T hen there’s the pay plan dilemma. Many F&I consulting companies-including the National Automobile Dealers Association-recommend departmental compensation in the 15-18% range and some pay even more. This is reasonable in the mind of most managers with some top performers earning even greater percentages based on pay plan composition. Most dealers have adopted matrix pay programs that incentivize finance managers to produce specific product sales such as Tire & Wheel or Key Loss Protection so it’s a win-win for everyone. Except when it’s not. That occasion is revealed when a manager has several huge months and hits the outer limits of the pay plan resulting in a larger check than executive management believes should be written. Then comes the bad news. Instead of glad-handing the F&I staff, the ominous pay plan adjustment is handed down wrapped in fancy words. Now, to be fair, pay plans should have limits but not in the form of greenbacks. Pay plan limitations should be about percentages with product-based goals and rewards built-in. If the FIM earns 19% or 20% because he had a super month, pay him! Think about the percentage he made you and the dealership because of his outstanding success that particular month. But, I can hear some of you grousing right now. So, let me ask you a question, who wrote the pay plan? Was it someone in the accounting office, the General Manager, the F&I product provider’s rep , or an OEM representative? I ask this because it’s important to approach commissioned pay from the top down. Every possible scenario of that pay plan should be completely understood so there are no surprises. Now, we know that pay isn’t everything as some will leave for a lesser paying job due to other factors. These can include excessive hours, six-day work weeks, co-worker dissatisfaction, and lack of pride in a job well done. How is this curable? Let’s unpack some of this and see if there is a solution from the dealer’s side of the table. We all know how important time off is with family. The worker takes a long weekend and comes back refreshed and thankful for that time off then knocks the cover off the ball. Tip: Establish a five-day workweek by cross-training your desk managers and sales managers to fill in when your finance manager is off. 7
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