% of labor billed 10-15% on parts/equipment sold. Callbacks they do for free as there is no billable hours makes em a bit more careful.

Makes sense.

Would you include service call charge?

Would you go gross sale of parts/equip ? Or after parts are paid for?

If a guy had back to back calls, and the windshile dtime didnt kill him, or her, they could make fifty an hour on simple service work.

R12rules
12-11-2004, 02:34 PM
Originally posted by tangogreen
I think the varied responses from everyone here should give you the most insight into what to do. Some people need "attaboys", some people are motivated by money alone, and others need to see how they contribute to the company. Bottom line, every tech is different, and no incentive program is going to take the place of good leadership. I say leadership instead of management because that is what is usually lacking. We have one tech who told me "I'd eat a **** sandwich everyday for $100K a year", and another who said "As long as I can pay my bills, I'm fine, I just want to go home happy at the end of the day". No incentive program will motivate everyone.
That's not to say I don't believe in spiffs, days off, or commissions, but they are not a cure-all for labor shortages. IMO, happy techs, whether it be money or otherwise, will motivate others to want to join that company, and the industry in general. Just like happy customers, word-of-mouth is your best and strongest advertisement.


Amen!!!

otto
03-23-2005, 03:32 AM
For the owners perusing this thread. I joined the company on Jan 31st 2004 and it's now March 23rd and I am still waiting for my annual review. Don't let your employees wait for their review. I may be handing in my truck keys tomorrow and besides a lack of work, which will be the major reason, this "oversight" that I have brought up to my superiors several times, is a big point of discontent.

fat eddy
03-23-2005, 06:47 AM
Originally posted by NormChris

Technician Incentive Program


I have been asked by an HVAC contractor to help him increase the productivity of his technicians. One of the items we discussed was developing a technician incentive program. Raises and other benefits based upon increased productivity. We already have a great tracking system that shows the billable time for each technician as opposed to the hours the technician is paid for.

I am interested in finding if other service contractors have a technician productivity incentive program and how it works.

How about where you work? Do you have an incentive program and how does it work?

What sort of an incentive program would you like to have?


Norm



There are a couple of things that a service manager can do to increase the efficeincy of a technician,

One is to get to know that technicians strengths and weaknesses, putting a technician in a position where he is not comfortable will adversely affect his productivity.

One is to have plenty of PM work available for the technicians, PM work should be 100% efficeint.

Time and material calls should be given to these types of techs also.

Only put your most efficeint techs on warranty, call backs,or quoted work.

Give etchs a chance to be efficeint, expect that they should bill 32 to 36 hours a week,and give them down time to to organize, do paperwork,take care of truck, or just BS with the other guys, or the manager about accounts and calls or work related stuff, or even just let them go home. its not a big deal.

Don't give techs a job on Friday's that will get them stuck working late or leave them with a long drive home.

Realize that there are as many different personalities as there are technicians,,and the better that a service manager knows his techs and their needs the better that tech will be.

I don't beleive in cash incentives for techs to bring in more cash,

I beleive that if they have chosen to become techs, that they have put themself into an arena , where they should be judged by their ability to maintain accounts, their technical ability, their ability to lead, and their ability to relate with customers and other employees.

I don't expect the techs to be salesmen.but I don't want techs to walk away from a customers needs, they do not have to sell, just collect the pertinent data and turn it in,,,

Don't ever put road blocks in front of a technicians will to grow or improve himself,,techs at our company aberage 12 years with this company, with the shortest tenure being five years,they don't up and leave, because this is where the grass was truly greener.....This mentality works with the numbers we run 15% pure profit that gets shipped over to the owner,,The owner spends less than twenty hours a year dealing with the service dept.

New trucks , and an open account for tools doesn't hurt morale either.




[Edited by fat eddy on 03-23-2005 at 07:05 AM]

Dowadudda
03-23-2005, 07:47 AM
I should quote both of my previous posts in order for what I am about to say make sense to everyone.

I have met service and construction guys so talented, that they don't need a job. They simply are sought after for a specific job. I know one refrigeration construction guy, he is bouncing all over the country all the time, working for companies as their superintendant to run a grocery store projects or other large refrigeration. He does better than 120,000 a year. And worth every dime. When he hands that job over, his record is incredible for in warranty issues due to installation faults. It's piped right, it's engineered or rather he reengineers the job. I seen this guy send a 200 horse brand new screw rack, right off the semi put back on the semi to send back to Hussman.

I have known numerous service guys that way as well.

I don't understand why most of these men I know don't try working for themselves because they would leave the bull**** behind and put the money in front of them. The trade is so damned cheap these days that anyone employer contractor can not pay a good tech what he is truly worth. Just can't do it. With all the costs it takes to have trucks, employees and contract in this business, there are so many people in your pocket already that the tech isn't being compensated fairly. And then expected to put up with so much bull****. I was in that rat race for a long time.

It just don't equate in my mind. If I need to put up with your ****, your polotics, work on **** equipment, the list can go on and on. By the time I get home at night I am stressed, not alot of money in my pocket and I feel I have no control over my own career or destiny. If you screw it all up I am out of work. So you pat me on the back and give me an atta boy. Great. Thanks. So you kick my ass all the time, pay me okay, treat me like trash, give me no respect for what I know and what it took to know it, but you think you can solve all that by telling me "good job".

The best damn thing I ever did was go to work for myself. I can not even come close to comprehending why some of the better creme of the crop guys don't. I don't need your crap, your line of bull****. I need fullfillment. I need meaningful work. I need to give my customer what they pay for. I need to control my life. I need to control the work I do. You can not do any of this working for someone else period.

There is no career ladder in this business. Yeagh you might be a tech, then you might be a service manager, maybe an estimator. Who gives a **** about that if someone is going to kick your ass all the time and pay you like crap. Beat you down cause the customer sucks and not paying. Of course, it's the techs fault. There aint but a handfull of contractors out there that truly in their heart beleive in taking care of you. The bottom line is, they'll drop you like a brick if needed.

And here is where I am the most grounded. The owner will always eat before anyone else. For me and my peace of mind, I had to become an owner so I could live that way.

jhd1234
03-23-2005, 10:25 AM
Lots of good answers here. What I think got lost in the shuffle was Norm's original question was how to increase productivity although I'm not sure that's all he was asking.

1. Training- no need to comment other than to say that trained techs [those who can THINK that is] don't waste time on diagnosing.

2. Well stocked trucks- having parts on the truck increases sales and one call completions. I can't count the number of times that having the parts readily available sold the job right away. When I was running a refigeration company it was a daily dogfight get the guys to stock their trucks.

3. Smart dispatch routing. This applies more to companies that cover large areas.

Some of these items are plain common sense but as the saying goes, "Common sense isn't so common".

MechAcc
03-23-2005, 11:41 AM
No attaboys???? :eek:

Ever notice that frown on your wife's face when you say "Honey you look great" or "Man that is a great lasagna you made" :rolleyes: No you don't you get rewarded with a great smile, unless you've been at war with her.

Sure maybe you have that deep satisfication that you went out and fixed a problem that has been stumping the last three service techs. But when your boss tells you that was great work in finding the problem some of you are telling me that it doesn't affect your self worth?

And self worth makes people want to do a better job.

fat eddy
03-23-2005, 04:14 PM
Jhd,,

I was answering Norm's question I think we all were, I think we were trying to tell hiim that it is not done by shuffling numbers around on a spreadsheet,and that it has more to do with the way you treat the tech.

Attaching dollars as
an incentive for a tech to go sell something is telling that tech to be a salesman not a tech.

bluetooth751
04-28-2005, 12:40 AM
It's amazing how competitive the employer marker has become.

I have an incentive how about I give you a job and provide you with a job everyday for 40 hours a week. Unfortunately thats just not good enough anymore.

You have to have
Training
insurance
paid holidays
sick days
personal days
vacation
employee picknics
401k
IRA contribution
profit sharing
kiss your employees a$$ day

The fact is we are spoiled.

Working hard for something is what this nation was built on. Now everthing is built overseas and across our boarders.

This thread sums up why corporations don't use our nations workers.

I would take a mexican that just crossed the boarder in a heart beat. So would many corporations. The benefit to the mexican is still the JOB!

oil lp man
04-28-2005, 07:00 AM
Originally posted by bluetooth751
It's amazing how competitive the employer marker has become.

I have an incentive how about I give you a job and provide you with a job everyday for 40 hours a week. Unfortunately thats just not good enough anymore.

You have to have
Training
insurance
paid holidays
sick days
personal days
vacation
employee picknics
401k
IRA contribution
profit sharing
kiss your employees a$$ day

The fact is we are spoiled.

Working hard for something is what this nation was built on. Now everthing is built overseas and across our boarders.

This thread sums up why corporations don't use our nations workers.

I would take a mexican that just crossed the boarder in a heart beat. So would many corporations. The benefit to the mexican is still the JOB!


You sound like employer of the year. :eek:

Spidy
04-28-2005, 07:11 PM
Originally posted by R12rules

Originally posted by thehumid1
Pay techs strictly on commission 30% of labor billed 10-15% on parts/equipment sold. Callbacks they do for free as there is no billable hours makes em a bit more careful.

Makes sense.

Would you include service call charge?

Would you go gross sale of parts/equip ? Or after parts are paid for?

If a guy had back to back calls, and the windshile dtime didnt kill him, or her, they could make fifty an hour on simple service work.


Yup, but what happens when theres no work?What about warrenty work? What about covering a callback for the tech who cant make it? What about that loose wire that only takes the price of a service call to fix?What about the cheap C+C's or the flate rated Salt tests?This also promotes parts changers and selling for the sake of selling. When you get paid this way you want to get in and out and on to the next one.Trust me this is the worse way to pay a tech. The owners will start to see the Techs that sell alot as the best ones and they never are....

hvacker
04-28-2005, 07:24 PM
I don't think there is a magic bullet that will motavate people unless they are that rare breed thats self motavated I know of people that are sent to semenars for this end and it lasts a couple of weeks and they go back to there old selves. An old Chinese saying I found to be true over and over is " Outside influences cause little permanent change " I would try to hire self motavated people and forget the rest but you know that can't happen. I think it's like building any team some are A's most are C's and you know the rest. Oh ya the next time some of you go to a doctor remember 49% are below average. I do know most shops never tell new techs what they expect or how they want to be represnted by the tech. Most say here are your calls, there is your van, see ya bye. For most employes if they know what you want and expect they will probably try to give it to you. Communicate.

Spidy
04-28-2005, 07:35 PM
To attract Good techs first off you need 100% paid benis Medical,Dental Vision without deductiables, 40 hours/week.You need paid on going training sick days and paid Vacations..A decent truck to drive. Company support when a problem arises, including time to figure it out.A boss that understands the field, so that when that time consuming troublesome job arises your not being called every 5 mins asking if your done yet, and when you are done not to be loaded with 5 more jobs cause that one took so long.Pay that you cant match or beat at the local union factory where you dont have to think or know anything.Weekends off and a tool replacement program( i dont mind buying my own tools but if they break making you money atleast fix em).I think its that simple no incentives or commisions are needed.You cover that and you cover what 90% of techs are looking for.HVAC techs are different than most we are on our own 100% of the time, we have to understand and have knowledge in every trade in order to be proficcient at ours, we are independant and headstrong and we like to solve problems, we are always looking for solutions.If we dont like our truck, benis or vacation we solve it, we find another job.Basicly elimanate all other problems and all we have to do fix is equipment This makes us happy.