Wash. It helps with budget, labor and workforce consistency. If a technician can count on getting a raise every year, he or she can plan for the future, he says. It also helps him out because he is able to budget for pay increases when developing a long-term plan. Technicians who know they can count on a raise may also be more apt to stick around. Meyer says this benefits him because he doesn't have a high rate of turnover.
Turnover is expensive.
His low turnover rate enables Meyer to schedule the right amount of work for his shop because he knows what his technicians are capable of. This then leads to customer retention, and ultimately a better and more profitable shop. Meyer gives the example of a customer who gets into an accident in 1990, brings the vehicle to his shop and is pleased with the repair. If that vehicle is involved in an accident 10 years later, he or she is able to bring the car back to his shop and receive the same quality repair. As far as negotiating with employees, Meyer says it helps to know that it is done on a three-year basis, and it allows him to be prepared to discuss salary and benefits, among other considerations.