Digital Dealer - November 2017 - 17

...COSTS RELATED TO DIRECTLY REPLACING
AN EMPLOYEE CAN BE AS HIGH AS 50-60% OF THE
EMPLOYEE'S ANNUAL SALARY, BUT THE TOTAL
COST OF TURNOVER CAN REACH AS HIGH AS 90200%!"
aged without considering
how the marketplace and
leadership roles have
changed. Continuing the
paradigm of ignorance.
7. Slow to no decision making from the
management team and
dealer principal. People
get tired and frustrated
when the management
team says they will do
something then it never
happens.
8. No fixed processes
for growing the store at
all profit points. Again,
lacking direction towards
the roadmap for success.
9. No clearly stated
written job descriptions.
No wonder employees are leaving. Who
would want to work in an
environment that breeds
confusion, conflicts and
dysfunctionality? People
want to feel secure with
their workplace. Most
business owners believe
their employees are
loyal - and some may
be. However, they are
mistaken - the swell of
discontent doesn't discriminate. It's there, right
under the surface from
the minimum wage worker right up to the executive team. A recent Harris
Interactive poll found
that over 74% of those
employed are waiting for

the right opportunity to
jump ship. 74%! Studies
have shown the costs
related to directly replacing an employee can be
as high as 50-60% of the
employee's annual salary,
but the total cost of turnover can reach as high as
90-200%! Now multiply

success. If you claim to
be professional - act like
it.
It all starts at the top
is something we have all
heard repeated over and
over again yet it seems to
slip off lips all too easily
with no action associated
with it and continues to

A RECENT HARRIS
INTERACTIVE POLL
FOUND THAT OVER 74%
OF THOSE EMPLOYED
ARE WAITING FOR THE
RIGHT OPPORTUNITY TO
JUMP SHIP. 74%!"
that by three out of four
employees...wow!
One thing is certain.
If you do not have the
above-mentioned nine
points in place you will
not only have a difficult
time keeping employees
but an equally difficult
time attracting new hires.
The exception is hiring a
sales consultant who has
worked at five or six other
stores because he/she is
a typically a short-timer
anyway. However, if you
want to attract young,
smart and energetic folks
or military you better be
able to show them these
written elements for their

generate continued problematic issues we deal
with in this industry. The
primary one being lack of
top-down accountability.
This will most certainly
encourage similar unaccountability for your sales
and service managers
and team members to
simply do whatever they
wish to do. This lack of
accountability to processes then permeates
the entire dealership to
new levels of complacency and mediocrity and
leads to attrition. If you,
as a leader, truly want to
develop new processes
and take the store to

new heights you have to
stop falling in love with
an average approach
in the way you run your
store, average people
and average results. Do
something that gives
employees empowerment
to become their best. Just
wake up one morning and
say adios to the status
quo and develop a new
day with a new way.
The following is a partial road map to consider
implementing in your
business:
MRD - MANAGEMENT
RELATIONSHIP
DEVELOPMENT:

An all-inclusive departmental dealership campaign must be adhered
to. The entire management team must work
together as a single leadership team committed to
accepting and selling the
positive new ideas and
processes to come. The
team must instill a positive atmosphere of 'great
improvements are coming
to help us grow the business' and 'wait until you
see the new and exciting
ideas coming to help you
become your personal
best.' Show people that
they will be successful by
following certain corporate principles.

D I G I TA L D E A L E R . C O M

Continued on pg. 18

NOVEMBER 2017

17
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