Plenty of honorable service firms pay technicians on a commission basis, but the downsides outweigh the pluses.
The upsides of commission-based pay are compelling when taken at face value. It's virtually beyond dispute that
incentive compensation motivates people to work efficiently and maximize revenues. Many commissioned service
plumbers and technicians earn more than they could via hourly wages, and their companies make more money as
well. Commissions mean predictable labor costs for financial management purposes. An incentive plan also engages
the pay equity issue. Because people get paid in accordance with what they produce, many argue that this is the
fairest method of compensating service techs.
All of these arguments I acknowledge and respect. I want to state loudly and clearly that there are many admirable
PHC service companies out there that pay their technicians via commission. Please don't overgeneralize what I'm
about to say.