Everything You Need to Know About Pay Structures for Home Service Techs

Introduction

Paying your home service techs the right way isn’t always simple. Set it up wrong, and you’ll struggle with motivation, retention, and profits. Get it right, and you’ll have a team that works harder, stays longer, and drives real growth. But with so many pay structures out there, how do you know which one works best? In this post, I’m breaking down the three main ways to pay your home service techs.

1. Hourly or salary 
2. Hourly plus incentive
3. Full commission or task-based pay

By understanding the pros and cons of each, you’ll be able to make an informed choice that keeps your techs happy and your business profitable.

1. Full Hourly or Salary Pay

The most traditional form of pay is the full hourly or salary structure. This option is straightforward and widely understood, making recruitment an easy job for you and your team. Employees appreciate the stability, knowing their mortgage and bills are covered with a consistent paycheck. However, the downside is the lack of incentive for technicians to work beyond their basic responsibilities. If your business values steady performance without a priority on aggressive growth, this approach could be ideal for you.

✅ Pros:
✔ Predictable, reliable income
✔ Easier to recruit and retain technicians
✔ No complicated tracking or commission calculations

❌ Cons:
✘ No incentive to increase efficiency or sales
✘ Can lead to lower productivity if not managed well

This setup works well if you’re performance focused while wanting to keep risk low for your team. 

This model works best for companies focused on stability over aggressive growth.

2. Combination of Hourly Plus Incentives

To motivate technicians while retaining the security of an hourly base, consider adding performance incentives. For instance, you could offer a standard hourly wage combined with a commission, such as 4 percent of what they sell or the work they perform. This hybrid approach encourages employees to excel while providing a safety net. However, it does introduce challenges in terms of administrative complexity and may require more management effort to ensure fair and transparent tracking of performance metrics.

✅ Pros:
✔ Motivates employees without removing stability
✔ Encourages efficiency and upselling
✔ Balances financial security with performance rewards

❌ Cons:
✘ Requires more administrative work to track commissions
✘ Needs clear performance benchmarks to prevent confusion

This setup works well if you’re performance focused while wanting to keep risk low for your team. 

3. Full Commission or Task-Based Pay

This is the ultimate performance-driven model—techs are paid based on what they produce. Whether it’s a percentage of revenue generated or a fixed rate per task, their earnings are directly tied to their output. This can be highly rewarding for both parties if the right team is in place, boosting technicians' take-home pay significantly. While this can motivate high achievers, it might complicate recruitment as there is no guaranteed base salary. Additionally, maintaining quality might pose a challenge, as the focus on speed and efficiency could outweigh careful workmanship.

✅ Pros:
✔ Drives high performance and revenue growth
✔ Attracts competitive, sales-driven technicians
✔ No fixed labor costs

❌ Cons:
✘ Harder to recruit and retain employees who want income stability
✘ Can lead to rushed jobs and potential quality issues

This model works best for businesses confident in their ability to recruit hungry, high-performing techs who thrive on commission.

While these structures apply directly to technicians, the concept can be extended across your organization. Incentivizing call takers, dispatchers, and other roles can create a cohesive performance-driven culture within your business. The key is finding a balance that motivates employees while ensuring the quality of service remains high. By carefully considering and potentially blending these pay structures, you can create an environment that fosters both stability and growth.

‍Conclusion

In conclusion, each pay structure comes with its own set of trade-offs. Whether your priority lies in simple, stable operations or you're aiming for rapid growth through performance incentives, understanding the implications of each structure can better equip you in making informed decisions for your business.

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