Dealers' Choice - Media Communication Group

Are You Having Problems with Turnover?To insure a profitable future, dealers and managersmust face a multitude of issues when it comesto building a staff of reliable and hard workingemployees. A sure “profit killer” is turnover,something every dealership can improve upon.The US Department of Labor has found that it isvery wasteful to hire “short term” employees. Arealistic calculation of the cost of hiring such “shorttermers” includes wasted money and time spent onrecruiting, training,and the salaries paidto those who proveto be non-productive.The impact of theseoften overlooked“costs” increases as one moves up the chain ofcommand. Mistakes made in hiring mid to upperlevel managers can cost a fortune. Studies haveshown that reducing employee turnover at anaverage dealership 10% will yield up to $300,000.00in annual gross profit. That is $300,000.00 you canadd to your bottom line by merely keeping a fewmore employees from leaving.Think about it: How much does it cost you to bringon an employee and how much does it cost if youhave an employee in the door one day and out thedoor in a few weeks? Doing everything possibleto maximize your odds of that person being a longterm and dependable employee can do wonders foryour bottom line.Utilizing proven methods to reduce turnover can,and will, increase your bottom line. The followingare 5 key ideas to keep in mind for your hiringprocess:• Failing to be in compliance with laws asthey pertain to hiring. - Every dealership shouldhave an established and consistent hiring processthat should be followed for all positions. Withoutsuch, you may sooner rather than later be a victimof expensive lawsuits.• In the car business, “smooth talking”applicants are quite common. - Don’t be fooledand believe everything you hear. Look into theirpast. Know where they really worked and why theyreally left those jobs.• Relying on an applicant’s vague explanationsabout their past. - Studies have shown a staggeringamount of applications and resumes are falsifiedor conveniently misleading. Never accept a simpleresume in place of a thorough application.• Too common in the auto industry, midlevel managers who recruit and hire can placetoo much emphasis on having previously workedwith an applicant and “buddy” relationships. - Inthe business world, facts, not friendships shoulddetermine a hiring decision. Final hiring decisionsshould be made by upper management.• Not doing a detailed and consistent preemploymentscreening process of all applicants. – Inother words preventing the hiring of troublemakers,criminals and those looking to steal from you,people looking for an excuse to sue you, and peoplewho can put you in a situation to get you sued.Don ColePresidentDonald ColeVice President/CFOOne way to help improve your turnover and the overall quality of new-hires is to look into whatThe Cole Group is doing for all applicants at over 300 TADA member dealerships. The ColeGroup has been officially endorsed by the Association because of their proven 37 year successin pre-employment screening for the auto industry. Check out their Dealership ScreeningProgram showcased on their website at www.thecolegroup.com30