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Category Archive: Training

Adam Robinson

Are Your People Driving Profit? Understanding Critical HR Benchmarks

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While turnover rates continue to be higher than average in the auto industry, a dealership’s ability to understand the components of its hiring process will unlock critical insights that help to increase profit and identify roadblocks that deter quality hires.

For example, the longer an open position goes unfulfilled, particularly in a sales role, the more productivity is disrupted. The average dealership takes seven days to review a new job application. By the time a dealership gets around to contacting a potential candidate, they are usually already in talks with another employer. Our research has shown that the fastest company response tends to win the candidate—70 percent of new hire applications were reviewed in the first 12 hours after submission, and 82 percent of all hires were considered within 24 hours. If the average dealership is waiting a week to review candidates, how many of them are still quality leads?

Not only does an efficient hiring process help fill vacant roles by 37 percent (or 16 days) faster than the national average, it can also help a dealership secure top talent in the industry before its competition.

As you analyze your dealership’s current approach, consider the following components of an efficient and effective process:

Define the role

Rather than remain focused on what your dealership needs, find out where ideal candidates are already working and the work culture and environment to which they are accustomed. For example, are there opportunities to grow and learn in your open role, or do you need someone seasoned who requires less training? Once you determine the position, you can better identify if your opportunity is robust enough to attract the right fit.

Source candidates

A dedicated company career site (or landing page on your dealership website) is the best way to attract candidates by providing them with enticing, relevant information on your business, available positions, and what makes your organization a great place to work. These goals are best accomplished by applying the same mentality of consumer advertising to your employment advertising. What’s more, dealerships only review about 72 percent of total applicants, but all applications should be examined, prioritized, and responded to.

Select a quality applicant

While this is often the piece of the process that tends to break down the most in the auto industry, it is important to carefully select the right candidate. Be sure to give multiple people in your company an opportunity to weigh in on the decision, which also provides the candidate with multiple perspectives of what the job will entail. A candidate’s competencies should be identified, and the team should determine which ones can be transferred over, and what will require additional training.

Verify backgrounds

While typically an overlooked step in the process, verification helps mitigate your risk. Be sure to confirm a candidate can do what they say they are capable of, and whether or not they have done so previously, by speaking with references. Background checks should also be performed to see if the candidate makes good choices and is a good member of society. As the person who will be interacting with your customers, be sure their values align with yours.

Onboard efficiently

Typically, the first day of a new job is filled with paperwork and logistics. Utilize technology to take care of as much paperwork as possible ahead of time, showing your new employee you have already made an investment in them. This approach will, in turn, raise their enthusiasm and investment in your dealership and their new position.

Applications should be reviewed immediately, candidates should be contacted in a timely fashion, and the overall hiring time should remain relatively short.

Once your process has been developed, it is important to measure its success against industry benchmarks to ensure your team and hiring managers see it through. An efficient process in a vacuum doesn’t do your dealership any good, so keeping your team accountable is crucial.

If a hiring manager is taking too long to reach out to candidates to facilitate the recruitment process, that delay has the potential to impact not only a candidate’s interest in the position but their opinion of the company overall. This delay can also result in a loss of potential business from the candidates as customers down the road, or loss of new consumer leads when they share their experience with their family and friends.

Your managers should include the hiring process in their regular discussions on how to improve sales and strategies, keeping their finger on the pulse of who may be at risk for leaving, how to best prepare for those situations, and how to continue actually shaping the team.

A successful hiring process will not only benefit your company but also your customer. While dealerships have little control over the make and models of the cars they sell, and many dealerships are offering the same products, the customer experience is one of the few factors you CAN influence, making the hiring process just as critical to the success of your company as the client experience. Maintaining an efficient recruitment process will ensure your employees continue driving your profit.

Thanks to NCM Associates’ partner, Hireology, for sharing their guidance on attracting and managing millennial employees. Learn more about Hireology and join NCM’s experts for more actionable advice on hiring the best people for your team in our Hiring Top Talent and Success-Driven Pay Plans classes.

Permanent link to this article: http://blog.ncm20.com/2017/06/are-your-people-driving-profit-understanding-critical-hr-benchmarks/

Joe Basil

NCM Case Study: Five Successful Dealerships Regain Lost Net Profit

Portrait of call center worker accompanied by her team. Smiling customer support operator at work.

I’m going to make it crystal clear. Your net profit is sitting right in front of you, and it walks right past you (and out the door) every day! Let’s get it back.

During my years in business, I’ve observed that 80% of the dynamics that impact a business or industry originate outside its four walls; however, 80% of the forces that impact the dealership’s profitability originate inside them. It’s my opinion that your increased profitability walks in and out of your dealership every day and right in front of your eyes.

Five case studies: regain lost profits with simple changes

Your opportunities for increased net profit are in every step of your customer transaction management process. The gap or disconnect is that some dealers and managers can’t see it, even though it’s right in front of them. Here are some specific examples from some of my NCM 20 Group and consulting clients who have discovered big profits from small changes.

1. The BDC conversation turnaround

A used vehicle manager observed his business development center (BDC) customer-contact phone calls. The business development representatives (BDRs) were making their 100 calls per day; however, the tone of the calls was flat and lacked sincerity. The calls could have been made by a computer; they were so impersonal.

Once he brought it to the attention of the business development manager (BDM) and they did some training, his appointment show ratio began to climb. Just imagine how many deals the dealership had already lost before this simple change!

2. Lead with the winner

During a pre-owned digital merchandising review, our NCM 20 Group noticed a photo of a clean 2013 Silverado crew cab pickup truck with 9,000 miles on it. It was a great vehicle, but at over $36,000, it was priced exceptionally high for the market.

Three or four photos later—buried in the vehicle description—the dealership showed that the Silverado was a handicap/wheelchair accessible vehicle! Not only that, but a little research revealed to us that a new one would cost between $67,000 – $69,000. The vehicle was priced under market for an accessible truck, but it couldn’t find buyers because of the poor photo choices and lack of relevant keywords in its description.

Take a look at your digital merchandising. How many of your vehicles are overlooked because of simple mistakes?

3. Walk around for more profits

During a training session with service managers, I asked how many of them do walkarounds on customer vehicles in the service lane? All nine raised their hands. Then, I asked how many do walkarounds on 100% of customer cars, 100% of the time? Only three out of nine said yes!

Insist that each and every vehicle get a walk-around. Every time your team skips one, you’ve missed flat rate hours and parts sales that are just waiting for you in the service lane.

4. The difficult customer hand-off

In a general sales manager meeting, we were discussing the customer handling process in the BDC and the sales desk’s involvement. One sales manager discovered that when the BDR got stuck with a customer, they just chalked it up as a difficult customer and moved on to the next one, missing out on opportunities to set the appointment.

The sales manager changed the system straightaway. Now, when a BDR gets a difficult customer, he or she turns them over to a sales manager. Their show rate and close rate increased immediately.

Think about your BDC and sales deck system: How many deals have you lost over the last six months because your BDC and sales desk weren’t well connected?

5. The sales hot spot

A used car manager began paying close attention to his vehicle details page (VDP) activity and the sale of the related cars. Every day, he shared the top five VDP activity vehicles with his salesforce, requiring each salesperson to select one of the top performing VDP vehicles. They were required to make sure it was clean, ready to demo, and parked in a “hot spot” on the used car lot.

The UV team quickly upped their closing ratio on these cars by 25%. It makes me wonder just how many used vehicle customers we “unsold” because we didn’t have the car ready for the customer to demo.

Awareness improves profits

I think these five mini case studies demonstrate how small changes in your dealership can quickly result in improved profits. Take a good long look at your customer transaction management process and discover your own plentiful opportunities to make the most of the customer traffic flow you already have!

Discover how Joe Basil and his NCM colleagues can help your dealership through 20 Groups and in-dealership consulting.

Permanent link to this article: http://blog.ncm20.com/2017/06/ncm-case-study-five-successful-dealerships-regain-lost-net-profit/

NCM Associates

#AskNCM: How many tickets should a service advisor have each day?

Service advisor Robert wrote to #AskNCM about daily workload, asking: “How many customers per day is too many for a service advisor?”

Depends on your business structure, explains NCM expert Steve Hall, and how you’re staffed. Variations across dealerships mean there is no cut-and-dried answer to the question. However, he explains, NCM does have a recommended customer interaction-to-service advisor ratio.

Get Steve’s recommendations:

Have another question for Steve or the other #AskNCM experts? Leave a comment below! For more service advisor training, check out our NCMi courses.

Permanent link to this article: http://blog.ncm20.com/2017/04/askncm-how-many-tickets-should-a-service-advisor-have-each-day/

Tony Albertson

The Resilience Checklist

Car salesman

Recently, I was invited to moderate a session at a DrivingSales Conference in Miami, Fla. The topic at hand was dealer resilience. The meeting asked dealers in the room, “How would you handle a 20 percent decline in volume or a 50 to 100 basis point rise in interest rates and what about a labor shortage?” Think it can’t happen?

Increasing interest rates

The last few years, we have seen the government prop up the nation with prolonged stimulus and loose monetary policy while impairing sustainable growth. In December 2015, the Federal Reserve raised rates by 25 basis points; this was the first increase since 2006. The Fed has recently increased it another 25 basis points, and the projection is for 2 to 3 more increases next year. How will this affect your profitability, your property values, rent factor, or your ability to acquire new stores?

Changing marketplace

What of other external threats to our business, such as negligence from the manufacturers, disruptive markets, or the state of consumer finance? Internally, dealers may suffer from a poor reputation in customer experience, labor inefficiencies, and a stagnant business model that can ruin net worth. A 2015 Customer Experience Research report by DrivingSales stated that only 26 out of 4,000 consumers prefer the current car buying process. As they explain—and I agree—the Apples and Amazons of the world have trained modern shoppers to seek out a different buying experience.

Experian has reported that auto loans reached an all-time high in Q1 of 2016. The debt totaled over $1 trillion, up 10 percent from Q1 2015, and they are watching delinquencies closely. According to the Federal Reserve Bank, the average length of a new car loan is 64.6 months.

A 2015 Cox survey had some good news for dealers despite the abundance of those disruptive market sites capitalizing on direct-to-consumer transactions: 81 percent still prefer to buy in-person versus online. The customer still doesn’t like the process, but they want to deal with a real person and be able to touch and feel the vehicle.

Rising labor costs

Operationally, the automotive industry’s biggest expense is labor. According to NADA’s Chief Economist, dealers often pay 15 percent more than US averages for labor and have been increasing wages at twice the rate of comparable sectors all while experiencing turnover rates up to 3 times the US average. On the topic of expenses, David Spisak, President of ReverseRisk and one of the speakers at the conference, stated that “many dealers fail to quantify their true costs when manufacturers redistribute margin on their financial statements.” So what happens when the OEM pulls the program?

The Resilience Checklist

Despite the brilliance of the speakers at the conference, none have “THE ANSWER” to all of the questions we face in today’s car business … I don’t believe anyone truly does have all the answers. However, I think this short resilience checklist is a useful tool for your dealership:

  1. Stress test your profit and loss (P&L) and balance sheet for a 30% SAAR drop and/or interest rate increase of 3-5%.
  2. Secure long-term financing while rates are low, if possible.
  3. Develop and track a “true” P&L independent of OEM incentives and financial manipulation. Wean yourself off dependency on manufacturer programs. Operationally, modernize your labor practices. Build and implement an attractive employment ‘brand’. Culture, compensation plans, internal policies, and positive impacts of the organization externally should be optimized to attract and retain a more diverse, more cost-effective talent pool that can deliver a superior customer experience.
  4. Re-engineer inefficient departments and processes. Streamline organizational structure to provide a seamless customer experience to remove hand-offs and overhead. Used cars and fixed operations are huge areas of opportunity to recover lost margin in new cars and execute a customer retention strategy.
  5. Future proof your business by exploring how to position your dealership to benefit from changes in how consumers purchase mobility.

So many questions in so many areas. The truly great news is that—almost to a man (or woman)—car dealers can adapt and overcome challenges. Well, some faster than others. Make sure you’re one of the fast ones!

Learn more about Tony Albertson and how he and his NCM colleagues can help your dealership through 20 Groups and in-dealership consulting.

Permanent link to this article: http://blog.ncm20.com/2017/04/the-resilience-checklist/

Kendall Rawls

Generational Tensions: 4 Barriers to Automotive Leadership

Stressed boss and her female colleagues posing in office

Ensuring the future success and sustainability of a dealership is not based solely on operational knowledge and efficiencies. In addition to creating robust processes, identifying and developing future leaders is critical to building sustainable dealership value. But first, you must overcome the leadership barriers that sabotage your goals.

Generational tensions

In the past, when someone took on the position of “dealer,” it was assumed employees would fall in line and follow the owner’s lead. Today, with up to five generations working together at the same dealership, this expectation doesn’t hold true. Instead, good people check out or leave after a transition in leadership if they don’t feel respected for their contributions and see opportunities for growth.

Generation X and even the up-and-coming Gen Y/millennial leaders have to navigate an additional barrier that can be awkward and uncomfortable. These up-and-comers must earn the respect of the team around them for them to be seen as a true leader. This is a drastic shift in leadership from previous generations where moving into the dealer role was an expectation given tenure and relationships in the dealership.

Contributing to the problem is that the automotive industry has changed so much. No longer is real-life knowledge and experience enough to sustain and lead a dealership into the future. Innovations in technology, a lingering fear of economic uncertainty, ongoing regulatory changes and generational perspectives of “old school” and “new school” way of thinking can build organizational tensions, impacting performance. Put simply, what may have been good enough previously is no longer good enough to lead your organization into the future—instead, formal education, operational training, and a thorough understanding of best practices will be key.

The “old school” versus “new school” issue often causes Gen X and millennial team members to conflict with their baby boomer leaders and employees about fundamental issues impacting the business, such as:

  • What work means. Perspectives of how work fits into our lives—the type of work culture one finds inspiring and the gratification they want from their career—are in constant flux. It’s not uncommon for Gen X and millennial workers to want more time outside the dealership, and older employees/leaders may interpret this as poor work ethic.
  • The nature of leadership. Generational perspectives on who should be considered for leadership may differ. Some feel leadership positions should be earned through tenure, while others think it is earned through performance.
  • How the pecking order works. When performance is rewarded over tenure, older staff may struggle with accepting the authority of younger personnel in more senior positions. (This is especially problematic for employees in family business—heavily scrutinized, your advancement may be viewed as favoritism.) This volatile mix can send an entire dealership into chaos. Loyal employees feel betrayed, and rising stars can find that they lack the buy-in to make changes. After all, the best operations person in the world can’t accomplish a thing without employee support!
  • How to lead effectively. Differences in leadership styles can damage relationships. There are some leaders who feel that motivating others is best done through a directive approach – “Do what I say because I hold the power.” Others appreciate and are driven more by personal influence – “I feel respected for my contributions. I understand the mission; so, I am on board.”

Although they can be subtle, these dynamics impact you and your developing leader’s ability to build respect and trust, as well as motivate and inspire your team to commit to the organizational mission and vision.

Leadership challenges derail performance

If you want to ensure your dealership is driven by strong leadership—today or in the future—knowing how to inspire a variety of people and having the necessary skills to stay operationally cutting-edge are two critical leadership barriers you and any developing leader must overcome.

However, you cannot address these problems simply by working in or “growing up” in the dealership. That’s why The Rawls Group partnered with NCM Associates to create the NCM-Rawls Dealer Executive Program™. The NCM-Rawls Dealer Executive Program™ combines NCM’s operational excellence and Rawls’ deep understanding of how to develop a high-performing dealership culture. Our collaboration allows us to go deeper into leadership development and tackle some of the harder issues and topics that most programs are afraid—or do not have the knowledge and expertise—to offer.

Whether you work with NCM-Rawls or pursue learning on your own, I urge you to think differently about how you want to lead. Choose to invest in yourself, as well as future leaders, to build solid leadership skills based on knowledge and real experience gained working in the dealership. If you do so, I’m confident that you will not only overcome these leadership barriers, you’ll create a thriving dealership for years to come.

Learn more about the NCM-Rawls Dealer Executive Program and how it can prepare you and your successors to lead your dealership into the future.

Permanent link to this article: http://blog.ncm20.com/2017/04/generational-tensions-4-barriers-to-automotive-leadership/

Adam Robinson

Employee Turnover is Killing Your Dealership

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The auto industry has dealt with a number of changes in recent years, largely in response to new spending habits and expectations of millennials both as consumers and employees. While dealerships have made great strides in connecting with this new generation of consumers, many businesses are still in need of significant improvement to retain their employees. In fact, the employee turnover rate within the industry is currently at an average of 67 percent according to the NADA Dealership Workforce Study, correlating to an industry loss of billions of dollars annually with the average dealership suffering an average of half a million dollars lost each year.

An issue half a decade in the making

This decline in employee retention has been steady since 2011, with the average sales position lasting a little over two years, according to the NADA, compared to nearly four years ago when the study began. Furthermore, data showed that while only 45 percent of dealerships had an average retention rate of three or more years; that number fell to about 33 percent when looking exclusively at those in sales positions. The private sector, by comparison, reported an average of 67 percent retention for the same amount of time.

Not surprisingly, the best-in-class dealerships with the highest revenue and profitability also suffer the lowest turnover rates. What’s more, dealerships across the board seem to be notably lacking at hiring and retaining women, with less than 20 percent of the workforce made up of women in 2015.

Another factor accounting for the loss in dealership employee retention is the changing landscape for consumers. Instead of going into a dealership and meeting with a salesperson when looking for a new car, customers are now spending up to 11 hours researching online and less than four hours inside a dealership speaking with a representative. With significantly fewer trips to a dealership, the salesperson has less of an opportunity to interact with, and push product on, customers. This new lack of negotiation skills, however, provides dealerships with the opportunity to hire a more diverse, and perhaps qualified, pool of candidates.

Retention issues impact sales

The employee retention rates not only cost dealerships a monetary loss in the form of search and training expenses but ultimately result in lost vehicle sales due to inexperienced sales staff and a lack of continuity with customers.

According to AlignMark Corporation, there are four main categories to help employers quantify the expense associated with employee turnover:

  • Separation – unemployment compensation, exit interview costs, etc.
  • Replacement – advertising, pre-employment testing, time, and materials
  • Training – time and effort required to bring new hires up to speed
  • Productivity – lapse in morale and production, as well as low-quality output

How to find the right employees

By 2020, millennials are expected to make up 40 percent of all new-vehicle buyers. Millennials also now form the majority of the workforce and currently account for 60 percent of new dealership hires, making it critical to maintain a focus on retaining this demographic to keep dealership floors stocked with quality salespeople. Millennials, however, dislike the conventional dealership commission-based compensation and instead prefer salaried positions with more steady income and advancement opportunities. This makes it difficult for many dealerships to retain their new hires, requiring those in hiring positions to reevaluate the interview process and hiring strategies altogether.

According to ESI Trends, common mistakes dealerships should avoid during the hiring process include:

  • Hiring quickly out of desperation
  • Hiring someone after just one interview with one person at the dealership
  • Overselling the position’s earning potential
  • Not trying to impress the recruit

Some additional best practices dealerships should consider to boost retention include:

  • Keeping job descriptions updated with the most relevant, accurate information
  • Implementing a business development center to funnel sales leads to salespeople
  • Offering creative compensation in addition to stable base wages
  • Providing a career growth and professional development plan

By switching to more base-waged positions with bonuses, dealerships make room for employees to meet customer needs versus negotiating the best price for the dealership. Dealerships that take things a step further and create a career path for their employees will significantly increase employee retention rates, especially for today’s millennial who places priority on career advancement.

The auto industry has recognized there is a problem in its employee retention and has taken steps to improve retention rates. However, there is still a long way to go in creating the industry culture and offerings to not only attract today’s top talent but to keep them there for the long haul. Until then, employee retention will continue to wage a significant toll on your dealership and the industry as a whole.

Thanks to NCM Associates’ partner, Hireology, for sharing their guidance on attracting and managing millennial employees. Learn more about Hireology and join NCM’s experts for more actionable advice on hiring the best people for your team in our Hiring Top Talent and Success-Driven Pay Plans classes.

Permanent link to this article: http://blog.ncm20.com/2017/04/employee-turnover-is-killing-your-dealership/

Brandiss Drummer

Employee Retention: Why Just Having a Pay Plan Won’t Work

Hispanic businesspeople talking

The automotive industry faces some unique challenges managing people, as evidenced by an average dealership turnover of 40.5%, with some positions, such as sales consultants, reaching up to 67%. Also, over 42% of dealership personnel are classified as millennials, whose turnover rate exceeds the average at 52%. In black and white terms, the average dealership will spend half a million dollars a year in turnover costs.

Retention problems are personal

I’ve heard of many approaches to combat retention issues in automotive. Some dealers recommend defining a career path and creating stability through a pay plan. Others point to providing a work-life balance or empowering people to make their own decisions. While all of these points are valid, I prefer to concentrate on a singular approach: relationship.

There are two reasons why I think all roads lead to relationship building: 1) perks are easy to find, and 2) one-size-fits-all solutions don’t work.

Perks are replaceable

First, let’s look at perks. If we’re honest, even the best benefits package is easily replaced. And there are a lot of businesses out there offering flexible schedules, bonuses, and other benefits. That’s the problem with focusing on material things: Your great employee could jump to the next job as soon as there is a better offer!

Everyone is different

Secondly, focusing on specific items like pay plans or flexible schedules leads to a “one size fits all” solution. But each employee has different ideas of what is important to them. For example, it may be vital to Betty that she works in a job where she gets weekly feedback on her performance. However, for Mark, that may make him feel micro-managed. Mark may prefer to have more autonomy, which makes him feel trusted and important.

Relationship building with each of our employees ensures that we are giving them what they need as individuals. Perks can be replaced, but it’s hard to replace a person you genuinely believe cares about you.

Think about it like a marriage. There is always someone out there who may have just a little bit more in this one area than your spouse, but they can never replace the feeling of someone who knows and loves you, the relationship that you have built with your partner over the years. This is the reason why factors such as “I have a best friend at work” and “my supervisor seems to care about me at work” show up on the Gallup study on positive business outcomes, “First, Break all the Rules.”

Building better relationships

So what can you do today to start building or cementing your relationships with your people?

  1. Recurring, one-on-one meetings. Take this time to get to know your employee. Let them lead the first part of the meeting, and be sure to ask questions about things going on at work, as well as significant events in their personal life. The point is to make them feel comfortable around you so that they will open up and you can get to know them. The key is consistency. Set up recurring meetings in your Outlook calendar and try your best not to cancel or move them. By keeping to the schedule, you will demonstrate their importance to you.
  2. Keep track of personal information for each of your employees. This was a great tip I got from one of my mentors. He kept a memo on his phone of important dates for each employee, such as their birthday, work anniversary, and wedding anniversary. He also stored information he learned in his casual conversations with them, such as favorite food, hobbies, children, interests, etc. This information became very helpful to give personalized gifts, or to help personalize the conversation in their one-on-one meeting.
  3. Be relatable. Relationships are two-sided, and your employees want to know you are human, too. Share things you have going on in your life with your employees, when appropriate. And remember, the old-school way of being the “stoic” manager doesn’t work anymore. It is OK to share concerns or stressors that you have, as long as you do so in a way that still conveys stability and competence.

For the skeptics, I am not entirely idealistic. I know that retention starts with hiring the right person in the first place. I also realize that you can’t win them all and that some factors go beyond a relationship. However, I genuinely believe that when you build a healthy relationship with your employees, the other more tangible factors, such as flexible schedules and professional development, will become more effective. As Simon Sinek says, build a great relationship with your people, and they will believe what you believe. They’ll work for you with their blood, sweat, and tears.

For more information on retention and great leadership, attend our Leadership Program in June.

Permanent link to this article: http://blog.ncm20.com/2017/03/employee-retention-why-just-having-a-pay-plan-wont-work/

Adam Robinson

Should Your Dealership Host a Career Fair?

Networking

Dealerships need bright and eager employees to fill their fixed operations and sales departments. Hosting a career fair at your dealership is a great way to find the right candidates and an opportunity to let them know about the benefits of working for you. While you may think career fairs are an anachronism, these events can deliver fantastic results—for example, AutoNation successfully held over 15 annual job fairs in cities across the country in 2016.

AutoNation was not alone in this endeavor. Hoehn Motors, an Audi dealership in Temecula, Calif., along with Charlie Clark Nissan in El Paso, Texas, conducted career fairs of their own in the last couple months. Each of these dealerships reported results that met or exceeded their expectations.

Dealerships must focus on ways to better attract millennials. The current pool of potential employees is largely made up of this incoming generation, who range in age from 18 to 34 years old. Fewer members of Generation X, who are between the ages of 35 and 54 years old, are seeking jobs at dealerships, and those in the Baby Boomer generation are beginning to retire.

In 2015, the National Association of Colleges and Employers found that employers attended an average of 31 career fairs. The youngest millennials are still currently college students, and they frequently show up to career fairs held at their campuses just to see what options are out there.

A career fair has two benefits: First, it allows your dealership to meet several potential job candidates in a short amount of time. Second, it gives candidates an inside look at how your dealership operates and the overall culture of the workplace. Sales managers, service managers, and other high-ranking employees can speak candidly with attendees about all aspects of their respective jobs, make a lasting impression, and collect resumes. The purpose is to inform job seekers about the careers and the positions available at your dealership and how they can fit into the broader picture.

Career Fairs Still Matter

Job seekers attend career fairs because they’re useful for plotting a career path. It’s possible your fair attendees are just there to find out about dealership culture and if it aligns with their current ideals and lifestyle goals; this is your chance to engage potential candidates and let them know about the day-to-day operations and responsibilities they would have to take on.

Career fairs are also networking magnets. People show up not only to meet with potential employers but also to network with each other. This networking creates a dynamic atmosphere where candidates and employees are mixing and building rapport. Relationships can pay dividends when an applicant is deciding whether or not to apply somewhere.

How to Prepare for Hosting a Career Fair

Much of the advice for job seekers attending career fairs applies to the hosts as well.

  • Be ready to introduce yourself: Have a concise statement ready about your dealership and the opportunities available. It’s likely that the job seeker is looking for work at other companies, including dealerships, so make sure you put your best foot forward.
  • Always maintain your enthusiasm: Make that job seeker feel like you want them there. Be warm, conversational, and engaging so that he or she feels comfortable.
  • Follow-up with the people you meet: After the conversation has ended, jot down a quick note about that person on their resume or business card so that you can recall them from the many faces you met at the career fair. If you’re interested in bringing that person in for an interview, they will feel a personal connection in your follow-up email or phone call.

Plan Your Career Fair

Your career fair will require some planning that will include a budget for venue space, marketing, printed materials, food, and more. You will also need to determine who from the dealership will attend the fair and whether job seeker registration is required.

Should your dealership host a career fair?  Yes—but you need to plan properly if you’re going to achieve success. If you want to try a career fair on for size, attend one at a local college or chamber of commerce where other companies also have booths set up. Study how the process works and see if you are interested in holding one of your own. Once you create an atmosphere for job seekers to come to you, then you can sit back and watch the applicants stack up.

Thanks to NCM Associates’ partner, Hireology, for sharing their guidance on attracting and managing millennial employees. Learn more about Hireology and join NCM’s experts for more actionable advice on hiring the best people for your team in our Hiring Top Talent and Success-Driven Pay Plans classes.

Permanent link to this article: http://blog.ncm20.com/2017/03/should-your-dealership-host-a-career-fair/

NCM Associates

#AskNCM: Are all dealerships losing employees over working hours?

How many hours do your employees work on average? Is it too much? Too little? Are they even working while they’re at work? Expert Robin Cunningham shares his observations about the ways successful dealerships are scheduling their employees.

Have another question for Robin or the other #AskNCM experts? Leave it in a comment below!

Permanent link to this article: http://blog.ncm20.com/2017/03/askncm-are-all-dealerships-losing-employees-over-working-hours/

Brent Carmichael

BHPH Basics: Inventory Acquisition

Vehicles in Lot

One of the hottest topics in the Buy Here Pay Here (BHPH) world is—and has always been—inventory. Not only where to buy vehicles, but also what stock to select and where to find it. Like most other areas of the BHPH business, the most successful dealers are those who focus on the basics. I’m also a firm believer in the K.I.S.S. philosophy: Keep It Simple, Stupid. No need to over think, and thus, over complicate things.

Repeat customers

The first fundamental that successful dealers focus on is repeat business, aiming for 30 to 40 percent of their monthly sales from repeat customers. These people will be either low-balance customers who traded into a new vehicle or previously paid-out customers who have returned to purchase again. With this approach, a sizeable portion of the dealership’s monthly inventory needs could be satisfied with vehicles with known histories. Pretty valuable information to have!

Repossessions

Recycling of repossessions is the next basic. With repossessions, you have the ability and time to check out the vehicle completely to determine its reconditioning need. You also have some historical information for it. Some of my dealer clients are recycling 60 percent of their repossessions each month, on average, to put back out on the lot for sale. The only negative seems to be that the recycled vehicles tend to have a higher reconditioning cost. They may need a little more love to get lot-ready but, overall, this tactic is more cost effective than purchasing at auction.

Auctions

Speaking of auctions, they are an essential you should not overlook. It is true that there are not as many vehicles going across the block these days, but it is still an effective source. One positive to the downturn in vehicle volumes at auction is that auctions must compete for dealer business. Some sales even waive buy or post-sale inspection fees! There is no better time to expand your horizons, so check out as many auctions as travel and expense will allow.

When shopping for new or additional auction sources, don’t limit your choice to just the large national sales. Independent auctions are becoming very aggressive, going after dealer business as well. I may be a little old-fashioned, but I’ve always preferred the independent auction because they seem to provide better service and a better overall buying and selling experience.

Digital options

I also recommend utilizing the internet in your search for an auction pot o’ gold. Most auctions, national and independent, post most—if not all—of their upcoming sale vehicles online with such tools as Smart Auction, Open Lane/Adesa, or OVE. Not only can you use these systems to purchase vehicles, but dealers can also use these resources to research upcoming sales and plan their next visits. You might just stumble on an auction you weren’t even aware existed.

Dealer trades

A final basic in the K.I.S.S. approach to inventory acquisition is dealer trades. New car sales are at an all-time high, so dealers should have a few trades lying around. No, it won’t fill your overall need due to those who are holding on to their trades waiting for the super aggressive subprime market; but, you can still fill a partial need with this buying tactic.

I think the key here is personal contact with the dealer. You aren’t going to get anywhere by just calling the dealer asking what they have! Instead, take the time to visit the dealers … and develop a mutually beneficial relationship for the long run.

Not so basic: private sellers

Not necessarily a basic, but a stone that should not go unturned, would be the private seller. Craigslist, eBay, newspapers, and auto magazines are all sources to find vehicles. I’m not going to lie: I used to turn my nose up at this tactic, feeling it wasn’t worth my time or effort. But with today’s economic challenges, there are sellers out there who need the money to get by and are far more reasonable in their expectations. Will it fill the lot? No, but it could fill part of it, and that is what counts.

When it comes to BHPH inventory acquisition, I think it comes down to two very simple questions: How much do you have in the bank account? And how much of that are you willing to spend? Finding the right inventory for the right price is still possible. Just focus on the basics, and soon you’ll be working smarter, not harder, to fill your lot.

Learn about NCM’s 20 Group and consulting options for your BHPH dealership. And don’t forget to check out our BHPH training options.

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