Date post: | 09-Apr-2017 |
Category: |
Automotive |
Upload: | dealerstrong |
View: | 372 times |
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Harlene Doane, COO
Hiring, Training and Retaining Talent for Higher Profitability
How to Hire, Train and Retain for Higher Profitability
The Ugly Word2x worse to your business than any 4 letter word
One that most business owners don’t want to talk about … at least as it relates to employees
TURNOVER
Personnel TurnoverNot always a bad thing
Must be monitored
Personnel TurnoverWhen is turnover a bad thing?
• When it’s too high• When it’s too centralized
(department or position)• When it’s the top talent
Turnover Rate1) Average the # of unique
individuals who received a paycheck each month for the last 12 months.
2) Count the # of unique individuals who received a paycheck in the last 12 months.
50
134
Turnover Rate3) Total # of individuals
receiving a paycheck on the last pay cycle.
42
92Subtract #3 from #2. This is total terminations in the last 12 months.
4)
Turnover RateTurnover rate for Sample Motors
Total terminations/avg # of employees * 100%
92/50*100 = 184%
Turnover RatesTurnover Rates
All Industries 42.2% National
Automotive All 36% National
Highest turnover 66% Automotive Sales2015 NADA Dealership Workforce Study
Hard Turnover CostEmployee termination duties 2hr@$15= $30Creating & placing ads 2hr@$15= $30Ad cost or promotions $250Screening, testing, interviewing 15hr@$15= $225
Paying someone else to do the job until new hire begins
80hrs@$15*1.5= $1,800
Orientation and training of new hire Trainer – 40hr@$20= $800New Hire – 40hr@$15= $600
Total Hard Cost $3,510
Sample Motors Turnover Cost
$3,510 Hard Cost+$7,020 Soft Cost (2x Hard)$10,530 Total Cost Per New Hire
X 92
$968,760
HiringSlow Down to Get it Right
5 Steps to Hire Right1. Write a Clear Job Description 2. Create Great Ads3. Screen & Test4. Interview5. Additional Interviews & References
Write a Clear Job Description• Job title• Immediate supervisor• Purpose• Duties & Responsibilities• Qualifications • Physical requirements• Direct reports
Great AdsYou are selling the job - Why work for you?
Use your job description for the base
Be creative (but not deceitful)
Highly successful auto dealer is searching for the highest caliber sales professionals to join the automotive industry and their expanding operation.
If you don't have automotive sales experience, don't miss this opportunity to be trained to excel. If you are a high energy individual, who is motivated and focused on your success this is the opportunity to excel.
If your past employment includes focusing on customer service, or working with a very defined process this position is a great fit for you. There is no need to be afraid of sales. Sales is simply a defined process of meeting the needs of the customers in this dealership.
Job Requirements*Valid drivers licenses*Able to clear an insurance screen to operate our vehicles*Ability to follow direction and process consistently*Ability to deliver a high level of customer satisfaction*Ability to communicate and present yourself in a professional manner*Ability to execute customer follow-up as mandated by your immediate supervisor.
Exceptional earning potential and room to grow with a expanding company.
39 ad views 7 Responses
Looking for that upbeat winning personality that loves people and solving problems.Entry level - Full time position with opportunity for growth.
DUTIES & RESPONSIBILITIES:• Provide an outstanding customer experience• Follow direction in showcasing company products and options• Maintain accurate customer records• Be professional in dress and mannerQUALIFICATIONS:• Computer skills• Ability to prioritize effectively; strong organizational skills.• Strong written and oral communication skills• High school education or equivalent
All training provided. Base Salary plus bonus eligibility from day one.
702 ad views 186 Responses
Screening & TestingJob description matchAccomplishmentsDuties or responsibilities
Test for skills needed
Interviewing1. Know what you can and can’t ask!2. Resume/application verification3. Set of standardized questions
a. Real dealership scenariosb. Attitudes/bias
Additional Interviews & References
Don’t be hesitant to hold multiple interviews, especially for management positions
References – the good and bad
TrainingTrain for Results
What to Train1. Automotive2. Dealership3. Position
Grade Your Sales TeamWhat % of your sales staff can execute these exactly as you want in your store?Execute a dealership approved meet and greet?Ask an approved inoffensive qualifying credit question?Take a proper and complete credit application?Conduct a proper walk around of a vehicle that matches the customer’s ability to buy?Present a write-up (4 square) as per procedure?
83% avg
95
80
85
80
75
When to Train• Upon Hire• Ongoing
• Daily (in store)• Weekly (in store)• Monthly (webinars, peer groups)• Annually (corporate, conferences, conventions)
Why TrainTo improve profits!
To improve retention!
5 Reason Employees Leave Employers
1. Job was not as expected2. Compensation not as expected3. Feeling undervalued or underappreciated4. Lack of training/coaching5. Boredom/ lack of challenge
Training Solves
The biggest benefit of training and retaining your people is …
increased productivity, because well trained, tenured employees
allow you to have fewer people to do the same amount of work!
RetainingReduce Voluntary Turnover
– Keep the Talent
8 Ways to Retain Talent1. Provide clear expectations2. Set realistic goals3. Provide opportunities for growth/reward4. Recognize performance
8 Ways to Retain Talent5. Provide feedback6. Share your passion and vision 7. Foster honest communication8. Offer competitive compensation packages that your
employees want
The New PlanHire RightTrain for ResultsRetain Talent
Build a HTR PlanDetermine turnover rates• Store• Department• Position• Voluntary vs. Involuntary
Create focus for each area•Hiring • Training•Retention
Build a HTR PlanDetermine how to execute•Current Staff vs. New Hire •Deadlines, Dates, Schedule• Identify Obstacles to Execution and
Eliminate
Build a HTR Plan#1 Reason things don’t get
accomplished …they never got started.
#2 Reason … they didn’t have a deadline
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