Posted by u/shop_owner_dilemma
Flat rate or hourly for techs, which builds a better shop?
Answered by Ask a Shop Owner ·
Tired of flat-rate drama. Considering going all hourly. Bad idea?
u/askashopowner Owner-operator advisor
Top answer
Both work; neither works if the pay plan is not aligned to the shop's real numbers. Flat-rate rewards efficient techs and lets your top guys make $110k+ without you paying overtime. Hourly gets you predictable payroll and less complaining, but you often pay for slow work.
The middle path most winning shops run: hourly base ($22 to $30) plus production bonus (spiff per hour billed over 40, or percent of gross labor). Tech has security and upside. You keep control.
Whatever plan you pick, publish the numbers weekly. Techs who see their hours billed vs paid do not need managers to explain the plan. Transparency is the pay-plan glue.
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