Automotive News - June 10, 2019 - Bank of America - S4
Retaining employees can
increase gross profits:
$500K
for dealers
$900K
for luxury dealers
Source: ESI and NADA.
seeking, interviewing and training new employees," says
Fleming Ford, vice president of people and performance
at ESI Trends.
There's also a price to pay with customers in today's
digital-first world, where car shoppers do most of their
research online before visiting a dealership.
"Customers come in with more knowledge and more
information than these new employees who've been
thrown on the floor," Ford says. "Dealers can't continually
have smart, informed customers interacting with newbies
- it can ruin a dealership's reputation."
Dealers also need to adjust for a new workforce with
new expectations. "It's dangerous to generalize, but the
younger generation is more focused not just on making
money but on benefits, including their work-life balance,"
says Derek Comestro, a Bank of America Merrill Lynch
market executive for Dealer Financial Services. "They
also want to be constantly challenged, to see more rapid
advancement. We see that across all industries. If they're
not moving up, they're moving on."
Industry consultants and people management experts say
dealers can begin to address the problem by taking a more
organized and disciplined approach to attracting, hiring and
retaining employees. And it has to start with a commitment
from leadership.
"It's a hard cycle to break without a lot of intent as a
leadership team," Ford says. "A dealership needs to be
committed to getting the best people and equipping them
with skills and confidence. And sometimes getting to that
point means throwing all your systems out and starting over."
4
Adam Robinson, CEO of the Chicago-based recruiting
company Hireology, says that despite the research, "broadly
speaking, dealers have not adjusted their approach to
attracting and hiring the right team members to reflect
their strategic importance. The human resources function
and approach to talent acquisition has not been elevated
to the level of strategic oversight required.
"And the potential return on dollars in this area is
massive. There's huge positive leverage in investing
in getting the right processes in place."
"Size doesn't matter," Robinson says. "It does not matter
whether you're a single-point operator or a big dealer
group - creating a new approach to hiring and retaining
people before the majority of the market is doing it provides
not only increased profits but a competitive advantage for
your business."
If dealers haven't already done so, Robinson says, they need
to begin to pay attention to better hiring practices. "Within
the next 12 to 18 months, it won't be optional if you want
to compete for talent," he says. "Dealers who don't treat
hiring as a strategic core function, who don't have the
infrastructure and processes in place, will struggle.
"It comes down to this: Do you want first crack at the
best available talent in your market? Or do you want to
hire from a pool of applicants the other dealers decided
weren't good enough?"
From Ford's perspective, the employee team has become
the key differentiator for a dealership.
"With internet shopping, customers can get the same car
for basically the same price anywhere," she says. "That
means if you're a general manager, you have to ask: What is
my competitive advantage?' Increasingly, that's providing
a top-level experience at the store, an experience so good
that people want to share it with friends and write about
it on social media.
"Providing that experience comes down to having the right
people in place, people who are more knowledgeable and
skilled than your competition."
Automotive News - June 10, 2019 - Bank of America
Table of Contents for the Digital Edition of Automotive News - June 10, 2019 - Bank of America
Automotive News - June 10, 2019 - Bank of America - Intro
Automotive News - June 10, 2019 - Bank of America - S1
Automotive News - June 10, 2019 - Bank of America - S2
Automotive News - June 10, 2019 - Bank of America - S3
Automotive News - June 10, 2019 - Bank of America - S4
Automotive News - June 10, 2019 - Bank of America - S5
Automotive News - June 10, 2019 - Bank of America - S6
Automotive News - June 10, 2019 - Bank of America - S7
Automotive News - June 10, 2019 - Bank of America - S8
Automotive News - June 10, 2019 - Bank of America - S9
Automotive News - June 10, 2019 - Bank of America - S10
Automotive News - June 10, 2019 - Bank of America - S11
Automotive News - June 10, 2019 - Bank of America - S12
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