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Kevin Baumgart

Does Your Dealership Value its Interview Process?

Businessmen talking

By the time a candidate reaches the interview stage, it’s clear they have grabbed your attention as a potential hire for your dealership. The interview process is an irreplaceable component of your dealership’s overall hiring strategy. It’s also the point at which both the employer and job seeker determine if it’s worth their time to move forward with the process.

What’s at Stake for Employers?

Taking the time to speak with a candidate in person is critical to determine if someone is a good fit for the role. It’s also an integral part in persuading top talent to work for your dealership.

Research from LinkedIn found that 87 percent of job seekers said a great interview experience would make them reconsider a job offer even if they have initial doubts. In a competitive job market, this can make the difference between hiring an all-star and a dud.

Conversely, 83 percent of candidates say a negative encounter during an interview will erode their interest in a position. Getting the interview process down to a science begins far in advance of the in-person visit.

Employer Due Diligence

You will want to use the early stages of the hiring process to get as much information about the applicant as possible to ensure you’re making the right decision by inviting them in for an interview. Hiring technology has come a long way in enabling auto dealers to evaluate job seekers before they ever step foot in the dealership.

Employers should take advantage of tools that test hard skills, soft skills, culture fit and aptitude. Based on the results of these evaluations, you’re able to better gauge whether they meet—or even exceed—the requirements established in your job description. This adds insight that employers can use in conjunction with resumes and applications to make informed judgments about applicants and if they should bring them in for an interview. Once you’ve completed these critical steps, you need to make sure you are prepared to meet the candidate in-person.

How to Prepare for the Interview

No detail is too small as you prepare for the interview. Consider what type of impression you’ll leave after you’ve invited a candidate to talk about a specific position and you forget their name, the job they applied for or refer to past work experiences belonging to another applicant. This is the candidate’s first impression of what it would be like to work at your dealership, it’s important to get it right.

You should also have your interview questions prepared in advance and in front of you when you sit down for the interview. Be sure to have questions that will help you effectively identify whether the candidate can perform all necessary tasks defined in the job description. Addressing your priorities upfront and asking questions about measurable criteria will help you determine their ability to do well in the role.

At the end of an interview is a great time to allow candidates to ask questions and helps set expectations for the candidate and the interviewer. If you are prepared for this exchange in advance, it is easier to sell top talent not just on the role, but also on your dealership as a place to work. As much as the employer is judging the candidate, the potential new hire is also forming opinions about working for the dealership, and a great impression will win over all-star candidates.

An Extensive Process

The interview is the singular component in hiring that carries the most weight for both the employer and candidate. It’s crucial that you have a rock-solid process in place—built on strong intel about each applicant—that will make the encounter productive and illuminating for all parties involved.

Special thanks to NCM Associates’ partner, Hireology, for sharing their insights on the interview process. Learn more about Hireology. And join NCM’s experts for more actionable guidance for hiring the best people for your team in our Finding Top Talent and Success-Driven Pay Plan classes.

 

Permanent link to this article: http://blog.ncm20.com/2016/06/does-your-dealership-value-its-interview-process/

NCM Associates

#AskNCM: Will more wholesale increase net profit in Parts?

Will addressing wholesale issues increase net profit in Parts? Yes, says NCM expert Steve Hall, but there’s an important step you must do first.What more insights from Steve Hall and other NCM experts? Join them for our intensive Mastery level classes in Service Management, Used Vehicle Management and General Sale Management. Have another question for #AskNCM – comment below!

Permanent link to this article: http://blog.ncm20.com/2016/06/askncm-will-more-wholesale-increase-net-profit-in-parts/

Lindsey Quinn

Behind the Scenes: NCMi

Mug

If you’ve ever taken a course with the NCM Institute, you’ve experienced the hard work and expertise of our NCMi staff. Get to know the people responsible for making sure your experience in Kansas City—or at one of NCM’s Roadshows—is the best possible one! 

Group

Brandiss Drummer, Operations ManagerBrandiss

A five-year veteran of NCM Associates, Brandiss heads the NCMi team. Under her leadership, each individual works together to create a cohesive, flawlessly executed experience for the student. Brandiss sums it up best, “As we all know, the experience is about more than the content of the education you received; it’s about every aspect of the process from A to Z.”  Her goal is that every aspect of your NCMi experience consistently exceeds your expectations.

NCM: What’s the best part of your job?

Brandiss: The best part of my job is that it’s never done! There is no end date to this project—something can always be improved and this challenges me to continuously push us forward.  I never worry about complacency creep; I am always motivated to continuously improve when I hear the success stories from the students.  There are some whose lives we have literally changed (and whose family’s lives we have changed), by helping them to grow successfully in their careers, both financially and personally.

I was working here late one night, and my sister remarked to me “Go home! Remember, you aren’t saving lives.” No, we may not be, but we are changing them.

NCM: What’s one thing you’d like NCM clients to know about the Institute?

Brandiss: I can honestly say that every single team member is invested in the students. This is not a job for any of us; we spend countless hours in our personal time thinking of ways to help our students. It is not unusual to find the instructors still onsite at 7 pm helping a student with their homework. Or to find a group text between the admin staff on the weekend, working to make sure even a Saturday add-on doesn’t know the difference when they walk through the doors on Monday. Our training classes are small enough that if you let us, we get to know you as a person first, so that we know how to best help you as a student.

NCM: Anything else?

Brandiss: Yes: Bribes don’t work on us! Your test grade is still your test grade!

Cassie Allen, Learning & Development Coordinator Cassie

With a keen focus on students’ training needs, Cassie has spent four years working to match your goals with our classes. If you have ever requested customized training for your dealership employees, you’ve likely worked with Cassie to identify what topics will be taught in order to garner the most success.

NCM: What’s the best part of your job?

Cassie: I enjoy working with our clients and building relationships.

NCM: What’s one thing you’d like NCM clients to know about the Institute?

Cassie: If you don’t see a course on our schedule, ask us! We are always listening to our clients and their training needs.  We might not have it now, but we are always updating and adding new courses to our schedule!

Racheal Ellis, Institute CoordinatorRacheal

During her two years with NCM, Racheal has committed to creating a great experience for NCMi students. Many of you have probably spoken with her, as she helps with class registrations and communication. She also greets students when they arrive at our classrooms in Kansas City.

NCM: What’s the best part of your job?

Racheal: I like connecting with the students and getting to hear about their success stories.

NCM: What’s one thing you’d like NCM clients to know about the Institute?

Racheal: We’re here for you!

Jeff Hardin, Client Engagement SpecialistJeff

Jeff has only been with NCM for two months, but he’s already an integral part of the team. He helps students register for the appropriate classes, based on what they’ve already taken with us and how they want to develop their careers. And he likes to do it all with a smile on his face.

NCM: What’s the best part of your job?

Jeff: The best part of my job is working with my team and with our clients to determine their true learning and development needs and help them accomplish their goals in efforts to improve their success.

NCM: What’s one thing you’d like NCM clients to know about the Institute?

Jeff: We have a vested interest in their success and truly care about them both as clients and individuals. We value the relationships we build with our clients.

Carolyn Rogers, Assistant CoordinatorCarolyn

Over the last year, Carolyn has been working hard on prepping all the classes for NCMi students. She’s also responsible for the tasty meals NCMi guests enjoy, so now you know who to thank when Kansas City’s famous barbeque is on the menu!

NCM: What’s the best part of your job?

Carolyn: The people I work with and interacting with the students.

NCM: What’s one thing you’d like NCM clients to know about the Institute?

Carolyn: That what we do is more than just a job.

NCM: Anything else?

Carolyn: Go NCMi!

Permanent link to this article: http://blog.ncm20.com/2016/06/behind-the-scenes-ncmi/

Rick Wegley

Endangered Maintenance

Cars in the automotive service

You’ve probably heard about the “disruption” of our business model and the need to become more focused on asset management—in the service department we’d call this time management.

In the changing economy, the importance of understanding work mix, effective labor rate and gross profit planning by opportunity to do business has increased. This is a chance to create the “modern service department.”

The Rise of Meager Maintenance

Manufacturers have reduced required factory maintenance services to an oil change and tire rotation. Added to that is a list of “inspection only” items to be performed at each interval through the first 100,000 miles of ownership.

In a sense, maintenance has become an endangered species.

I’m sure that essential services, such as oil changes and tire rotations, will continue for most manufacturers for many years to come. But, even today, there are vehicles on the road that do not require these services! Already we have vehicle equipped with fully electric motors and have directional tires with offset wheel configurations that eliminate the need—or even the ability—to perform a simple tire rotation. These same machines have powertrain components that require no fluids, contain sealed housings with contents that exceed field service capability, and, because of that same advanced technology, they will only fail on a very rare occasion.

We already see a change in work mix, in response. Based on the most recent statistics of NCM reporting dealers and our Retail Operations Consulting team is nearing five years old with an average of 60,000 miles. In metro markets, or those dealers with higher lease penetrations, the averages for both vehicle age and mileage are much lower.

Preparing for Fixed Ops’ future

I seriously doubt—and I’m confident you’ll agree—that any manufacturer will produce a vehicle requiring more maintenance than anything they are producing today. And I’m certain that our retention of new vehicle purchasers (especially used vehicle buyers) will never be higher than it is today unless we do something dramatic to keep these customers returning to our service drives for all of their maintenance needs.

The situation isn’t improving, so you had better figure it out how to deal with it! Here are my recommendations for dealing with disappearing maintenance jobs:

  1. Start with a work mix study. Look at the frequency of visits by make and model year, and what types of services are the most common, by the frequency of opportunity, coming through your service drive. Identify which maintenance services are not being presented or sold, and determine why.
  2. Second, review your current maintenance menu strategy. Does it align with your manufacturer required maintenance intervals? Even if your manufacturer uses some oil service or maintenance reminder algorithm, the maintenance service intervals are still predictable. Keep your menu simple, easy for both the advisor and customer to understand, and build the menu packages in “common sense mode.” Use “good-better-best” pricing strategies for factory and dealer recommended services, and make sure you involve your advisors and technicians in the menu building process. If they don’t buy in 100%, I assure you they will not present 100%.
  3. Third, the menu should be shown at the time of vehicle sale with a personal introduction to one of your service staff. The intervals and included services should be reviewed and the first service appointment scheduled before the customer leaves the store. This process should also be expanded to include 100% menu presentations for all existing customers who come to your dealership for service, either during the interactive walk-around if the client is in for routine scheduled maintenance or during the active delivery, to set customer expectation for the next service visit.
  4. Lastly, always set the next service appointment during the active delivery process. Do this by gauging the next service due interval based on historical time and mileage between services using the vehicle service history. Create a point of reference for follow-up with your customer—just like your dentist sets your next appointment before you leave her office after every check-up. When implementing this best practice at your store, you must also develop a process for follow-up with each of these customers several days before their scheduled appointment to verify they are still on track for the service visit. This gives us the opportunity to adjust the appointment date or time, if necessary, and will greatly reduce the number of “no show” appointments for our advisors.

Maintenance has become an endangered species, but it won’t become extinct anytime soon. Take a proactive approach in identifying missed opportunities, and look very carefully at your strategy moving forward to maximize what business exists. Plan your work, and then work your plan.

Need more help breaking down your work mix and identifying opportunities for improvement? Join the Rick and other NCM experts at the NCM Institute for such classes as Principles of Service Management I, II and Mastery.

Permanent link to this article: http://blog.ncm20.com/2016/06/endangered-maintenance/

NCM Associates

#AskNCM: Should We Charge Shop Supplies on Internal Work?

“We use shop supplies on internal work, don’t we?” asks Rick Wegley, NCM Institute Instructor. One of our Fixed Ops experts, Rick takes a deeper look at this common question and goes over the laws that  impact the answer for your dealership.
Ready for more insights from Rick? Join him and other experts for NCM’s Boston Roadshow this July! Find out more.

Permanent link to this article: http://blog.ncm20.com/2016/06/askncm-should-we-charge-shop-supplies-on-internal-work/

Lycia Jedlicki

From NCM’s 20 Groups: 5 Best Practices to Survive the Viral Recall Epidemic

recall

It doesn’t matter what franchise you have; recalls are having a major impact on our day-to-day operations.  In every 20 Group meeting I’ve had this year, recalls have been a hot topic, and each dealer is coping with them differently.

Common recall worries

Although responses vary, without a doubt our 20 Group members share similar concerns about recalls. I often field such questions as:

  • How do we go about our day-to-day operations with the least amount of turbulence?
  • How can I ensure that we are complying with the factory and government standards?
  • Do we have the correct technicians performing the recall?
  • How do we make sure that recalls are not negatively impacting our “Customer Pay” work in our service departments?
  • Where should we store and dispose the impacted parts?
  • Where and how are we supposed to store these vehicles?
  • Do we put recall customers in a rental/loaner vehicle?

Treating the Recall Virus

Over the last few months, 20 Group members and I have been working together to develop best practice to address this growing scourge. Here’s what we’ve adopted:

  1. Check for open recalls when appraising and delivering a sold vehicle using the safercar.gov website; require the customer to sign, too. Many of our dealers also check their inventories multiple times a week for open recalls
  2. Schedule or perform recalls at non-peak times such as afternoons, if possible.
  3. Check with other dealers/companies/rental agencies for increased business.
  4. Perform multi-point inspections looking for additional services to recommend now or in the near future.
  5. Discover your opportunity. One of the big questions is can I sell a vehicle with an open recall?  This opinion varies among many dealers, legal councils and manufactures, whichever policy your dealership adopts, please make sure everyone is aware how to handle these vehicles.

Recovering from recalls

Recalls aren’t likely to go away anytime soon, so the best thing you can do is develop a better attitude towards them.

My 20 Groups like to focus on the positive side: all the incremental business recalls bring to our Service Departments. Seize the opportunity—it’s up us to retain these new clients and turn them into “Customers for Life”.

What practices has your dealership started to deal with the viral spread of recalls? Tell us below.

Permanent link to this article: http://blog.ncm20.com/2016/06/from-ncms-20-groups-5-best-practices-to-survive-the-viral-recall-epidemic/

NCM Associates

#AskNCM: What’s the silver bullet to improve UV?

Is there a secret to increased used vehicle profits? “Yes!” says NCM expert Robin. Find out what Robin thinks are the most important things you can do to improve your UV department. Here’s a hint: Get your “walking” shoes on!

Have you already started Robin’s must-do recommendations for pre-owned? Tell us about it below. Have another question for #AskNCM – comment below! 

Permanent link to this article: http://blog.ncm20.com/2016/06/askncm-whats-the-silver-bullet-to-improve-uv/

Lindsey Quinn

Christy Roman: Changing the Face of Automotive through Leadership

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Dealerships around the country struggle to find innovative ways to recruit and retain top female talent; meanwhile, women themselves face challenges balancing work and home and often have to establish their place in the traditional dealership. It’s a situation that many believe needs to change.

We recently interviewed Christy Roman, founder of Women in Automotive (WIA), about the difficulties women face and asked her how the industry can address them. Read on to discover her solutions.

NCM: What do you think are the biggest obstacles women face in automotive-focused careers?

Christy Roman: It’s a very family unfriendly environment—and it’s male-dominated. There are many antiquated requirements that could be changed that would make hiring and retaining women more feasible. The industry needs to make some of these adjustments, or their store demographics will not match those of their customers.

It’s not just women, either, it’s young people. The days of working 12 hours a day, six days a week with a draw and little to no training are coming to a close.

NCM: This seems like a question of leadership; it reminds me of a great meme going around LinkedIn right now. What do you think of this? Do you agree?

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CR: I love that—I think developing people is the mark of a good leader. Too many managers don’t understand that is their primary role—not just to provide a service or product. Developing people is the name of the game. That’s part of why we created this organization—to assist dealers in understanding that changes need to occur to be able to attract and grow people in the industry.

NCM Associates: Tell me more about what inspired you to create the WIA?

CR: I went to a marketing to women conference, and it got me to thinking about the industry and how cool it would be to have an event that we could tailor to women in the industry—from how to recruit and retain, train and develop women as employees to how to market and capitalize on their strength as consumers. It just seemed like it might be a good idea. We had no idea until we had the event how beneficial it would be. It was magical!

NCM: What role does WIA fill in women’s lives?

CR: It’s an opportunity to network, learn and be inspired by a great industry—it helps give women direction and shows them how much opportunity exists in automotive. At the same time, it helps dealers and human resource directors learn and share strategies that benefit employee satisfaction and retention. Marketers can come and be educated on how focusing on women is a good thing and can be very lucrative.

NCM: Do you have a particular mentor who helped guide you through your career?

CR: Jody Devere of Ask Patty has been one as it pertains to this industry and growing my business. Molly Curry of CDK also had a huge impact on me years ago, but there have been others along the way.

It’s always helpful to have someone who’s been there and done that to give you advice. It keeps me calm, so I don’t freak out when things are difficult. And, as an entrepreneur, things are often very difficult.

NCM: How important do you think mentorship is for women in automotive?

CR: I think it’s incredibly important. It’s not an easy industry, as much opportunity as there is and as great an industry as it is. To have people who can commiserate with you and provide a sounding board is an invaluable tool to help you weather some of the storms that invariably come with careers in automotive.

NCM: Does WIA help fill that role? Do you want it to?

CR: We have a mentoring program that we have been piloting and plan to more formally roll out at this year’s event.  If we can garner enough interest, we will certainly fill that role.

NCM: Who should those mentors be? Should women look for other women leaders in the industry?

CR: I think mentors come in all different shapes and sizes—so to find one in the industry or any other line of work, I don’t think it’s a necessity to be part of this industry. Beneficial, but not necessary.

NCM: Do you think it is important—especially in automotive—for women to have a male mentor in addition to female mentors? Why or why not?

CR: I stand by what I said above, mentors come in all shapes and sizes, and absolutely men can mentor. I think it’s more about how you relate to the mentor/mentee relationship and how it values both parties than whether it’s a woman or a man.

NCM: How can young women in the field—or women considering a move into automotive—find mentors? What should they do?

CR: Come to Women in Automotive in June and sign-up!

NCM: Do you mentor anyone in the field? What’s one of the most important lessons you’ve given them?

CR: I like to mentor those who ask me to do so—I have helped a number of people who have embarked on the oftentimes scary entrepreneurial track to help them be strategic and avoid costly mistakes. I’d like to teach young people about entrepreneurship: It took me until I was 30 to figure out I was an entrepreneur!

Later this month, Christy Roman joins other women automotive leaders for the second annual WIA Conference in Orlando, Fla. Be sure to stop by the NCM Associates booth to apply for our $10,5000 Women in Automotive scholarship. The scholarship awardee will attend an upcoming session of our GMEP—General Management Executive Program. Find out more about this great program. 

Permanent link to this article: http://blog.ncm20.com/2016/06/christy-roman-changing-the-face-of-automotive-through-leadership/

NCM Associates

Video: How to Repair Your Collision Center

Collision is a tough business—and it’s extremely difficult to make a profit.

Don’t despair, though: NCM expert, Steve Hall, has the solutions for your collision problem. Check it out:

Ready to work on your collision business? Discover Steve’s answers to you collision center problems! 

Permanent link to this article: http://blog.ncm20.com/2016/06/video-how-to-repair-your-collision-center/

Adam Robinson

Recruitment Best Practices from DrivingSales’ Most Valuable Insight Competition

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Recently, Hireology was fortunate to speak and present at the DrivingSales Presidents Club 2016 event as a finalist for the Most Valuable Insight Awards. As a way to share our “most valuable insight,” Hireology presented the findings from an in-house study on how effective employment branding drives quality hires and improved store performance at dealerships. After conducting our research, we found something to be true across all retail automotive dealerships: employment brand matters.

Strong employment branding, when combined with a data-driven evaluation process, is one of the best investments a dealership can make. When dealerships build a strong employment brand and utilize procedures to manage the recruiting and hiring effort, the results are staggering.

How we did this study

(Short on time to read? Jump to the results and learn how to use them.)

While conducting our research, Hireology studied two control groups (for easy reference, I’ll refer to these as “Group A” and “Group B”). Group A consisted of a six-rooftop dealer group from the Mid-Atlantic region, and Group B was composed of a three-rooftop group located in the Midwest. Management teams were surveyed electronically, which covered their approach to employment branding and recruitment process as well as their results from such efforts.

Before diving into the results, let’s take a look at some of the industry-wide data related to human capital:

Therefore, we anticipated a correlation between the way dealerships present themselves as employers to today’s younger workforce online and the harmful effects of their staff turnover.

What we found: A branded career site yields better candidates

Our survey exposed numerous challenges facing the automotive industry when it comes to finding and hiring employees. Hireology discovered that there was a clear difference between utilizing job boards and a company career site when it comes to recruiting talent. Here are our results.

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Applicant conversion by source

We analyzed the rate at which inbound page traffic to Group A’s career page converted into candidate applications and found that conversion rates from organic traffic delivered as a result of a branded career site substantially over-performed the conversion rates generated from paid job board traffic:

  • 0.2% conversion rate from job boards
  • 11.5% conversion rate from organic traffic

Candidates by source

In this analysis, “candidate” is defined as someone who has applied for an open position via the career site and who has been deemed qualified at the first review so that a next step, such as an interview, is warranted. What Hireology found was that nearly 94% of candidates who applied for an open job were attributable to a paid job board, versus organic traffic due to a career site.

  • 6.1% career site
  • 93.8% job boards

Hires by source

Our analysis of Group A data showed that 77% of all hires resulted from organic traffic generated by the dealer’s career site versus job boards. This insight, when examined against conversion rate and candidate source data, shows that even though organic traffic attributable to a dealer career site generated just 6% of all candidate traffic, the career site cohort produced a whopping 77% of all hires. In other words, 6% of traffic generated 77% of hires.

  • 22.7% job boards
  • 77.3% career site

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Quality of hires by source

Our analysis defined “quality hire” as “a hire who was able to meet or exceed 75% of their states production or performance target.” In sales roles, this might be a monthly vehicle unit sales quota. When controlling for the candidate source, 75% of all “quality hires” originated from the candidate pool generated via organic career site traffic. Just 25% of Group A’s quality hires came from a paid job board.

  • 25% job boards
  • 75% career site

Turnover percentage by source

Most importantly, the results show that turnover rates diverge substantially based on the cohort. The new variable ops hires that originated from a candidate attributable to a branded career site turned over at a rate two-thirds less than the industry average.

  • 25% from Group A
  • 72% industry average

Group B (Three-rooftop control group—Midwest)

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For this second control group, we similarly analyzed the rate at which inbound page traffic to Group B’s career page converted into candidate applications. Hireology found that conversion rates from organic traffic delivered as a result of a branded career site substantially over-performed the conversion rates generated from paid job board traffic.

Applicant conversion by source

We examined the rate at which inbound page traffic to this dealership group’s career page converted into candidate applications and found that conversion rates from organic traffic delivered as a result of a branded career site significantly over-performed the conversion rates that came from paid job board traffic:

  • 1% came from job boards
  • 13% came from the dealership’s career site

Candidates by source

In this analysis of Group B data, we defined “candidate” as someone who has applied for an open position via the career site and is a qualified applicant warranting a next step, such as an interview. Hireology found that nearly 82% of candidates who applied for an open position were attributable to a paid job board, compared with organic traffic due to a career site.

  • 82% job boards
  • 18% career site

Hires by source

Our analysis of the data showed that 71% of all hires resulted from organic traffic generated by the dealer’s career site versus job boards. When evaluated along with conversion rate and candidate source data, we concluded that even though organic traffic attributable to a dealer career site generated just 18% of all candidate traffic, this cohort produced a whopping 71% of all hires made. In other words, 18% of traffic generated 71% of hires.

  • 29% job boards
  • 71% career site

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As previously mentioned, Hireology defined “quality hire” as “a hire who was able to meet or exceed 75% of their states production or performance target.” When controlling for the candidate source, 70% of all “quality hires” came from the candidate pool generated via organic career site traffic; only 30% of quality hires resulted from a paid job board.

  • 30% job boards
  • 70% career site

Turnover percentage by source

What’s essential here is that the results show that turnover rates deviate significantly based on the cohort. The new variable ops hires that came from a candidate attributable to a branded career site turned over at a rate that’s nearly 50 percent less than the industry average.

  • 21% from Group B
  • 70% industry average

A branded career site for improves hiring and turnover

So, what’s the value in having a branded career site for your dealership? Here are four things to consider:

  1. Organic applicant traffic and process is over 5x more cost-effective
    1. Organic cost-per-hire: $245
    2. Third-party sources cost-per-hire: $1,700
  2. Organic applicant traffic and process yields the majority of hires—20% of the traffic yields 80% of the hires
  3. Hires sourced this way are 2.5x more likely to be an A or B player
  4. Hires sources this way have higher retention rates—
    1. 27% versus 67% industry average

Key takeaways for dealers

Retail automotive dealers who want to build better teams and reduce turnover should invest in employment branding and adopt a data-driven hiring process. The financial benefits of such an approach far surpass nearly all potential operational improvements through which dealers can generate a return on investment.

Assuming your dealership has 55 employees (the average) and a turnover of 67% per year, turnover is costing you nearly $600,000 per year, every year.

                        37 turns (67% x 55) @ $16,000 cost-per-turnover ea.  = $592,000

Based on our study, dealerships can anticipate dramatic changes in turnover after adopting a structured hiring process and creating a branded career site. As soon as you produce a turnover rate similar to the cases studies discussed above (i.e., 25%), your dealership turnover calculation would improve:

                        14 turns (25% x 55) @ $16,000 cost-per-turnover ea. = $224,000

That’s a profit add-back of $368,000 per store per year. Dealers are hard-pressed to figure out a more straightforward way to generate a higher return in this amount of time.

The bottom line is that dealers must take charge of the hiring challenge by taking control of the recruitment process. Strong employment branding, when combined with a data-driven evaluation process, is one of the best investments a dealership can make.

If you’re not already taking this approach, it might be time to reconsider the way your dealership hires employees because your employment brand most definitely matters.

Special thanks to NCM Associates’ partner, Hireology, for sharing the results of their study. Learn more about Hireology.

Permanent link to this article: http://blog.ncm20.com/2016/05/recruitment-best-practices-from-drivingsales-most-valuable-insight-competition/

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