Many will argue the most critical long-term issue our industry faces is the impending technician shortage. While the issue is multifaceted – we must find ways to encourage young students to enroll and complete a vocational post-education in the first place, and then direct them on a clear career path and job placement – there are things you can do as a shop owner to address the issue.
It starts with looking at your current workforce, and the benefits you provide to your employees. One example? Buying tools for your technicians.
Once they’re in the workforce, recent college graduates are expected to pay back thousands of dollars in student debt, in addition to paying their own monthly bills, and possibly supporting a family. On top of all of that? They need to buy their own tools to support their livelihood.
It’s understood that shops will already provide some of the larger and more expensive equipment like lifts, RRR machines, scan tools; but there are other products techs need on a regular basis.
Filling a toolbox is expensive and it’s not getting any cheaper, especially with the continued technological advancements in vehicles. Techs will need more and more diagnostic tools, scan tools and products that allow them to work on and diagnose software issues. Not to mention, traditional professional hardline sets and power tools can costs hundreds of dollars each.
Can we really expect an entry-level technician to have all of the tools and equipment necessary, right out of VoTech, to complete vehicle services? And if they’re at flat rate, time is literally money that they can’t make because they don't have the right tools (and can’t afford to purchase them). It can be a vicious cycle.
What if you, as a shop owner, could help?
According to the PTEN 2017 Aftermarket Profile, featured in our March issue, only 21 percent of shops reimburse their technicians for some or all of their tool and equipment purchases (plus, this is down from 34 percent in 2016 Aftermarket Profile). That means more than three quarters of techs in the field are responsible for filling their own toolboxes with the tools needed to work in the bay on a daily basis.
At NACE Automechanika this past July, I sat down with a group of technicians and shop owners to get more insights on topics like this, including if their shop provides tools, or a tool stipend, to employees.
Some participants confirmed their shops provided some form of payment or stipend for tools, including paying a mobile tool dealer directly for employees to have truck accounts. Another said in California, state law dictates the salary of a technician on whether or not the shop provides tools.
According to California’s Industrial Welfare Commission (IWC) Order No. 4-2001 (9) (b), “When tools or equipment are required by the employer or are necessary to the performance of a job, such tools and equipment shall be provided and maintained by the employer, except that an employee whose wages are at least two times the minimum wage provided herein may be required to provide and maintain hand tools and equipment customarily required by the trade or craft.”
Some shops did pay for some of their techs’ tools. Or, they had heard of larger repair facilities with multiple bays - such as CarMax - providing tools to their technicians.
If nothing else, most agreed the benefits can include increased employee retention, because the employee is now equipped with all of the tools to perform the job; plus, the employee may feel more beholden to the employer for providing the tools.
Not just any entry-level technician may be eligible; and you could also consider providing a stipend for exceptional veteran techs. Have a probationary period before agreeing to reimburse for tool purchases, or provide a tiered tool stipend amount based on performance. Have a set list of qualifications before you’d issue a percentage stipend.
What kind of incentives do you give techs now? Do you already reimburse your employees for tool purchases, or provide a stipend? Or, do you have a collective toolbox or tool room where techs can check out tools? I’d like to hear your feedback.
