- Job Descriptions
- One-sided Interviews
Your dealership employees are a reflection of your brand. They are who your customer interacts with, purchases from, and need to build trust with before they make their vehicle purchase. Each new hire costs a dealership an average of $10,000, which can add up if you have a high turnover rate.
According to a 2019 Cox Automotive Dealership Staffing Study, the average annualized turnover rate at a dealership is roughly 80% for sales consultants and 46% for dealership employees overall. You probably have a team consisting of entry-level salespeople eager to help people find their dream car. You may also have non-sales staff such as service writers who pull long hours but feel they don’t make enough money and should be compensated for overtime.
Rather than discussing the specifics you should look for in the hiring process (every company has its own cultural and skill requirements), we’ve pulled together some hiring practices you may not realize can hurt your dealership’s success. Check them out:
- Minimal job descriptions: If you want to attract the best, you have to write a job description that has a bit more information than just the minimum requirements. Be clear with who and what you want out of that position, their required job experience, and what their job requirements would be. A short blurb will come off vague and will get a lot of applications from people who don’t have the necessary qualifications.
- One-sided interviews: Job interviews are not just one-sided. You want to present a workplace that would make someone want to work at your dealership. An interview is not just about you checking out candidates for a position. It’s also a first impression of what it would be like working at your dealership. If you instill a desire to work for you right from the interview process, they’ll be more enthusiastic about coming to work.
- Making an offer on the spot: When you make an offer on the spot, it comes off as desperate. You need to establish a comprehensive hiring process that includes different interviews, checking out references, and perhaps a trial project at the dealership to show them what a typical day would be. Something freely given has little value, so even if you are desperate to hire, don’t appear to be in a rush.
- Not doing a background or reference check: Just as bad as it is to offer a job right on the spot, so is not performing a background or reference check. You may feel the pressure to hire someone right away and that verifying someone is who they say they are is a waste of time. In actuality, it keeps your dealership team and customers safe. Not to mention, it’ll save you money by hiring a quality, truthful employee instead of someone who lied about their work experience. After all, a survey conducted by CareerBuilder discovered that over half of hiring managers report they’ve caught prospects lying in their resumes. A simple reference or background check will save you that stress.
There you have it, four different hiring practices that can actually hurt your dealership’s success. Simply rearranging a few areas in the hiring process will not only save you time and future aggravation, but it’ll also save money from hiring people that aren’t in it for the long run. Make your hiring process a priority at your dealership by developing a system that guarantees any new hires you bring on will be the right hires.