In the exit interview, the lead technician explains why. A dealer offered $28 an hour. On paper, that is less than what you pay. In practice, their flat-rate structure means the tech expects to earn more.
This catches many shop owners off guard. You did the math. You pay better. Yet your best people still leave.
Why this matters
Technician turnover in collision repair and auto body is expensive. Between recruiting, onboarding, lost production, and customer disruption, a single departure can cost tens of thousands of dollars.
At the same time, the industry is facing a long-term technician shortage. Replacements are harder to find every year.
When a higher hourly wage does not prevent turnover, it is a signal that pay is being evaluated the wrong way.
The core issue is this. Technicians do not compare wages. They compare outcomes.
Pay Alone Is Not the Lever You Control
Hourly pay shows what a technician earns for time. What you control is whether better work leads to higher earnings. When pay stays flat regardless of output, techs feel capped, even at higher rates.
You cannot control what other body shops pay. You can control whether performance raises earning potential. Bonuses tied to quality, efficiency, or fewer supplements raise the ceiling without locking you into higher base wages.
You also control whether progress is recognized. When a technician stays in the same role for years, raises feel empty. Clear advancement rules make staying feel like a smart choice.
Benefits work the same way. You may not afford top-tier coverage, but partial health support, paid training, or predictable schedules reduce personal risk.
These changes are not about spending less. This is where many owners misjudge the problem. They assume retention requires matching or beating market wages year after year.
In reality, the risk falls on the body shop if they cannot keep their technicians. Technician turnover increases training costs, disrupts workflow, reduces throughput, and creates production gaps that no hourly adjustment can quickly fix.
The Takeaway
You cannot win a bidding war forever, and you cannot stop wages from rising. What you can do is make every dollar you spend reduce uncertainty instead of reacting to the next offer your tech receives.
