By Fleming Ford, VP of People & Performance, ESI Trends
With today’s tight labor market, there is an urgent need in automotive retail to attract and retain better talent. Dealerships can’t hit performance goals or provide exceptional customer experiences without having the right people with the skills and attitude needed to optimize productivity. Finding better candidates and retaining top performers needs to be the priority of ALL automotive retail managers or we will soon face a crisis. The greatest benefit from implementing a focused human capital strategy is the financial impact; By moving the needle on employee engagement and retention, dealers can experience a significant increase in gross profits. Our studies with NADA show that improving retention by 10% can impact gross profit by almost $500,00 (even higher impact for luxury brands).
We all want better candidates and talent that sticks around and gives 110%, but how do we get it? Let’s explore a few best practices from dealerships that are the employer of choice in their markets.
Attracting Talent
Recruiting talent to your store is not about the best job posting, it is about building a culture that is focused on being the best place to work. Top performers have a choice, and they are choosing the employer who can help them not only reach their highest potential but also offers a place where they are stretched and energized. Dealerships that have an employee-centric culture attract top talent because they have a strong employment brand. Your culture is your brand for customers and candidates. Is it enticing enough to steal passive candidates or win a top candidate?
Review your value proposition, your ‘Why Work Here?’ If it has no wow factor, it is time for strategic change and a shift to a culture focused on employee development, empowerment, values, vision, transparency, and trust. Top performers are savvy and feel the vibe (good or bad) when they walk through the door. You must walk the walk, not just talk the talk. Today’s candidates do their homework; they check out your social media, your dealership website, what current and past employees are saying on Glassdoor, and how people talk about your dealership in the market. Transform your culture to be the employer of choice in your market and watch the candidates line up.
Engaging Talent
Employees that are engaged work harder and are more committed, which boosts bottom-line results. ESI Trends surveyed 120,000 dealership employees to identify the top factors driving engagement and retention. The most important factor from this year’s study was the importance of collaboration. Employees need to have a voice and feel their ideas matter. Simply asking their opinion on how to improve things like processes or customer interactions is a big motivator. Inviting them to be on a task force or having them share expertise with the rest of the team are good ways of boosting engagement.
Progressive GMs hold casual breakfast meetings or town halls to connect with associates. The ESI study shows the GM’s relationships with associates is a driving factor in engagement. It’s not enough to just hang out with staff; you must invest the time to coach them and show them you care. A GM that regularly connects with each associate will see a big increase in engagement. Try asking questions like, what could we do to improve the customer experience or what would make you more excited to come to work each day?
Finally, employees need to be empowered. They want to know you trust them to do the right thing and respect their decision making. It is no surprise that top performers no longer tolerate old-school “command and control” leadership. If you don’t believe your team is capable, they won’t be. When you do believe in them, they will surprise you with the results they can produce. As leaders, we must clearly communicate where we are going, how we will get there, and the behaviors we expect, and then let them do their job. Employees who truly understand and buy-in to the vision and objectives will respond with enthusiasm and hard work. Those that are ordered to do things will only do minimal work and will quickly look for new jobs.
Retaining Talent
We’ve all heard the saying that “people don’t quit their jobs; they quit their managers.” Our exit surveys verify this statement. Many employees state they would come back to the dealer if they didn’t have to work for the same manager. Most leaders are more comfortable managing the work versus managing the people. Look, we get it, the people side is growing more complex than ever, but shaping the employee experience is the secret sauce to attracting and retaining the team you need to achieve your goals. A leader must adapt to the changing expectations and values of each employee—we must no longer be a sales manager or a service manager, we need to be a people manager. Leaders that communicate best and build lasting relationships will win the war for talent.
Like most industries, we promote our top performer into the manager role with little or no training. We tend to promote those that are best at the job not necessarily those with the most capacity to lead. Luckily, leadership is a skill and just like any other skilled profession, it can be improved with training and practice. If you want to witness true change in the talent you attract, retain, and engage, equip your managers with the people skills needed to elevate performance and productivity.
Small changes in your people strategy can have a big ROI for your dealership.
Dive into initiatives for driving retention and productivity by joining Fleming Ford at Digital Dealer 27 Conference & Expo (August 19-21, 2019, Las Vegas) for her session, “Employees Are the Secret Sauce: Is There a Better Way to Attract, Engage, & Retain Them?”
About the Author
Fleming Ford is the VP of People & Performance at ESI Trends, a firm committed to reducing unnecessary employee turnover by engaging the workforce, strengthening cultures, bridging generational gaps and making leaders more effective in their roles. With 15 years in automotive retail as an employee retention specialist, Fleming helps dealers refresh outdated processes with people-centric solutions to enhance the employee experience and drive better business outcomes.