ARE YOUR PAY SCALES COMPETITIVE?
As a subtle hint or just a blatant smack in the head, this topic should be placed on every
company's owner or managers desk. You can't be successful with mediocre talent.
Naturally that includes hourly as well as subcontracted employees.
There are no guidelines for establishing pay scales. Comparing California to Iowa would be fool hardy, because wages are so different in each place.
The only sensible way to determine if your pay scales are competitive is to conduct a phone survey in your labor market. Take a map and with your dealership in the circle, draw a circle 30 miles in radius. Studies show that 30 miles is just about as far as a mechanic will travel one way to work.
Call all companies within Your circle which hire mechanics of like experience to your mechanics. Ask each service manager what his starting pay and benefits are for a mechanic.
From such a survey, you'll know what you have to offer to attract new employees.
Compensation experts recommend paying the highest job entry wages and offering the best benefits to insure you get the most applicants to interview. Notice, NOT JUST MATCH, but beat your competitors with starting wage and benefits.
In time, you will build the reputation for being the best paying employer of mechanics and you will benefit by getting many applicants coming to you first. You can select and hire the most qualified applicants.
Your competitors may not even see the best applicants, because you have already hired them. And because new hires are motivated to go with employers who have the best starting wage, you will hire more of the people you want.
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