Flat Rate Pay: Controversies and Alternatives [FTR 105]

Thanks to our Partners, Shop Boss, and 360 Payments

Recorded at the 2024 Automotive Aftermarket Retailers of Ontario (AARO) Business Management and Lindertech Training Tradeshow, Carlo Sabucco discusses the challenges of flat rate pay systems in the automotive repair industry, particularly for new technicians. He highlights the steep learning curve and unrealistic expectations associated with this pay structure. Carlos advocates for alternative compensation models, such as salary plus performance incentives, to better support technicians’ growth and align with their personal and professional aspirations.

Carlo Sabucco, Sil’s Complete Auto Care Centre, Oakville, ON. Carlo’s previous episodes HERE.

Show Notes

  • Watch Full Video Episode
  • Automotive Aftermarket Retailers of Ontario (AARO): https://www.aaro.ca/
  • Discussion on Flat Rate Pay Systems (00:00:27) Discussing flat rate pay systems and their challenges in the automotive industry.
  • Challenges for New Technicians (00:01:11) Difficulties faced by younger technicians under flat rate pay, emphasizing the learning curve.
  • Alternative Pay Programs (00:03:09) Discussion on the need for alternative pay structures as some dealers move away from flat rate.
  • Training and Continuous Changes (00:06:06) The impact of constant training and changes on technicians’ performance under flat rate systems.
  • Paying for Dreams, Not Just Jobs (00:06:22) Carlo advocates for a pay structure that supports employees’ aspirations rather than just their job roles.
  • Ethics and Speed in Flat Rate Systems (00:08:22) Concerns about ethical practices and the culture created by a focus on speed over quality in flat rate pay.
  • The Need for Professionalism (00:09:23) The importance of professionalism and fair compensation in the automotive industry.
  • Individual Pay Programs (00:10:23) Discussion on the necessity of tailoring pay programs to individual employee needs and dreams.
  • Building Employees’ Dreams (00:13:34) The importance of understanding and supporting employees’ dreams to foster loyalty and performance.

Thanks to our Partners, Shop Boss and 360 Payments

Shop Boss – Shop Management Software built by shop owners for shop owners. It works the way you need it to, right out of the box. Find on the web at https://shopboss.net

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The Aftermarket Radio Network

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion

Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life.

The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level.

The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix – Auto Shop Coaching.

Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.

Speak Up! Effective Communication with Craig O’Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.

 

 

 

 

 

 

 

About the author, Carm Capriotto, AAP

Carm is the founder and host of the Remarkable Results Radio Podcast and the pioneer of automotive aftermarket podcasts. Carm calls on his years of experience in the aftermarket to bring engaging stories from his guests.

Listen to raw, unfiltered, honest, and sincere stories that include insights, trends, best practices, and expertise. Each interview brings an opportunity to learn one new thing through the stories of personal achievement. Many podcast guests tell their story of transformation from working in their business to working on it.

As host of over 1,000 episodes, Carm uses his enthusiasm and passion for the aftermarket especially the service sector to take his listeners on a journey showcasing successful service professionals’ paths to Remarkable Results. He also enjoys interviews with aftermarket industry thought leaders who bring their industry perspectives to his listener.

Follow the podcast on your favorite podcast listening app and always listen to learn just one thing!