Over the last two weeks, I’ve had the pleasure of attending some tool and equipment shows – and seeing a lot of cool tools, such as a pneumatic oxygen sensor remover, a magnetic socket holder and all kinds of flashlights and work lights. It seems that all the equipment is well-built, more powerful and user friendly, and the tools are stronger, but lighter. There are many more battery-powered tools out there too, as technological advances have improved battery life while reducing the size of the battery.
These tool shows were very well attended because they allow the manufacturers to show off their new stuff for the warehouse distributors and wagon jobbers. And soon you’ll be seeing presentations on how the latest gadgets can save you time, bloody knuckles and lots of frustration. The one thing you won’t save is money. It’s not that because prices are going up; it’s because you won’t be able to resist all the new innovations. I’m sure you’ve spent a lot of money through the years on tools you want versus tools you really need.
One way to ease the pain for technicians who have to make a substantial investment in tools is to adopt a tool reimbursement program. These programs pay the technician for tool and equipment expenses separately from wages. When a few dollars of a tech’s hourly pay is allocated for tools, they don’t have to pay tax on this portion of their income. At the same time, the employer/shop owner doesn’t have to pay FICA/Medicare on this portion of the technician’s pay either. So both the parties win with such a program – more take-home pay for the tech and lower payroll expenses for the shop owner. These plans need to be established and paid via a third-party administrator. Since you are dealing with the Internal Revenue Code, check with your accountant or financial planner for more information.
A plan that can save employees money is sure to increase technician loyalty at your shop. If you’re using a tool reimbursement plan at your shop, I’d like to hear how it’s working and what your technicians think of it. In the mean time, the newest equipment and tools are on their way.
