Dealership employment grew 3.4% and topped 1 million people last year, with median weekly earnings of $976, according to the National Automobile Dealers Assn.’s 2014 Dealership Workforce Industry Report. However, turnover is still taking a toll on dealership overhead, with an average rate of 36%.
Maintaining and retaining high performers always starts with recruiting. When identifying the type of person you want for a given position, look beyond experience and education. Set up a model that considers the qualities, work styles and strengths of top performers in the position you are looking to fill.
Another consideration is to think past how much you are willing to pay in commissions.
Today’s recruits are looking for a career path. The opportunity to advance is as important as a paycheck. When hiring, clarify goals and metrics that an employee must achieve for advancement, and provide a roadmap for them to follow to get to their destination.
New hires need tools to succeed, and the right training and mentoring are critical. The most successful dealerships are those with a culture that encourages education and mentorship and fosters a community in which team members support one another.
Another reason good sales managers and F&I producers are recruited out of a dealership is because their compensation plan was changed, resulting in less take-home pay. When creating your job descriptions, determine a pay plan for each position based on percentages you are willing to pay. Then stick with it when your people succeed. If an F&I producer is taking home a fat check, that means the dealership is making that much more.
Lastly, take account of the work/life balance of your employees, especially if you are looking to hire young talent.
Generation Y repeatedly has stipulated that they want to be a part of an organization that is about more than making money. They want a good work/life balance. The NADA study says dealerships are seeing an increase of Generation Y employees, which it attributes to across-the-board cuts in dealership hours, as only 13% of dealerships surveyed schedule sales consultants to work more than 50 hours.
While this might make you cringe, think about productivity in a different way. Numerous studies have demonstrated that employees who live full lives tend to be the most productive.
Work/life balance does not have to mean complete flexibility for every employee, but rather schedules tailored to individual dealerships and their respective cultures. Good work/life balance programs have the potential to:
- Increase employee retention.
- Improve morale.
- Reduce absenteeism.
- Increase engagement and productivity.
- Decrease stress and burnout.
Recruiting, training and ramping employees is an investment you don’t want to lose to high turnover. Cultivating a culture of success should include strategies not only for hiring top talent, but retaining them as well.
As you increase your focus on developing and advancing employees, you’ll find you will keep them. You’ll also find they will become even stronger and more loyal, which will serve you well long term.
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