HR, technology are the biggest issues in auto repair businesses

Dec. 3, 2019
I submit there is not a real human resource shortage; there is a human resource competency shortage. On top of that, there is a technology shortage in the shop as well.

Everyone is talking about the lack of personnel to select from within the industry and wondering how next year is going to fall out. Shops are also wondering what type of equipment they should be looking at and then once they start investigating the issue, they think to themselves, “I can’t afford that.”

I submit there is not a real human resource shortage; there is a human resource competency shortage. On top of that, there is a technology shortage in the shop as well. We estimate that the average shop is approximately $150,000 behind in necessary equipment and training including the addition of up-to-date computer technology that is required in a shop today to professionally and efficiently serve the consumer and fleet coming through the door.

Marry the HR issue and the Technology issue, and you have an inefficient, unprofitable and stressed-out shop.

Now what?

The facts do not lie. An understaffed shop cannot be productive enough to drive the necessary bottom line so the shop has the dollars to move forward with required future investments. An issue that must be addressed is that shop management perceives that staff are a cost to the business; therefore, they have put the shop in a position where, in reality, they are two to three people under staffed. Fact: incompetent staff is a cost to the business; competent staff is prepared to be accountable and will make a company money.

To change this, management must first take an inventory of the current staff competencies. Is the current staff trained to the level they need to be? If not, does each individual have a true desire to be the best that they can be? If they don’t have that desire, you have the wrong person in the shop. Second, does your shop have a physical and business environment where competent people would love to work? If not, clean it up, brighten it up and organize the layout of the shop so things are easy to get to and find. Third, look at what training you are prepared to and must invest in with current staff and new staff. Make a detailed list and then introduce to the individual a proper training bond. This protects the shop from making the investment in training and then the individual turns around and leaves. Career-orientated people are starting to understand this necessary step. Job-seeking people will walk away. Fourth, be prepared to pay for competency. The shop must adjust the various labor rates to reflect the competency within the shop. Do the math, the right door rate is not a huge increase to the average consumer invoice, yet it goes a long way to moving the bottom line to the right level it must be. Fifth, be prepared to look to other cities and even other countries to attract and recruit the right talent. Too many shop owners stick to their own community or city thinking and expecting the resources to be available. In many regions of the country, that is not so. Sixth, management must always be on the lookout for good staff.  It is a seven-day-a-week, 365-day-a-year mindset. Do not start looking for people only when the occasion arises. The stress factor will keep you up at night.

The second issue is technology. Technology is going to also be an on-going item moving forward. Gone are the days where basic equipment lasts 7-10 years. Constant re-investment will be required to service the technology in today’s and tomorrow’s vehicles. Technology investments must be properly planned. Technology not only covers equipment in the bays, it also must be examined as to what is required for the individual technician to perform his/her duties efficiently. Technology must be examined for the front counter to ensure the service consultant is effective, accurate and efficient in completing their tasks but also include technology tools to educate the consumer on their vehicle. Technology must also be examined for the office where administration must have effective tools to not only complete the bookkeeping and accounting accurately but also to be able to follow up with clients, ensuring their experience was a good one for them at your shop. The ability to keep good notes on clients, book future appointments and develop a solid relationship with the client is a necessity today, and in many cases, these functions are carried out in the back office so the right technology is required for this as well.

This article is scratching the surface on these two issues, but I am trying to point out that the aftermarket must be prepared to learn and instill the disciplines necessary to handle both issues. Both require ongoing and detailed planning.

Today’s business is a challenge to say the least, however, with the correct attitude, a clear mindset focused on the right outcome, HR and technology issues can be properly addressed. Slow down and plan properly and the business will continue to improve. It is a process.

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