The cost of hiring can make a large dent in dealership profitability depending on the hire’s success. Today, 70% of a dealership’s gross margin is tied to the dealership staff: $58 billion across the industry, according to DrivingSales. Compared to $8.9 billion in fixed and variable operational costs, you’ll realize the opportunity presented by a standard hiring process.
With the right process implemented, the amount of time and money you spend on hiring can be drastically reduced. All you need is the right strategy.
Assessing Your Costs
Before deciding where to cut spending, you’ll have to determine how much employee recruitment is actually costing your company. Take a look at both your direct costs, like turnover, job board advertising fees and your indirect costs, like additional training or loss of business during a position vacancy.
Another fee that can cause a dent in your recruitment spending is from regularly using paid job board posts. Relying solely on job boards instead of your own career site can start to rack up your recruitment bill.
Dealerships can spend a substantial amount of time and waste significant amounts of money searching for the right candidate-due to the fact that they lack a consistent hiring process. The process will be much quicker if the majority of your interviewees accept the job. The hiring manager should be deciding early on which candidates they’ll be offering jobs to and what exactly the offer entails.
In order to actually spend less time and money on your dealership’s hiring process, you need HR software that can help you identify the team that’ll stick around for the long haul.
Enter Hireology-the retail automotive industry’s leading hiring solution. We’ve worked with dealerships of all sizes to reduce turnover by 50%, time to hire by 80%, and investment per hire by 60%.
Working with some of the top dealerships across the country, we’ve been able to identify trends and best practices for the automotive hiring process. We wanted to share some of the interesting stats from the rooftops that we’ve helped to see if they can help your organization.
A Snapshot of How Hireology Saves You Time & Money
Here are a few metrics showing how Hireology has helped save hundreds of dealership’s time and money this year:
The Hireology process helps dealerships automatically reject over 90% of unqualified applicants before entering the candidate stage-saving significant time to focus on the right candidates. From there, our dealership clients typically hire one in 10 candidates.
For each position opened with Hireology, we see about 84 applicants. Do you actually have the time to interview that many people? We help dealerships prioritize whom to speak with so these 84 applicants turn into 10 candidates–saving hundreds of hours for each position.
Benefit from Using a SmartRankTM Pre-Screen Survey
Hireology recommends using pre-screen SmartRankTMª survey questions for all of your open dealership positions. They’re an important part of the interview process and allow HR managers to really focus on those interested in the job, as well as those who score the best.
The SmartRankTM survey questions are determined by the job-specific, pre-screen statements the HR manager answers when opening the job, so it’s related and customized to each position. They’re customizable to include knockout questions, such as: weekend schedule availability, certifications, experience level, and others to eliminate unqualified applicants.
Only 60% of applicants actually take the surveys – if they don’t complete one, you’ll know that they aren’t seriously interested in the job.
We see SmartRankª surveys as a great first step to understand whom to prioritize in your candidate pool. As you start hiring, Hireology gives you a numerical score to set as a benchmark for your top performers.
Time saved with Hireology SmartRankTM surveys: 11,600 hours
According to The Wall Street Journal, the industry average time it takes to make a new hire is about 25 business days. Hireology can cut that time by nine days, so it only takes your dealership approximately 16 days to make a new hire.
Hireology projects that by the end of 2016, dealerships using our SmartRankTMª surveys will save nearly 18,850 hours from the hiring process: over 9 years of full-time work that would be otherwise wasted on unqualified candidates!
As for saving money for your dealership, the recruiter cost savings with SmartRankTMª is approximately $446 per rooftop versus a recruiter-all of which adds up for dealerships with multiple locations.
For the average cost of a new hire, the industry average is about $3,000 per new hire (including hard and soft costs). For dealerships saving a considerable amount of money and using Hireology, the average cost of a new hire is $317: nearly 90% less than the industry average.
To learn more about hard and external hiring costs, click here.
Take Advantage of Your Own Career Site
Career sites are a great way to showcase your employment brand and attract better job seekers. With Hireology’s Career Site Plus, we’ll create a clean employment website that lets top job seekers quickly learn about your business and team. Our mobile-friendly approach means applicants can learn and apply to your positions no matter which device they’re using.
Career sites are a great way to create a stream of highly engaged and qualified candidates that seek you out proactively. Across our customers, the average career site drove only 4.1% of dealership applicants in 2016, but resulted in 30% of eventual hires!
Ensure Quality of Hires
Hireology lets managers score your new hires to ensure you’re making the best possible hire for your dealership. 70 percent of auto hires made across our network were scored as either ‘Quality’ or ‘Superior’ hires by their managers 60 days after they joined their dealership. Make sure all of your hiring costs are going towards an excellent hire fit to help your dealership business excel on the right path for the long run.
Hiring Smart from the Get Go
Developing a process to hire the best candidates for your positions will ultimately save your dealership time and money by avoiding costs through employee retention. This starts with the proper strategies for hiring seasoned employees who will bring in more business to your dealership while being satisfied with the culture and values of your brand.
There are several ways to cut down on recruitment costs. However, by creating a loyal staff of employees and a positive work environment, you’ll keep your positions steadily filled and avoid recruitment costs overall.
Want to start saving your dealership time and money? Get of preview of how Hireology works for your dealership by clicking on the link below.