Employee turnover costs you time and money. We have tips on how to hire the right people and then keep them long-term.
Back in 1914, Henry Ford made headlines when he increased his factory workers’ wages to five dollars a day, roughly twice what he’d been paying them. Ford claimed it was so they could buy the cars they built. In reality, he was trying to stem the almost one-in-five turnover rate of workers unused to the speed and monotony of his new integrated moving assembly line.
Obviously, employee retention issues are nothing new. It's extremely unlikely your dealership will reach the level of those early assembly workers, but employee turnover can be a real problem for companies. The costs of turnover pile up, starting with the time and money advertising the job, and then the process of resumes and interviews. When you find someone, there’s training to cover. It usually takes time for a new hire to become completely familiar with the job and surroundings, and during that period, they’re likely not generating their highest revenue for your company. With so much at stake, look at these tips to keep turnover to a minimum.
Look at why people are leaving. Don’t just let them go; try to schedule an “exit interview” where you discuss the reasons. It’s possible you could address the problem and that person will give it another chance. If not, it may give you insight into improvements that could prevent others from quitting.
Hire the right people. That’s obvious, but in today’s tight market, you may be tempted to grab the first person who comes through the door. In addition to qualifications and work experience, there may be factors that may not immediately come to mind. Someone with a long commute may be fine with it when they’re fresh into the job, but after a longer period of that daily trek, will they take all the training you’ve invested in them to a dealership that’s closer to home?
Be cautious also with people whose resumes skip among various jobs and industries. There’s always the possibility that someone coming in from outside automotive or sales can positively shake things up with a new perspective – and, of course, everyone in the business today had a “first day” in it. But that said, this isn’t always an easy industry for a newcomer. You could spend a lot of time and money training someone who’s just seeing “if it’s a good fit” and who soon decides it isn’t.
Train new employees properly. A common complaint is from people who felt they got rushed or inadequate training, and then felt pressured because they weren’t fulfilling the job’s requirements. Be sure you’re adequately explaining everything, and giving your trainee time to take it all in and learn all the details. And it isn’t just new employees either; when new procedures are implemented, be sure everyone is completely familiarized with them. Training should be a continuous process, because people who feel “left behind” may look elsewhere.
Ask for improvements. Encourage people to suggest ways to improve procedures and the dealership overall. They’re your “boots on the ground” and can see issues that you might not. And pay attention when new people say, “That’s not how we did it at my old place,” because that method might be better than yours. Listening to and incorporating employee feedback can improve the dealership and make people feel valued. If they aren’t, they may look for another place where they are.
Offer opportunity. It’s not as easy to move up in a dealership as it is in a large corporation, but people like to know there’s a chance to advance when possible. Sometimes even a lateral move can freshen people and make them want to stay. Talk to everyone regularly about their goals and aspirations.
Watch for conflict. No business goes smoothly 100 per cent of the time, but look out for the same issues showing up consistently – often involving the same person, whether it’s gossip, stealing customers, or placing blame – and take action. People will quit if they feel that things are never going to get better.
Pay and perks. Just as Henry Ford did, you may have to revisit your compensation rates to keep your employees from looking elsewhere. These aren’t always easy times, but you have a lot of time and money invested in your employees and it’s expensive to replace them. And don’t underestimate the value of little perks, which might not cost all that much but which make people feel wanted and appreciated. It could be a BBQ lunch, tickets to a sports event or movie night, or an occasional day off with no questions asked about why it’s needed. Even just saying, “You did a really good job there” can lift spirits. People who feel appreciated and fairly compensated tend to stick around.