Service Work Pay Opinions wanted!

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chris1971

Senior Member
Location
Usa
We are a very small company and I have 1 Service Tech whom is very good at what he does, loves to be on his own, great with customers, etc. The challenge I am having is being able to produce what I believe we should be able to with our service work. For example he is currently paid hourly and what seems to be happening is he will start his hours when he leaves his house at 6:45, he will come by the shop and grab some small materials (screws, fittings, etc.), talk for a little while to me and the other guys about to head out to other projects...but his first appointment wont be until 8:30 so theres already almost two hours of unproductive labor. Also, there may be 1-2 Hour gap between appointments. An example would be a few days ago he turned in 7 hrs (from when he left his house to the time he pulled in his drive way) and there was only 3.5 Billable Hours. I am looking for possibly a commission based rate...something that would be an incentive to stock the vehicle, plan for projects etc. on his time so that he can produce as much as possoble throughout the day, in turn actually earning more for himself and the company.
This is the break down of the example.
Start 7AM
First appt start time 9AM End time: 11:15 = 2.25 Hrs
Dr's Appt from 1-2PM
Service call from 2:30-3 (1 Hour billable)
End the Day at 3PM
Total Pay Roll = 8 Hours - 1hr Dr Appt = 7hrs
Total Billable = 3.25

How is something like this typically handled as far as pay Roll Hours vs. Billable?? I understand every place can be different and all that...what have some of you experienced or currently experiencing that is or is not working for the employee as well as the company?


You need to charge more in order to make up for the nonbillable hours.
 

jahilliard

Senior Member
Eastpoint I agree with everything you said. Great points all around. We are new to service but have GREAT reviews and like you said we now have salesman out there! Word of mouth is priceless and the conversion rate is high!
 
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