N.C. repair shop moves to 'team bonus' system - 2008 Top Shops finalist discusses motivating employees and the effect of dealership closings. - Motor Age - Automotive training, certification & parts

N.C. repair shop moves to 'team bonus' system2008 Top Shops finalist discusses motivating employees and the effect of dealership closings.

Source: Motor Age

Cary Car Care once prided itself on being the “Home of the No Commission Technician,” but that strategy has been altered somewhat.

“(The commission-free structure) has been a huge deal over a long period of time,” says owner and manager Paul Lambdin, regarding the Cary, N.C.-based repair shop. “Just recently, we changed that program to kind of a team bonus. Rather than trying to focus on the technicians and how many hours they’ve flagged, we’ve turned it into something that involves those technicians and the general service as well.”

The shop has devised its own matrix of numbers, and techs must achieve a certain efficiency percentage in order to get the team bonus, which is also based on gross profit dollars, Lambdin says, adding when he wasn’t using a commission-based structure, employee motivation could prove difficult at times.

“There are some people who need the carrot, and it was definitely a change when they would come to us,” he admits. “As time went by, they enjoyed the overall atmosphere of everyone wanting to produce and make our customers happy, get what they want done and knowing we were providing monetary safety for all of us and for the company’s future. We did change the program for a number of reasons.”

Although North Carolina has fared pretty well considering the wider economic climate, Lambdin, whose shop was a finalist in last year's Motor Age Tops Shops competition, admits that several shops have closed, including some larger chains. But the 15-bay, 10,000-square-foot shop has had a record six-month period of late.

“There are a couple of good local shops that are close by that are in the same boat we are,” he adds. “They’re fortunate to be busy as well.”

As far as dealership closings, Lambdin says he hasn’t noticed any extra runoff business.

“We’re certainly in a unique area and are more insulated than the rest of the country from this recession and still remain pretty vibrant in lots of different areas,” he says. “I don’t think we have noticed it as much as anyone else. Initially, there was a tightening of the dollars which meant no one was getting the money, and then there were some decisions made to keep the cars (drivers) have, so the maintenance became important again.”

As with other successful shop owners, employee training is vital, says Lambdin, who adds that due to a recent increase in business, he’s been able to move past “survival mode.”

Cary Car Care also is heavily involved with its community, as evidenced by the shop’s participation in a charity program called “Wheels4Hope,” which provides donated cars. Over the past eight years, the business has helped the program with more than 200 vehicles, from inspections through to major repairs.

To hear audio from Lambdin, click here.

To enter in this year’s Top Shops competition, click here.

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