Finding and keeping technicians continues to be one of the automotive industry’s toughest hiring challenges.
But for New England-based McGovern Automotive Group, $1.6 million in annual bonuses and an in-house training center have fundamentally shifted how the organization hires and retains service department personnel.
What they’re saying: "About three years ago, we took a 30-year technician who wanted to get out of the business and we made him our technician recruiter for the group," Danny Negalha, McGovern's director of fixed operations, told Daily Dealer Live hosts Sam D’Arc and Uli de’ Martino.
Driving the news: That recruiting role became the foundation for a hiring system launched three and a half years ago.
The infrastructure grew from that single veteran technician into a full team that partners with trade schools and manages apprenticeship programs.
Over the past few years, that recruiting operation hired over 100 technicians across McGovern's 34 stores, while dropping its turnover rate to 21%—well below industry norms.
Yes but, hiring alone doesn't solve retention. McGovern also created McGovern University a couple years ago to provide structured onboarding that most dealerships skip.
The program covers basic electrical systems, DMS navigation, alignment fundamentals, and safety protocols (foundational skills that often get overlooked).
A team of trainers works in the shops with new hires.
“We have a team of nine helping them, making sure that they're being mentored properly," Negalha said.
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The bonus structure: McGovern's employee incentive program ties payouts to three performance metrics: tenure with the company, multimedia inspection performance, and certifications.
The multimedia component tracks how technicians use video, photos, and text in customer service communications. McGovern invested in digital inspection platforms over the past several years, and has seen "really good trends in revenue growth,” according to Negalha
Last year, the average technician received $6,000 - $8,000 in bonuses right before Thanksgiving, while top performers cleared $18,000 - $20,000.
Between the lines: Negalha acknowledges not every technician hits the maximum, which keeps the economics sustainable. When comparing total payouts against gross profit generated by the technician workforce, he says the cost remains "very minimal."
"We have an owner that believes in it," Negalha said. "It's been great for retention, but it's been a good advertising tool."
What's next: McGovern continues expanding the program as the group acquires additional stores, including two pending acquisitions that will bring the portfolio to 36 rooftops. The technician retention framework scales with growth, creating operational consistency across new locations.
"Our goal is the big picture," Negalha added. "If we can retain them longer, it makes a lot of sense to us."
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