Efficiency is different from productivity and improving it could be the missing link to transforming your HVAC business performance. While productivity measures how much work gets done, efficiency reveals how well you're using your resources to achieve those results.
Most HVAC businesses focus on booking more jobs and working longer hours, but the real opportunity lies in maximizing the value of every hour your techs spend in the field.
What is tech efficiency?
Technician efficiency in HVAC measures how effectively your technicians convert their time into revenue for your business. It's calculated by comparing billable hours to total hours worked, showing you exactly how much productive work happens during each shift.
For HVAC businesses, tech efficiency directly impacts profitability. A tech working at high efficiency generates significantly more revenue than one at low efficiency, even if they complete the same number of service calls. The difference comes from minimizing wasted time between jobs, reducing callbacks, and maximizing first-call resolution rates.
Tech efficiency vs. productivity vs. proficiency
Understanding these three metrics helps HVAC shop owners identify exactly where to focus improvement efforts. Each measures a different aspect of technician performance, and all three work together to streamline operations and drive business success.
Tech efficiency
Tech efficiency measures the percentage of time spent on revenue-generating activities. An efficient tech minimizes drive time, reduces parts runs, and completes thorough diagnostics on the first visit. The most successful HVAC businesses consistently track and improve this metric.
Productivity
Technician productivity tracks the volume of work completed, such as service calls per day or installations per week. A productive HVAC tech might complete multiple service calls in a day, but without considering efficiency, those calls might involve multiple return trips or excessive travel time.
Proficiency
Proficiency reflects skill level and technical expertise. A proficient HVAC technician diagnoses complex problems quickly, performs quality repairs that last, and handles a wide range of equipment types. Higher proficiency leads to better efficiency through faster problem-solving and fewer callbacks.
How can you measure efficiency?
Measuring tech efficiency starts with tracking the right data points. HVAC businesses need clear visibility into how technicians spend their time throughout each workday.
Calculate billable vs. non-billable hours
Track every hour from clock-in to clock-out. Understanding exactly what counts as billable versus non-billable time helps identify where efficiency improvements will have the most impact.
To calculate your tech efficiency: Divide total billed hours by total hours worked, then multiply by 100. For example, if a tech bills 6 hours in an 8-hour day, that's 75% efficiency.
Simple Calculation:
- Billable hours ÷ Total hours worked × 100 = Efficiency percentage
- Example: 6 billable hours ÷ 8 total hours × 100 = 75% efficiency
While this calculation gives you the overall efficiency picture, several supporting metrics help you understand what's driving your numbers up or down. Tracking these additional indicators reveals specific areas where you can improve efficiency and helps you make targeted improvements rather than guessing at solutions.
Monitor first-call resolution rates
Track how often technicians complete repairs on the first visit. Higher first-call resolution means better efficiency, as it eliminates return trips and reduces customer disruption. Many successful HVAC businesses set specific targets for their teams and track progress monthly to enhance customer service.
Measure average job completion time
Compare actual job times against your estimates. If individual jobs consistently take longer than expected, you've identified an efficiency gap. Track patterns across different job types and technicians to spot training opportunities.
Track revenue per technician hour
Calculate total revenue generated divided by the total number of hours worked for each technician. This metric combines productive efficiency with pricing effectiveness, showing which techs generate the most value for your business.
Revenue per Hour Calculation:
- Daily revenue per tech ÷ Hours worked = Revenue per hour
- Example: $2,400 daily revenue ÷ 8 hours = $300 per hour
Track this metric regularly to spot trends and identify top performers. Use this data to guide training and mentorship programs.
Common bottlenecks that lower efficiency
Identifying and eliminating bottlenecks can dramatically improve your HVAC operation's technical efficiency. These common issues often cost businesses significant revenue every month.
Poor route planning and scheduling
Sending techs across town multiple times per day wastes hours in traffic. Inefficient routing reduces billable time and increases fuel costs. Reclaim those lost hours with smart scheduling around geographic clusters.
Incomplete or disorganized truck stock
Missing parts force techs to leave job sites for supply runs, and every parts run takes time away from billable work. Making sure trucks have the right tools and proper stock levels can prevent these costly interruptions.
Manual paperwork and documentation
Hand-written invoices, paper service tickets, and manual data entry consume valuable hours. Digital forms and mobile apps are highly efficient, saving significant time daily while reducing errors.
Lack of diagnostic tools or outdated equipment
Old or inadequate tools slow down diagnostics and repairs. Modern diagnostic equipment can dramatically reduce troubleshooting time for complex HVAC systems.
Poor communication between office and field
Miscommunication about job details, customer information, or parts availability creates delays. Real-time communication tools keep everyone aligned and moving efficiently.
Insufficient training on new systems
Techs struggling with unfamiliar equipment take longer to complete jobs. Regular training on new HVAC technologies maintains high efficiency across all job types.
Strategies to improve tech efficiency
Implementing these proven strategies can significantly boost your tech efficiency, sometimes within just a few months, weeks, or even days.
Implement smart scheduling and routing
Use software that automatically groups jobs by location and matches tech skills to job requirements. Smart routing can add extra billable hours to each tech's day by reducing drive time.
Standardize truck stock management
Create standard stock lists for each truck based on your most common repairs. Implement regular stock checks and replenishment systems. Well-stocked trucks dramatically reduce time-wasting parts runs, especially in rural areas where a single run for parts might take one or two hours.
Invest in quality diagnostic equipment
Modern diagnostic tools pay for themselves through time savings. Digital manifolds, combustion analyzers, and thermal cameras speed up troubleshooting and improve diagnostic accuracy.
Establish clear communication protocols
Create standard procedures for job updates, parts requests, and schedule changes. Use team messaging apps to keep everyone connected in real-time. Clear protocols reduce miscommunication and delays.
Develop comprehensive training programs
Schedule regular training on new equipment, efficiency techniques, and customer service for maximum output. Cross-train techs on multiple system types to increase scheduling flexibility, reduce bottlenecks, and keep up with industry standards.
Create performance incentives
Reward techs who maintain high efficiency while delivering quality work. Tie bonuses to efficiency metrics, customer satisfaction scores, and first-call resolution rates.
Optimize parts and inventory processes
Partner with suppliers who offer quick delivery and will-call options. Maintain relationships with multiple suppliers to ensure parts availability when needed.
Adopt digital job management tools
Replace paper with mobile apps for service tickets, invoices, and customer signatures. Digital tools save time daily and reduce errors while improving customer communication and documentation.
Tools that help improve efficiency
Modern tools and technology can transform your HVAC business efficiency. The right combination of software and systems creates a foundation for sustainable improvement.
Field service management software
Comprehensive platforms that handle scheduling, dispatching, and customer management in one system can eliminate duplicate data entry and provide real-time visibility into all operations.
GPS tracking and route optimization
Tools that automatically plan the most efficient routes for your techs, considering traffic patterns, job locations, and urgency levels help reduce windshield time and fuel costs.
Mobile diagnostic apps
Mobile apps that help techs quickly diagnose system issues, access equipment manuals, and calculate loads put essential information at technicians' fingertips, even in the field.
Customer communication platforms
Tools that automate appointment reminders, service follow-ups, and maintenance notifications help reduces no-shows and improve customer satisfaction.
Inventory management systems
Software that tracks parts usage, triggers reorder points, and manages truck stock levels can help prevent both stockouts and excess inventory.
Spend and expense management systems
A spend and expense platform can streamline parts purchases, track job costs, and eliminate manual expense reports. When techs can quickly document purchases and managers can see spending in real-time, the entire operation runs more smoothly.
How BILL Spend & Expense can help improve your tech efficiency
BILL Spend & Expense significantly reduces the administrative burden that kills tech efficiency. When your technicians spend less time on paperwork and expense reports, they spend more time generating revenue.
Instant receipt capture and documentation
Your techs can capture receipts instantly with their phones, eliminating the evening paperwork pile. No more lost receipts, no more searching through truck consoles, and no more reconstructing purchases from memory. Every parts purchase gets documented immediately at the point of sale.
Automated expense tracking with BILL Divvy Cards
Parts purchases get logged automatically when techs use their BILL Divvy Cards,* creating real-time visibility into job costs. Each transaction appears instantly in your system with merchant details, amount, and timestamp. Your office knows exactly what's being spent without waiting for paperwork.
Custom budget controls by job and technician
Set spending limits by job, month, category, and more to ensure techs have the purchasing power they need without overspending. Create custom rules for different types of purchases or different team members. Emergency calls can have higher limits while routine maintenance stays within standard budgets.
Seamless integration with existing systems
BILL integrates with your accounting software to eliminate duplicate data entry. Expenses flow automatically into your job costing and financial reports. For HVAC businesses managing multiple trucks and technicians, this transforms expense management from a time drain into a competitive advantage.
*The BILL Divvy Card may be issued by one of Divvy Pay, LLC’s bank partners (bill.com/bank-partners). The BILL Divvy Card is not a deposit product. For your specific lender, see your Card Agreement.
