If you have not used incentives, you
may be surprised to learn that incentives do not work for all employees. Some employees refuse to be motivated, stimulated, inspired, or held accountable. Usually their performance is rated as MDR (minimum daily requirement), which is consistent with taking vitamins.
INCENTIVE NUMBER ONE: Paying incentives for increased billing efficiency (for experienced and qualified technicians) Terms and conditions We recommend establishing two
performance levels of efficiency for full- time, qualified technicians working a standard 40-hour workweek. 1) Minimum acceptable level of efficiency is 50 percent. That's equal to billing 4 hours to customers of an 8-hour workday. Technicians performing at less than 50 percent may need additional training or other means of motivation. 2) Professional level of efficiency begins at 55 percent with an acceptable
annual level of at least 65 percent. Top- performing technicians will be producing at an efficiency level between 75 and 85 percent.
Other terms and conditions • Service department has a constant
flow of work orders. • There are no other duties required of technicians.
• Incentive formula is payroll hours vs.
hours billed to customers. • Incentives may be tabulated according
to established pay periods. As we proceed, it is important to
remember, the following example of hourly wage (see box below) is for instructional purposes, and may not be indicative of your market or dealership needs.
For this exercise, we will use a competitive, fair market, wage per hour of - $15 Our technician working a standard 40-hour week will earn - - - - - - - - - $600 Incentive pay scale below increases technician's hourly pay rate, as billing efficiencies increase during the pay period. When technician achieves: • 55-percent efficiency, technician's hourly wages increase to - - - - - - - - - $15.50 • 60-percent efficiency, technician's hourly wages increase to - - - - - - - - - $16 • 65-percent efficiency, technician's hourly wages increase to - - - - - - - - - $16.50 • 70-percent efficiency, technician's hourly wages increase to - - - - - - - - - $17 • 75-percent efficiency, technician's hourly wages increase to - - - - - - - - - $17.50 • 80-percent efficiency, technician's hourly wages increase to - - - - - - - - - $18 • 85-percent efficiency, technician's hourly wages increase to - - - - - - - - - $18.50
OUTDOOR POWER EQUIPMENT NOVEMBER 2012 17
