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Dealer/GM News | Trending Industry News
May 23, 2016

4 Steps to Prevent Hiring Mistakes at Your Dealership

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Dealer/GM News | Trending Industry News
May 23, 2016

4 Steps to Prevent Hiring Mistakes at Your Dealership

75% of dealers say they have trouble with their hiring process—here’s how to be the other 25%

There was a time when you might have been able to get away with saying something like this. Those days are long gone. With the amount of data available to hiring professionals with respect to job seekers, leaving recruiting and onboarding up to your gut feelings isn’t a defensible strategy anymore—and it also means you’re putting the long-term growth of your business at risk.

The risks of no process

Within the auto dealership segment, there’s a clear need for proven and repeatable processes that consistently drive positive results with new hires. According to our research, 75% percent of auto dealers have trouble with hiring. What does that look like?

  • High turnover. The average churn rate for sales staff at dealerships is more than 65%. This has significant financial and operational repercussions on a dealership’s performance.
  • Loss of revenue. Bad hires result in dealership owners spending between three and 10 times the annual salary of the employee (depending on the level) to replace that person.
  • Wasted time. The time invested in training and building the knowledge and skills for bad hires goes down the drain.
  • Operational disruption. A poor hire at the management level can set a dealership back six months in terms of performance.
  • Damaged reputation with customers and staff. Bad hires and turnover negatively influence the perceptions of internal staff, as well as the customers who come back to new faces every time they return.

4 steps to get ahead

The downsides of not having a clear hiring process are numerous and costly. They are avoidable, however. Here are four keys to creating and rolling out a successful hiring process:

  1. Define. A step that’s often not given adequate attention is clearly defining the role you’re looking to fill. Without specific expectations for candidate experience and detailed job responsibilities, you’ll likely end up attracting job seekers who don’t fit your vision for the role.

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