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Tech pay and efficiency
A tech is paid for every hour on the clock but only bills some of them. Put in one tech’s week to see efficiency, labor cost as a share of what they bring in, and what a billable hour really costs you.
How we calculate it
Billable efficiency = billable hours ÷ hours paidPay per week = hourly pay × hours paid + commission × revenueLoaded labor cost = pay per week × (1 + burden)Labor cost as % of revenue = loaded labor cost ÷ revenueRevenue per paid hour = revenue ÷ hours paidEffective cost per billable hour = loaded labor cost ÷ billable hours
Doesn’t include overtime premiums: if the tech works overtime, enter an average hourly rate that includes it. Labor cost here is the tech only, not the truck, tools or office.
Fix this with
- Write the weekly KPI recap for the teamService Manager · 15 min per week→
- Prepare for a tech performance conversationService Manager · 20 min per conversation→
- Write a commission or spiff calculation memoBookkeeper / Accounting · 20 min per pay period→
- Write ride-along coaching notesService Manager · 15 min per ride-along→
- Shop Kit: New tech onboarding5 workflows in order→
- Shop Kit: Owner weekly numbers review5 workflows in order→
One new workflow a week
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