Rockstar Mechanics Blog

Is Investing in Recruiting the Best ROI for Your Mechanic Shop?

Written by Rockstar Recruiting | Sep 11, 2024 2:04:57 PM

Is Investing in Recruiting the Best ROI for Your Mechanic Shop?

For many mechanic shops, the biggest obstacle to growth isn’t a lack of customers—it’s a lack of skilled staff. If your shop is consistently booking work weeks in advance because you don’t have enough technicians, investing in recruitment could provide a significant return. Adding just one skilled mechanic to your team can have an immediate impact on your bottom line.

However, many shops struggle to find the right people. They often rely on job boards like Indeed or ZipRecruiter, which leads to one of two common outcomes: either no one applies, or you’re bombarded with unqualified candidates—often those with general labor backgrounds applying for a skilled mechanic position. While some shops rely on referrals or word-of-mouth hiring, this method isn't enough to consistently grow your business. The most successful, growing shops take a proactive approach to recruitment.

Why Professional Recruiting Can Make the Difference

Utilizing a specialized recruiting service like Rockstar Recruiting, particularly our mechanic-focused division known as Rockstar Mechanics, extends your hiring search far beyond job boards. Our team specializes in locating passive candidates—technicians who are currently working and not actively searching but are open to new opportunities that could be a better fit.

Here’s how it works: We pitch available jobs to these passive candidates, screen them to ensure they’re a strong match for your shop, and only present you with top-tier candidates. Best of all, there are no upfront fees or commitments. Rockstar Recruiting works on a contingency basis, meaning your shop only pays if you successfully hire one of the candidates we refer.

The ROI of Recruiting: Is It Worth the Cost?

So, why doesn’t every shop use a recruiter if it can lead to such great results? One reason is the fear of cost. Yes, hiring through a recruiter is not the cheapest option. Fees typically range between 15% and 20% of the candidate's projected first-year income. For example, if you hire a mechanic at $30 per hour, the recruiter’s fee would be approximately $750 per month for the first year.

That might sound like a lot at first glance, but consider the return on investment (ROI). If your shop charges a labor rate of $125 per hour, even if your new technician operates at just 75% efficiency, and you factor in a 20% burden rate (the cost of employing someone), that mechanic is still likely to generate around $10,000 in monthly profit. In that context, the $750 recruiting fee becomes much easier to justify.

Also, keep in mind that this is only taking account of Service Revenue and does not even address the added Parts revenue that your shop would generate from having an additional technician billing hours. 

Run the Numbers for Yourself

If you're still on the fence, run the numbers. Play with a calculator and plug in your shop's specific figures—your hourly labor rate, efficiency, and burden rate—and see for yourself how hiring the right mechanic can drastically improve your shop’s performance.

 

Ready to Invest in Growth?

If you’re ready to grow your team and want to discuss how Rockstar Recruiting can help, we’d love to chat. Whether you're ready to engage in a search or just have questions, feel free to reach out. Email us at info@rockstarrecruitinggroup.com, call us at 1-833-762-5787, or click here to book a call.

Regardless of what type of Mechanic you need to hire, Automotive, Diesel, Heavy Equipment, Marine etc. we do it all! Let’s discuss a tailored recruitment strategy to help your shop reach its full potential.