Hireology eBook: The True Cost of Employee Onboarding at Dealerships

By Team Hireology,
August 24, 2016


It’s no secret that turnover is a common issue affecting the retail automotive industry. We’ve discussed this issue many times, sharing multiple tips and resources on how to help dealerships lower their turnover. However, there’s another angle we’ve been studying and proven to help dealerships save money and lower turnover-and it involves incorporating technology into your onboarding program.


In our latest eBook, we break down the true costs of onboarding and offer guidelines on how to create a successful process to get your new employees started off on the right root at your dealership, as well as stick around for the long run.


Here’s a free sneak peek of our new eBook below (to download the full version, click here). Enjoy!



The True Cost of Employee Onboarding at Dealerships & How to Reduce It


It should come as no surprise to those in the retail auto industry that the work is hardly finished once a deal is closed. In order to foster long-term relationships with customers, and to maintain a healthy, high-performing dealership, there’s much to be done after the sale. The same holds true for hiring: you may find a great new candidate, and that candidate may be eager to join the team, but there’s a lot that can go wrong (or right) between the time an offer is accepted and the time that candidate becomes a fully integrated contributor.


In this eBook we set out to establish what’s at stake when employees are onboarded, and how this important phase in the employee lifecycle can be managed and optimized.


Not Your Father’s Orientation Program


Onboarding vs. Orientation…

Is an important distinction to understand, because the two are not the same. Employers have long known the value of getting new hires up-to-speed as quickly as possible. Many relied on orientation programs-those one or two-day introductions to a company-as a way to accomplish this goal. That was fine, but orientation never fully addressed longer-term needs, like ensuring people were adequately trained for the variety of challenges they might face on the job. Onboarding fills this void, providing a series of steps over time, such as mentoring and training programs, to get new hires acclimated and set them up for success.


Onboarding Matters…

Because if new hires are unhappy or don’t fit in at your company, you’re back to square one with filling the open position. Just think of all of the time and money that went into recruiting those people, not to mention any investment made in training, and the expense adds up quickly. Even employee morale can suffer if there’s high turnover. By giving adequate attention to integrating new hires into your team effectively, you can help retain those employees you worked hard to recruit.


The Cost of Onboarding


Driving the Need for Onboarding…

At dealerships is a history of poor employee retention. The National Automobile Dealers Association (NADA) notes that car dealership employee turnover is at 39% annually, and car sales consultants come in at a whopping 72% turnover rate. That’s a great deal of talent to lose each year, especially when you consider how expensive it is to recruit, hire and train repeatedly. According to Dealerstrong’s Harlene Doane, the cost per new hire at dealerships can run around $10,000-no small sum.


Oh, Millennials…

And the additional challenges they bring! This generation accounts for half of all new dealership hires, with many going into entry-level sales positions. Millennials are known for their job-hopping tendencies and that’s certainly true at dealerships. NADA reports that millennial turnover at dealerships is at 54 percent.


The Good News…

Is that onboarding can make a notable difference with retention among all employee age groups. A McKinsey study finds that top performing dealerships have turnover rates that are 17 percentage points lower than lower performing dealerships. What sets them apart and contributes to that success? The highest performing dealerships are more likely to have better training, onboarding and interview processes. A study by the Aberdeen Group finds that new hires are 69% more likely to stay longer than three months if they experience well-structured onboarding. 


To read more, download the entire (free) eBook below by clicking on the link below! 

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