Closing out NADA with two fresh product releases and a ton of activity, the Hireology team also had the opportunity to share some of our success stories and thoughts on industry trends with Automotive News. Read more below on our recent coverage, and how we’re helping dealers hire better teams:
Hireology Coverage From Automotive News & NADA100:
Turnover set off alarm bells at Toyota store
January 23, 2017
Rick Evans figures bad hires at his Toyota dealership in Fort Wayne, Ind., were costing his store at least $500,000 a year. Probably even north of $1 million. “I was not happy,” Evans told Automotive News.
In June, Evans Toyota launched a hiring approach guided by Hireology. Candidates can apply online, even via mobile devices. Applicants are screened via questionnaires. Evans has developed a list of reasons to work for Evans Toyota.
The initiative is paying off “absolutely, 100 percent,” Evans said. The store hired about 25 people across all departments. Retention of new hires is “much better,” with 75 percent still employed. He would have expected to lose at least half under his old approach.
The store sold two-thirds more cars in December 2016 compared with the previous December. If the progress continues, profits will rise dramatically, and he’ll have a good chance of recapturing much of that $500,000-plus lost annually to bad hires. Said Evans: “It’s really changed my store.”
Employee turnover costs dealers billions
January 23, 2017
Bad hires cost dealerships billions of dollars a year. Few dealers are trained in how to hire, but as more face up to the implications of the problem, they are starting to look for help with the task and experiment with new approaches, say dealers and dealership employment experts.
Improving the people side of automotive retail is the last great return on investment available to dealers, said Adam Robinson, CEO of Hireology, a hiring software provider and consultant. The difference between a mediocre dealership and a great dealership is the strength of its people, he said.
“Most dealerships have a better process for buying office supplies than they do for hiring people,” Robinson said. “It’s already hard enough to be a dealer. Dealers can’t control cheap private-equity dollars consolidating stores. They can’t control interest rates, recalls, regulators. They can’t control ride-sharing or nondealer models. The only thing they have 100 percent control of anymore is who they put on their payroll.”
How dealers can hire and keep top talent
January 26, 2017
In the quest to recruit and retain talent, dealers must create a hiring process and a desirable culture that includes stable pay, good hours and career growth opportunities, experts said Thursday at the Automotive News Retail Forum.
“You think you have a job applicant problem,” Robinson said. “You have a marketing and talent funneling problem.”
Many dealers also fail to stick to a uniform hiring process, opting instead to make impulsive hires based on gut instinct, said Suzanne Malo, director of executive search at DHG Search. “Don’t change your entrepreneurial spirit, but in recruiting, slow down. You need to follow the process, no short cuts.”
Cross-training boosts resources and teamwork
January 30, 2017
Some dealerships may incorporate team leads rather than having the traditional F&I manager, said Candice Crane, vice president of dealer solutions at Hireology, a Chicago company that consults on hiring and retention issues.
“You may eliminate the F&I position in the traditional sense, but you’re adding a team lead [who] ensures the process is executed and customer experience is top-notch,” she said.
Arranging financing and ensuring compliance should remain with the finance staff, but “those same people don’t have to sell the menu,” Crane said. Sales associates can sell F&I products, she said.
Customer experience imperative drives changes in hiring
January 30, 2017
Now dealers have a more thoughtful approach to hiring. Many say they want someone with emotional intelligence, accountability and time-management skills, for example.
Candice Crane, vice president of dealer solutions at Hireology, a Chicago consulting firm that helps dealerships recruit and hire, said the most successful candidates are concerned “less about making a whole bunch of money and more about meeting the customers’ needs.”
“It’s more altruistic, looking for people who are passionate about the customer experience versus money,” she said.
See What Hireology Can Do For Your Dealership
We’d love to show you how we can transform your dealership’s hiring headaches into a well-oiled process. Talk with a Hireologist today and learn what we can do for your dealership team.