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How to Drive Value Through Recruiting and Retaining Key Employees at Your Dealership

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Presenters

Suzanne MaloDirector, DHG Searchsmalo@dhgsearch.com

Champ RawlsPartner, The Rawls Groupchamp@therawlsgroup.com

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Agenda

• Who are Your Employees?• Recruiting Employees / Talent• Retaining Employees / Talent• Cost of Turnover

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Who Are Your Employees?

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Identifying and Capitalizing on Building a Culture

What it takes to identify, build, and sustain a culture people are attracted too:

+ Why is it important?• What does a losing culture look like - Implied• What does a winning culture look like - Expressed• Why should you care?

– Cost– Profit– Peace of Mind

+ Why top talent gravitate to winning cultures

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Getting an Understanding of Who You Work With

Holistic approach looking at the bottom up and the top down:

+ Bottom Up:• What’s the culture?• What’s my mission?• Who is in charge?

+ Top Down:• How am I motivating my people• Do they know the mission• Do we have clear defined roles and responsibilities

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Expressed Culture – What are You Looking For?

• A commitment to non-negotiables• Core values• Core operating procedures• Reasonable performance expectation• Accountability• An established vison for business development and growth• A dedication to training technology and facilities• A commitment to recruit, train and retain highly qualified support management• A commitment to mentoring replacements for every critical management

position

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The Talent Void

Are you saying or asking?

+ Where’s the talent?+ Why cant I find any good people?+ Why do employees keep leaving me?+ You have a talent void and often times it is self inflicted?

• How do you get out?• Know your employees and figure out if they can answer two things?

– Who is in charge?– What is my mission?

+ And when you have a talent void, you better start recruiting employees

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Recruiting Employees

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Ready to Recruit

That look when you just lost your best employee…

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Recruiting – Passive vs. Active Candidates

• Active Candidates:+ Actively looking for a new job (for lots of

reason, not just unemployment)+ Easy to find because they post resumes

online, respond to job ads, interview with multiple employers

• Passive Candidates:+ 79% of candidates are currently employed+ 61% are open to making a career change+ Not looking for new opportunities+ Not talking to friends to network+ BUT 61% are open to a phone call

• Semi-Active Candidates:+ “Tip-toers”+ Are asking friends to network/keep an eye

out+ Not posting resumes or responding to ads+ Are researching companies that may be

hiring

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Passive and Active

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Recruiting Approach – Reactive vs Proactive

• Reactive:+ Hits the “panic” button+ Runs ads+ Calls everyone you know+ Hires our of desperation+ Makes counter offers to keep

someone

• Proactive:+ Creates employment branding+ Turns employees into recruiters+ Active referral program+ Forecast your needs…Always

looking for talent…with composure

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Recruiting – Employment Branding

• Make People want to work for your company!

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Social Media for the Active Job Seeker

• While the vast majority of Millennials and Generation Xers prefer mobile over desktop, nearly 50% of Baby Boomers are also using mobile.

--Indeed.com

0% 10% 20% 30% 40% 50% 60% 70% 80%

Baby Boomers

Gen Xers

Millenials

Which device does each generation use to job seek?

Mobile Desktop

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Social Media to Find the Passive Job Seeker

• Are you using LinkedIn?• Build your network – it doesn’ttake long• Use searching tool to identify possible candidates• Keep in touch with former colleagues – another source fortalent

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Proactive Recruiting Life Cycle

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Avoid the Potholes in the Hiring Process

• Streamline application process – can you apply online?• Communicate throughout the process• Interview thoroughly – ask tough questions• Don’t be too quick to hire• Reference check, background check, repeat

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Avoid the Potholes in the Hiring Process

• According to the Association of Certified Fraud Examiners the median loss for all cases compiled in 2016 was $150K but 23% of the cases caused losses of $1 million or more.

• “You don’t want people on the payroll who have a propensity to have criminal behavior at work.”

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Retaining Employees

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Top 5 Reasons People Leave a Job

5. Unhappy with pay

4. Lack of flexibility – no work/life balance

3. Bored – no longer being challenged

2. Passion is gone – They don’t love their job

1. Their boss sucks

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What Matters to Them Matters to You

• Majority of the workforce priorities:+ Flexible work schedule+ NOT a six-day work week+ Paid time off+ Benefits+ Bottom line: work/personal life balance

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What Makes an Attractive EmployerOpportunities for career progression

Competitive wages/other financial incentives

Excellent training/development programs

Good benefits packages

Flexible working arrangements

International opportunities

Good reputation for ethical practices

Corporate values that match your own

A reputation as an employer of the best and brightest people

The employer brand

Diversity/ equal opportunities record

The sector in which the organization operates

Other

“Our capacity to attract, retain and manage executive talent does not depend on the compensation package, but rather on our ability tocreate a sense of belonging to an organization that offers a long-term relationship and a professional development opportunity, and that hasa clear conception of itself, of what it wants to be, and of how to achieve it.” -- -Armando Garza Sada Chairman of the Board of Directors,Alfa SAB de CV, Mexico

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Breaking Down Retention

• History has shown that key managers are retained and motivated:+ By personal acknowledgment+ By financial acknowledgment

• Methods of expressing your appreciation would include: + Asking opinions on issues beyond their responsibility,+ Invitation to non-business meetings+ Participation in organizational meetings+ Training opportunities+ The opportunity to take on challenges that leverage their talents and

energies.

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Once You Have Found Them – How Do You Keep Them?

Beyond the Personal Acknowledgement and basic Financial PackageGolden Handcuffs:• Non Qualified Supplemental Executive Benefits

+ Supplemental Executive Retirement Plans (SERP)+ Incentive-based SERP+ Proprietary Management Company

• Stock Ownership Incentive Plans+ Stock Purchase Opportunities+ Restricted Stock Bonus

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Turnover

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What can Employers Do?

Key Takeaways for reducing turnover:

1. Keep work-life balance in mind2. Commend employees when they do a good job3. Encourage growth opportunities and discuss these openly4. Offer competitive salary and benefits5. Provide training opportunities6. Keep them challenged.7. You should keep generational differences in mind but ultimately people have

more similarities

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The Actual Cost of Turnover

• A new employee can take up to two full years to reach the same level of productivity as an existing staff member

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QUESTIONS?