According to the latest NADA Dealership Workforce Study, the average dealership is experiencing a 72% turnover rate. And if you’re having trouble with turnover, that means you’re having issues with the way you hire.
Without some form of process for your hiring, you increase your chances of making poor decisions that can turn your dealership business upside down if you’re not careful with whom you hire.
To help avoid turnover, here are five mistakes dealerships make while hiring, as well as some tips on how to resolve them.
#1 Wasting Time & Money
Not every Most dealerships rely on paper applications, on-location interviews only and don’t conduct background checks or candidate screening. When a hiring manager has a lack of resources for conducting a proper hiring process, he or she has a tendency to make rushed or uninformed decisions, resulting with bad hires and employee turnover (which is pricey, like $12,000 pricey, on average).
Solution: Hiring shouldn’t waste anyone’s time or money. Learn how you can save time and money by having a modernized hiring process here.
#2 Lacking a Consistent Process
Hiring is a challenge across different locations or on different schedules. When everyone’s not on the same page, it can cause frustration and bad decisions between all parties involved. And naturally, this all adds up and leads to wrong hires and yes—more turnover at your dealership.
Solution: Regardless of how many dealership rooftops you run, there is a way to work in unison as all of your hiring managers. Here’s an easy way to utilize a centralized hiring process here.
#3 Lacking Strong Candidates
If your application process isn’t user friendly, smart candidates won’t even bother completing the form. If you’re not posting your job descriptions in the right places and not writing job descriptions that best represent your open jobs and dealership brad, how can you expect to find legitimate candidates?
Studies have shown us that job seekers prefer a shorter application process. This is especially true for the most talented ones. If they’re not already being recruited, the last thing they want to do is fill-out a long and tedious application.
Solution: With so many different employees to find and connect within your location, it can be somewhat overwhelming finding the ideal candidate for your open positions. Therefore, it’s crucial to post a job description that attracts an applicant’s eye. This is especially true for the millennials you’ll be hiring now and in the future. Click here to learn how to find the perfect hire for your dealership.
#4 Making Poor Hiring Decisions
According to a recent BBC article titled, “Science of Hiring Smart,” the author stresses the importance of a strong process to evaluating job candidates, saying that: “Managers responsible for bringing in new personnel can’t rely on a recruit’s resume and past history. Instead, it comes down to an often–difficult–to–gauge combination of motivation, skill set and personality.”
The author continues, saying: “For many companies nowadays, hiring is seen more as a science than an art, relying heavily on personality tests and day–in–the–life tryouts. But any manager who’s recruited regularly knows that, even with those tricks, hiring remains perhaps the business world’s biggest gamble. Successful hiring relies on both science and intangible qualities.”
Dealerships that lack a structured, scientific hiring process risk making poor hiring decisions, such as making a rushed hiring decision because of pressure, foregoing background and skills verification or hiring a candidate because of a “gut feeling” just to name a few.
Solution: Having structure for your hiring process is essential to making good hiring decisions and lowering turnover. Here’s an easy way to help you avoid poor hiring decisions and make sure you’re selecting the right people for your dealership.
#5 Inadequate Training for New Employees
There may be numerous reasons why your employees are leaving your dealership, but if they’re continuously disengaged with the job during the few weeks of employment, then you’re at fault. According to a recent article from Automotive Management Online, “The first 90 days is critical to reducing sales staff turnover” and “that the average franchise dealership loses nearly a third of its sales staff every year.”
The first 90 days is supposed to be the onboarding period at your dealership for your new employees. It’s on you to make sure you’re making your best effort to educate, build the right skill sets and develop your new hires. Otherwise, you can count on—that’s right—even more turnover.
Solution: Make sure you’re utilizing a hiring process that helps you find and select those most qualified to work at your dealership for the long run. Discover how to boost revenue and lower dealership turnover by clicking here.
When It’s All Said and Done…
Don’t write-off turnover as an unsolvable problem. It’s not true. The key to fixing this issue is by having structured hiring process that gives you, your hiring managers and dealership the framework to bring aboard people who’ll stick around and build your business.
Give your dealership a competitive advantage by utilizing a modern hiring process before your competitors do. Download the complimentary eBook to discover the benefits of such a process.