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Strategies

Reduce  to
Turnover at
Dealership Your

BUILD A BLUEPRINT | PROMOTE YOUR EMPLOYER BRAND | ONBOARD FOR THE LONG HAUL  

MAKE ORIENTATION MATTER | TRAIN & INVEST IN THE FUTURE 


CONTENTS
03 10
INTRODUCTION PROMOTE YOUR
EMPLOYER BRAND
14
MAKE ORIENTATION
MATTER

06 12 15
Take a look at a snapshot of how the
turnover crisis is impacting the auto Establish your company as an employer of Establish your company as an employer of
industry. choice to your target prospects. choice to your target prospects.

BUILD A BLUEPRINT  AUTOMATE EMPLOYEE TRAIN & INVEST IN THE


Discover the "soft skills" recruiters ONBOARDING FUTURE
should look for based on research by two Set employees on the road to success Build the foundation for a career vs. a job.
 Havard's Business Review authors.  from day one with a streamlined Give employees a place to grow.
onboarding process.
INTRODUCTION

Employee turnover is a multi-billion dollars a year


problem for the auto industry

Simply put - bad hires are affecting everything from the customer experience to the bottom line for
today’s auto dealers. And the question the industry finds itself grappling with repeatedly is why?

Despite dealers paying employees nearly 8 percent more and upping head count an average of 4.3
percent, the turnover within the auto industry continues to accelerate at alarming rates. 

3 | STRATEGIES TO REDUCE TURNOVER AT YOUR DEALERSHIP • ALL RIGHTS RESERVED • © NETCHEX 2017 
In large part, the problem with dealership turnover
comes down to hiring practices. Most dealerships lack
the time to develop a proper hiring strategy and often
find themselves hiring out of necessity to quick fill an
open position.

"Most dealerships have a better process for buying


office supplies than they do for hiring people," said
Adam Robinson, CEO of Hireology, recently told
Automotive News. "It's already hard enough to be a
dealer. Dealers can't control cheap private-equity
dollars consolidating stores. They can't control interest
rates, recalls, regulators. They can't control ride-
sharing or nondealer models. The only thing they have
100 percent control of anymore is who they put on their
payroll.”

While some reasons for turnover may be out of


dealers control, this publication will explore some
steps you can take to recruit, hire and retain top
talent.

4 | STRATEGIES TO REDUCE TURNOVER AT YOUR DEALERSHIP •

ALL RIGHTS RESERVED • © NETCHEX 2017 


STRATEGIES TO REDUCE
TURNOVER AT YOUR
DEALERSHIP
BUILD A
BLUEPRINT
Developing an understanding of the specific
talents and “soft skills” job candidates need
is an essential part of successful recruitment
and reducing dealer employee turnover. Soft
skills, also known as people skills, are
defined as attributes that enable someone to
interact effectively and harmoniously with
other people. However, most recruiters can
tell you it can be difficult to measure these
skills during the interview phase.

Researchers, David Mayer and Herbert M.


Greenberg, spent seven years observing sales
performance in the retail automotive, insurance,
and mutual funds industries to determine the
characteristics that can predict sales success.
Their findings were published in the Harvard
Business Review article "What Makes a Good
Salesman."

Their basic theory states that a good salesperson


must have two basic qualities for success:
empathy and ego drive.

6 | STRATEGIES TO REDUCE TURNOVER AT YOUR

DEALERSHIP • ALL RIGHTS RESERVED • © NETCHEX 2017 


"Empathy, the important central ability to feel as the other fellow does in order
to be able to sell [them] a product or service, must be possessed in large
measure. Having empathy does not necessarily mean being sympathetic. One
can know what the other fellow feels without agreeing with that feeling. But a
sales[person] simply cannot sell well without the invaluable and irreplaceable
ability to get a powerful feedback from the client through empathy."

7 | STRATEGIES TO REDUCE TURNOVER AT YOUR DEALERSHIP • ALL RIGHTS RESERVED • © NETCHEX 2017 
"The second of the basic qualities absolutely needed by a good sales[person] is a
particular kind of ego drive that makes them want and need to make the sale in a
personal or ego way, not merely for the money to be gained. [Their] feelings must be
that they have to make the sale; the customer is there to help them fulfill their personal
needs. In effect, to the top salesperson, the sale—the conquest—provides a powerful
means of enhancing their ego. Their self-picture improves dramatically by virtue of
conquest and diminishes with failure."

8 | STRATEGIES TO REDUCE TURNOVER AT YOUR DEALERSHIP • ALL RIGHTS RESERVED • © NETCHEX 2017 
FIND CANDIDATES WITH THE RIGHT
SKILLS

powered by:
Hireology

Interview guides let your Objectively measure candidate Quickly and easily test
team ask the right questions potential to help you select the potential applicants to see
to gauge each candidate's right candidate to join your how their skills would
potential team. translate on the job 

Learn more:
Call (877) 729-2661 or visit us online www.netchexonline.com
19

Promote Your
Employer Brand

What is an Employer Brand? An employer brand communicates that


your organization is an employer of
People tend to think of branding in terms of a choice.
company’s logo or brand name,  like Coca- Steps to Promote Your Employer Brand
Cola. But branding extends far beyond these
common conventions. Today’s HR Develop your Employee Value Proposition -
professionals have had to branch into define the key benefits offered by the
something called employer branding to company as an employer
engage top talent. Define your brand identity - determine
what sets your brand apart from other
The Society for Human Resource Management employers, specify the text, imagery, etc.
describes an "Employer Brand" as an that represent your brand and "bring it to
important part of the employee value life"
proposition.  It is essentially what the Be consistent - utilize branded career
organization communicates as its identity to portals and onboarding tactics that appeal
both potential and current employees. It to job candidates that fit your overall
incorporates a company’s mission, values, company culture/identity
culture, and personality. Be social - incorporate social networks such
as Facebook and  LinkedIn to engage
Building and promoting your employer brand candidates. Incorporate images and posting
can have a positive impact on employee that depict your company culture and
engagement and turnover. candid "Day in the life" activities at your
orgainization
10 | STRATEGIES TO REDUCE TURNOVER AT YOUR DEALERSHIP • ALL RIGHTS RESERVED • © NETCHEX 2017 
BRANDED
powered by:
Hireology

RECURITING 

Custom employment website Highlight key employee benefits Describe your career path for
that lets top candidates to excite applicants to apply job seekers and stand out as a
quickly learn about your and join your team.  company with a plan for
business and team. employee advancement.

Learn more:
Call (877) 729-2661 or visit us online www.netchexonline.com
Automate 19

Employee
Onboarding
In order to effectively manage a structured
onboarding, dealers should consider
automating their onboarding process with
integrated Human Capital Management (HCM)
solutions. Automation allows dealers and
their HR managers to reduce the time needed
to begin onboarding a new hire and save
money by going paperless.
When onboarding is automated through a HCM, new
hires only have to enter pertinent information like their
name, address, and social security number once. The
data is automatically populated for payroll, benefits,
and direct deposit information. This reduces the time
spent on paperwork on the first day, and in some
cases, allows the new hire to already have necessary
items such as badges, computer access, and more
available upon arrival.
There are numerous additional benefits to automating
your employee onboarding.
Top benefits include:
1. Time and cost savings - Automating the onboarding
process allows companies to save
both time and money by reducing the number of hours
HR departments have to devote
to onboarding a new hire.
2. File storage - Employers are typically required to
keep new hire paperwork a minimum of two years. For
a growing company, this can mean mountains of
paperwork. An automated onboarding solution allows
employers to securely store employee information in
an online location.
3. Data analytics - With growing government
compliance issues like the EEOC’s pay data
reporting, having insight into onboarding analytics is
valuable to today’s HR teams.

12 | STRATEGIES TO REDUCE TURNOVER AT YOUR DEALERSHIP • ALL RIGHTS RESERVED • © NETCHEX 2017 
AUTOMATED
ONBOARDING

New hires can complete Foolproof to-do list with task User-friendly system that can
their profile and tasks from countdown clocks to keep capture forms like I-9,
their phone or tablet onboarding on track Federal and State tax forms

Learn more:
Call (877) 729-2661 or visit us online www.netchexonline.com
MAKE
ORIENTATION
MATTER
Doug Krey, Senior Vice President of • Tell your success stories. Present
Human Resources Systems and people who have risen through the
Services for Hilton Worldwide ranks so your new employees can see
recommends the following  in an that advancement is possible. People
effective orientation: “WHY identify with success stories. They say
to themselves, “If she can do it, so can
• Resell the company. The applicant I!” Give your new employees an
was sold on the property when he or SHOULD I understanding of the various career
she said “yes” to your job offer, but paths that are open to them if they
how long ago was that? Even if the meet or exceed company
interview was the previous day, a lot expectations. They should sense,
can happen in the life of an applicant. WORK FOR “This [place] helps people grow, and
He may have seen another newspaper since I want to grow, this is a good
ad that looked interesting. (The place for me right now”. Please take
innocent applicant doesn’t know that YOU?” notice of the “right now”. Understand
if it sounds too good to be true, it that today’s employees feel they must
probably is.) Or she may have • Give employees something of value. Give maintain control of their own careers.
received a call back from another employees something of value to them during They’ve seen friends, relatives,
interview offering a comparable job. the orientation-something that makes them feel and acquaintances get laid off from
The orientation is your renewed like they invested their time well. Sure, you long-term jobs, so to them, corporate
opportunity to answer the often heard should pay them for their time, but help them to loyalty to employees is virtually dead.
question, “Why should I work for feel that they actually learned something. They know that they must be
you?” Perhaps it’s something about goal setting or time responsible for continuing to be
management or stress reduction or software. marketable, which leads us to our
• Explain and quantify the benefits. Whatever you choose, make sure it has a high next point.
Here’s your chance to communicate perceived value for the new employees.
how much your hotel invests in all Otherwise, you’re wasting your time and the • Provide a mentor or coach. Be sure
those employee benefits. Most new company’s money, and what’s worse, you’re your orientation covers the fact that
employees-most all employees for distancing the new employees you want to new employees will receive a mentor
that matter-haven’t a clue what the connect with. or coach. These very important
real costs are. Health and major people will help new employees
medical insurance benefits are too • Clarify expectations. Let employees know develop the career plans they want
often taken for granted. You’re likely what the company will do for each of them and and need. Sometimes, the mentor is
to be paying more than employees what will be expected from them as well. Clear the person’s supervisor or manager. It
think you are. What does the 401(k) expectations make better relationships. doesn’t matter who-just make sure
cost the company every year? What Unrealistic expectations that subsequently go those counselors are taught how to
are those stock options really worth? unfulfilled are a recipe for high turnover. effectively mentor or coach.
14 | STRATEGIES TO REDUCE TURNOVER AT YOUR DEALERSHIP • ALL RIGHTS RESERVED • © NETCHEX 2017 
TRAIN & INVEST IN
THE FUTURE
A strong contributor to employee
retention is development opportunities
which give staff opportunities to
expand their skills. Supporting
employee development sends the
message that they are valued team
members and the company is
committed to their success and career
growth.
Some of the reasons to take on development initiatives: •Training adds flexibility and efficiency. You can cross-train
•Training helps your business run better. Trained employees to be capable in more than one aspect of the
employees will be better equipped to handle customer business. Teach them to be competent in sales, customer
inquiries, make a sale or use computer systems. service, administration, and operations. This will help keep
•Training is a recruiting tool. Today’s young workers them interested and will be enormously helpful to you when
want more than a paycheck. They are geared toward setting schedules or filling in for absences. Cross- training
seeking employment that allows them to learn new also fosters team spirit, as employees appreciate the
skills. You are more likely to attract and keep good challenges faced by co- workers.
employees if you can offer development opportunities. •Training is essential for knowledge transfer. It’s very
•Training promotes job satisfaction. Nurturing important to share knowledge among your staff. If only one
employees to develop more rounded skill sets will help person has special skills, you’ll have a tough time recouping
them contribute to the company. The more engaged their knowledge if they suddenly leave the company. Spread
and involved they are in working for your success, the knowledge around — it’s like diversifying your investments.
better your rewards.
•Training is a retention tool, instilling loyalty and Companies like Chrysler are expanding the training mantra
commitment from good workers. Staff looking for the and offering employees opportunities to earn an associate,
next challenge will be more likely to stay if you offer bachelor's, or master's degree at Strayer University.  "The
ways for them to learn and grow while at your company. new benefit is geared twoard attracting and retaining the
Don’t give them a reason to move on by letting them right kind of talent," says AL Gardner, Vice President of
stagnate once they’ve mastered initial tasks. Dealer Network Development and President and CEO of the
Chrysler Brand. 
15| STRATEGIES TO REDUCE TURNOVER AT YOUR DEALERSHIP • ALL RIGHTS RESERVED • © NETCHEX 2017 

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