Automotive Fleet

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Labor Rates

Fleet Readers Sound Off on Flat-Rate Compensation

One key reason for a current shortage of service technicians is the result of the flat-rate compensation plan, a contentious payment system that assigns standard times to complete a repair job. Many technicians assert that the flat-rate compensation plan under-compensates them in relation to other industries requiring similar skillsets.

COVID-19 Offers Opportunity to Make a Dent in the Technician Shortage

Now is when the fleet industry should be proactively identifying these future technicians. The fleet industry has a window to tap into this idled labor pool, who will look attractive to other industries experiencing labor shortages leading to increased competition to recruit this talent.

Upward Pricing Pressuring Fixed and Operating Costs

Fleets are being impacted by a variety of inflationary pressures ranging from higher acquisition prices due to the proliferation of onboard safety equipment, to increased material costs pushing up pricing on parts, upfits, and replacement tires.

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