3. Hiring and Retaining the Best
In the September 2015 issue of Car and Driver Magazine the
Maxima is ranked number one in full-size sedans…It definitely
takes the luxury trophy in its price range.
6. Hiring and Retaining the Best
What Are the Costs of Employee Turnover?
q Exit costs
q Recruiting costs
q Interviewing
q Hiring
q Orientation
q Training
q Compensation and
benefits while training
q Lost productivity
q Guest dissatisfaction
q Reduced or lost
business
q Administrative costs
q Lost expertise
q Others
7. Hiring and Retaining the Best
Turnover Cost Exercise
q Turnover cost varies by job role:
q 30 to 50 percent of annual earnings
for entry level
q More for managers, techs, high skilled
labor, etc.
General Managers using this worksheet estimated:
q Entry-Level Hourly (Lot Staff, Admin, etc.) $1,500 - $5,000
q Product Specialists $10,000 - $25,000
q Technicians and Used-Car Managers $25,000 - 100,000
How Much Does Turnover Cost?
8. Hiring and Retaining the Best
So…Our Sales Force Will Improve With
ü Professional Recruiting/Hiring Processes
ü Proper On-Boarding
ü Robust Career Path
ü Meaningful Education Path
ü Better Staff Engagement
ü Led Personal Development
12. Hiring and Retaining the Best
Forbes Magazine Top Employers
1. Work-Life Balance
2. Career Opportunities
3. Communication
4. Compensation and Benefits
…we often see that employees are receptive to those employers
who continually work hard to communicate a clear company
vision, goals, and direction of the company.”
Jacquelyn Smith, Forbes Magazine
The survey addressed eight workplace topics:
5. Fairness and Respect
6. Employee Morale
7. Recognition and Feedback
8. Senior Leadership
Employment
Value Proposi8on
13. Hiring and Retaining the Best
ü Examine your dealership from
an applicant’s perspective
ü Know your local job market
ü Match staff to client types
What are some best practices for reducing turnover?
So…How Can Turnover Be Minimized?
14. Hiring and Retaining the Best
What Are the Dealership Variables?
Regional / Local
§ Cost of living
§ Employment supply versus demand
§ Job market, economy, unemployment rate
§ Primary make-up of local workforce
§ Manufacturing
§ Government
§ Agricultural
§ Professional
§ Technical
§ Military
Employee Classification
§ Management
§ General Manager
§ Department Managers
§ Production
§ Sales Managers and Sales Consultants
§ F&I Staff
§ Service Advisors
§ Technicians
§ Parts Counter Person
§ Support
§ Lot Staff
§ Receptionists
§ Inventory Staff
§ Cashiers
§ Administrative
§ Accounting Office Staff
Dealership Characteristics
§ Luxury versus non-luxury brand
§ Perceived brand-based opportunity
§ Location (ease of commute/access)
Primary factors fall into these categories, but there are others…
15. Hiring and Retaining the Best
Qualifications
§ Industry-specific experience
§ Technicians - Critically important
§ Service Advisors – Very Important
§ F&I – Very Important
§ Salespeople – Somewhat important
§ Brand-specific experience
§ Technicians – Very important
§ Service Advisor – Significantly important
§ Salespeople – Somewhat important
§ F&I – Less important
Production/Earnings History
§ Production personnel are primarily
rated based on production history
§ Support and administrative
personnel are primarily rated based
on earnings history and experience
§ Management personnel are rated by
both production history and earnings
history
Employability
§ Background
§ References
§ History
Personal Traits
§ Character/integrity/work ethic
§ Predicted CSI performance
§ Professional appearance/demeanor
Recruitment Target Groups fall into these categories, but there are others…
What Are the Dealership Variables?
17. Hiring and Retaining the Best
Recruit, Interview & Selection
The main roles of operational recruitment processes are:
1. Define rules and tools for the job description preparation
2. Open the vacancy using the right channel
3. Find job applicants quickly and make a quick pre-screening
4. Conduct the lowest possible number of job interviews to
come to the conclusion
5. Measure the performance of recruitment processes and
implement improvements/quickly
6. Provide inputs into the strategic recruitment processes
Recruit,
Interview
& Selec8on
18. Hiring and Retaining the Best
Recruitment is not a one-person responsibility, the
recruiter need to enlist everyone
q Hold dealership manager accountable for building a team
q Advisors or techs get override on referred technicians
q Spiff all employees
q Incentivize Internet manager to attract candidates
q Social media
q Job boards
q Dealership customer database
Recruit,
Interview
& Selec8on
Recruit, Interview & Selection
19. Hiring and Retaining the Best
Looking Beyond the Unemployed
q Colleges
q Military bases
q Trade schools
q High school vocational classes
q High school/college internships
q Police – part-time
q Fire Fighters – part time
q Restaurants
q Computer stores
q Auto-parts stores
q Local quick lubes
q Home-improvement stores
q Other retail stores
q Tool-truck operator
Attend job fairs or recruit directly from:
Recruit,
Interview
& Selec8on
20. Hiring and Retaining the Best
Staff Creatively and Benefit from Diversity
q Job sharing
q Part-time positions can yield otherwise
unavailable applicants
q College students
q Retirees
q Office workers
q Family members of employees
q Active/discharged/military
Recruit,
Interview
& Selec8on
21. Hiring and Retaining the Best
Staff Creatively and Benefit from Diversity
q Hiring females
q Many dealers claim an increase in CSI scores
q High CSI often generates better customer retention
q Generally well-received in customer-contact
positions
q A more diverse dealership staff will more closely
mirror the dealership customer base
Recruit,
Interview
& Selec8on
22. Hiring and Retaining the Best
Source and attract qualified applicants with targeted, cost-saving
efficiency
q Integrates with industry leading platforms:
q Job boards
q Social media channels
q Branded career sites
q Pre-screening tools helps you focus on the top applicants
q Shows how candidates fit the job’s Target Profile
q Allows review of a candidate’s behavioral priorities directly
from a CRM platform
q Verifies job fit
q Skills test results
q Profile assessments
CRM Recruitment Software
Recruit,
Interview
& Selec8on
23. Hiring and Retaining the Best
q Reduces hiring risk with a click of a button by providing:
q Background checks
q Criminal reports
q Employment and education verification,
q Skill survey automation holds candidate responsible for
collecting references
q Visibility and accountability through reporting and
dashboards to manage hiring performance.
q Metrics measure your hiring efficiency to hold your team
accountable for results
CRM Recruitment Software
Recruit,
Interview
& Selec8on
25. Hiring and Retaining the Best
A newly hired employee usually goes out of their way to be
efficient and professional during the first hours and days.
Dealerships often fail to be efficient and professional
during that critical onboarding time period.
q Dealership HR managers are usually payroll clerks that
have been given that title and limit their involvement in
onboarding
q Hiring managers need to be trained to fill that void
q A robust and repetitive process must be put in place
q Staff introductions are an important onboarding element
Socializa8on,
Orienta8on
& Onboarding
Proper Onboarding is the most overlooked element
of employee retention
26. Hiring and Retaining the Best
q Provide perks for long tenure, top producers
q Set up a buddy system so culture questions can be
answered by someone with experience but not in
management
q Provide career paths for each position
q Create tiered job titles
q Sales consultants, service advisors, techs, others
q Tie qualification to:
q Performance and performance reviews
q Factory and in-dealership certifications
q CSI and retention Socializa8on,
Orienta8on
& Onboarding
Insulate your best, most-tenured people from
competing employers
29. Hiring and Retaining the Best
q New to industry or new to Dealer
q State Licensed
q Completed Dealer New-Hire Orientation/Training
q Complete factory certification
q Complete Level-2 Dealer Sales Curriculum (all courses)
q Average __ deliveries per month for 3 consecutive months
q Meet or exceed dealership CSI requirement
q Attend Product launch events or test-out, or manager
waiver
q Complete factory “advanced” certification (if no program in
place, select sales/F&I courses)
q Complete Level-3 Dealer Sales Curriculum (all courses)
q Average __ deliveries per month for 3 consecutive months
q Meet or exceed dealership CSI requirement
q Mentor Level – 1 Sales Consultants
q Level 3 achievement is a pre-requisite for advancement
Level – 1
Sales Consultants
Level – 2
Sales Consultants
Level – 3
Sales Consultants
Assistant Sales
Manager
q Coach & Train Level – 1 & 2 Sales Consultants
q Monitor Sales Floor
q Handle/Oversee phone-ups
q Follow-up showroom traffic with sales consultants daily
q Direct and monitor delivery process
q Complete factory sales manager certification
q Complete Dealer Assistant Sales Manager Curriculum
Standard
Pay Plan
Extra Pay and/or
Perks/Privileges
Extra Pay and/or
Perks/Privileges
Assistant Manager
Entry Level Pay Plan
Career
Path - Sales
30. Hiring and Retaining the Best
§ Complete factory “advanced” certification (if no program in
place, select GM courses)
§ Complete classes for Emerging Leaders (if selected)
§ Coach & Train Senior Sales Managers
§ GSM is a pre-requisite for advancement to GM
Assistant Sales
Manager
q Coach & Train Level – 1 & 2 Sales Consultants
q Monitor Sales Floor
q Handle/Oversee phone-ups
q Follow-up showroom traffic with sales consultants daily
q Direct and monitor delivery process
q Complete factory sales manager certification
q Complete Dealer Assistant Sales Manager Curriculum
Assistant Manager
Entry Level Pay Plan
q Conventional Sales Manager Duties
q Complete Dealer Sales Manager courses
q Coach & Train Assistant Sales Managers
q Complete factory certification
q Complete 3rd Party Training (leadership, etc.)
q Average $_____ PVR after 60 days
q Average $_____ PVR after 120 days
q Meet or exceed dealership CSI requirement
q Complete factory “advanced” certification (if no program in
place, select GSM courses)
q Mentor Sales Managers
q Conduct one staff training session weekly
Sales Manager
New and/or used
F&I
Manager
Senior
Sales Manager
Standard
Pay Plan
Standard
Pay Plan
Extra Pay and/or
Perks/Privileges
General
Sales Manger
Standard
Pay Plan
Career
Path - Sales
35. Hiring and Retaining the Best
Benefit Strategies - What’s wrong with this picture?
Dealers want their best people to be employees for life.
Nearly 40 percent of dealers do not offer match for re8rement contribu8ons
Dealers want employees that place a high value on mutual loyalty.
Approximately half Don’t offer sick leave
Dealers want employees to believe that they care about them and their family.
Roughly 35 percent of dealers do not offer bereavement leave.
Most dealerships would like to hire more women.
Roughly 94 percent of dealers do not offer paid maternity leave.
Do our benefits match the person we wish to attract?
36. Hiring and Retaining the Best
Non-Pay Plan Compensation
§ Spiffs
§ Contests (monthly or quarterly)
§ Longevity incentives
§ Time off
§ Other
Culture
§ Everyone knows the Dealer’s vision
§ Expectations are communicated
and reinforced
§ Company handbook well-written
§ New-hire orientation process
Recognition
§ Awards
§ Internal/intra-company recognition
§ Send letters to OPS residence to
acknowledge achievement
§ Other
Management /Accountability
§ Punctuality, work habits
§ Clean and organized work area
§ Customer follow-up
§ Up to date CRM data entry
§ Dealership protocal
Dealerships have many “levers” at their disposal:
Discover Capability &
Capacity
Exis8ng Pay Plan – Is it working?
37. Hiring and Retaining the Best
Compensa8on
Benefits &
Rewards
Tiered Pay Plan Program - Sample
Tier-1
Tier-2
Tier-3
Tier-4
Tier-5
Tier-6
Hourly Product Specialist
Apprentice Product Specialist
Product Specialist
Executive Product Specialist
Professional Product Specialist
Diamond Product Specialist
Advanced Pay Plan Design
38. Hiring and Retaining the Best
Hourly
q Inflexible work schedule
q No Commission program
q Mandatory Training Daily
q Familiarize with
Dealership
q Learn Sales Process
Apprentice
q Inflexible work schedule
q Small Commission
program
q Mandatory Training Daily
q Work with Mentor
q Begin working with
Guests
q Mandatory Closing Help
q Low Sales Expectations
Consultant
q Inflexible work schedule
q Normal Commission program
q Mandatory Training Weekly
q Work close with Manager
q In the Up Rotation
q Mandatory Closing Help
q Accountable for Monthly Sales
Quota
q Normal Commission Structure
Advanced Pay Plan Design
39. Hiring and Retaining the Best
Executive
q Flexible weekday work schedule
q Normal Commission program
q Mandatory Training Weekly
q Work close with Manager
q In the Up Rotation
q Paid Cell Phone
q $200 Car Allowance
q Accountable for 90 day Rolling
Average Sales Quota
q High Bonus Commission
Structure
Professional
q Total Flexible work schedule
q High Bonus Commission
Program
q Optional Training Weekly
q Minimal Management
Supervision
q Up Rotation Optional
q Paid Cell Phone
q Paid for Mid Size Vehicle
Demo
q Accountable for 90 Day
Rolling Average Sales Quota
q Salary/ Commission/Tenure
Bonus
Diamond
q Set their Own Hours for Work
q High % Commission program
q Training as Necessary
q No Management Supervision
q Not In the Up Rotation at All
q Paid Cell Phone
q Paid for Vehicle of Choice
q Accountable for Annual Sales
Quota
q Salary/Commission/Tenure
Bonus
q Annual Sales Bonus Program
Advanced Pay Plan Design
40. Hiring and Retaining the Best
Low-Cost and High-Yield Employee Benefits
q Employee-purchase programs for computer, software,
other
q Leasing/purchase subsidies for new vehicles
q Generous employee discounts on parts and service
purchases
q Utilize dealership products and services for contest
prizes
43. Hiring and Retaining the Best
Engagement Strategies – Survey Says!
Automotive News – Top 100 Dealers to Work for
Questions with the biggest disparities in the survey*
were:
q There is room for me to advance at this dealership
q My pay is fair for the work I perform
q I can trust what this dealership tells me
q I feel part of a team working toward a shared goal
*Source: Automo7ve News Mentoring
Evalua8ng
& Coaching
44. Hiring and Retaining the Best
Engagement Strategies – Survey Says!
q Require sales and F&I staff/managers to be involved in
the community
q Support with:
q Schedule flexibility
q Dues reimbursement
q Target donations
q Advancement eligibility
q Permeate the community with dealership staff that can
a`ract customers and a`ract employees to the dealership
*Source: Automo7ve News
Mentoring
Evalua8ng
& Coaching
45. Hiring and Retaining the Best
q Build teamwork and encourage camaraderie
q Company outings
q Sponsor tournament and/or other charity
q Sponsor customer-appreciation days and involve
employees in the planning and special assignments
q Re-assign instead of replace employees that are not a
good fit in their current role when possible
q Employee-performance review (more than annual)
Mentoring
Evalua8ng
& Coaching
Engagement Strategies
46. Hiring and Retaining the Best
Engagement Strategies
Employees place a high value on being “in on things”
q Regular process-improvement meetings
q Departmental
q Dealership-wide
q Online forum where employees can offer ideas, make
suggestions
q Track and publicize implementation
q Frequent email updates from GM or Dealer Principal
q Rumor control
q Themed dress-down days
Mentoring
Evalua8ng
& Coaching
