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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http://www.dealerstrong.com/

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