What is your organization's most valuable asset?
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Is it the brand you sell? Perhaps could it be the location and condition of your facility? In the end all those elements are important, but without the right team in place, you will struggle to achieve and sustain momentum.
People and process separate the highest performing groups from those that struggle. A clearly defined process can help compensate for limitations in natural abilities and inexperience.
Assembling a high-performing team requires your organization to establish and maintain a system for recruiting, selecting and retaining the best talent. Just as you work to maintain adherence to the "road to the sale" in your dealership, you must place the same level of importance to attracting and retaining high performers.
There are many accepted benchmarks in our industry that dealers and managers apply as reference points. There are standards that dictate acceptable levels for closing percentage. 4-3-2-1, for example produces a 25 percent closing rate for overall sales opportunities. By comparison, few dealerships hold this same expectation for closing Internet leads. The more accepted norm is often 10 to 15 percent. Fifty percent penetration on vehicle service contracts and/ or $1,000 PVR in the backend continue to be the standard most F&I managers are expected to achieve.
So what standard do we hold our managers to as it relates to staffing? If recruiting, selecting and retaining are part of every manager's job description (and if they are not, they need to be), then what standards or benchmarks have you established and communicated?
Last week at your dealership a discussion probably took place regarding the number of opportunities (ups) you worked with, and the resulting sales that occurred. There were conversations regarding the number of RO's in service, the status of bank contracts still in transit (CIT). But ask yourself this: Did you even ask the management team how many interviews were conducted last week? Bear in mind, while you may be at full staff (no current openings listed), is your team comprised of all "A" players?
There are fundamentally two types of players on any team: campers and climbers. In a performance-based business, if the opportunity to hire a climber exists, then why not put a system in place to pursue them?
Like anything else you intend to improve, establishing and communicating a standard will be your first step. Start slowly. Have each manager conduct one interview each week with a potential candidate. Even if your yield is only one in 10 applicants, that new player has the potential to be your next top performer. In a market where many stores are operating with as few as 10 sales people, one person can make a big difference.
Finding potential candidates for hire is like finding new sales prospects; it requires a consistent effort. Here are a couple of suggestions. First, start with the people you already have. When you examine the cost of finding a viable applicant, you will find that paying out a $500-$1,000 bonus to your current employees is a cost-effective strategy. Obviously you don't pay unless the new hire works out. Ninety to 180 days of active employment is the standard.
Secondly, work with your printer or design team to create a business card that is a "recruiting card." All managers would then be expected to carry these with them at all times. When you are out in the community, the idea here is to look for someone providing great service and or someone with a great attitude; basically, someone that hustles. Approach them one on one and ask them to come in for a conversation about getting into the business. Offer to buy them lunch or a cup of coffee.
The recruiting card should include a contact number and e-mail, but more importantly it will need to contain information explaining that this is regarding a career opportunity.
Applying the "rule of 3's" will help provide structure and uniformity to the selection process. This approach begins with establishing the standard that all applicants will be interviewed three times prior to the offer of employment. The interviews are to be conducted by three different managers. The last element is the most important. The interviews are to take place on three separate visits to the dealership. Anyone can show up on-time, looking good, sounding good, and yes, smelling good once. Can they accomplish this three times? If yes, then you have a viable candidate.
This article has been shortened from the original version which originally appeared in the February issue of AutoSuccess Magazine. You can read the full article and the entire monthly issue online at their website.
Kirk Manzo is the president of The Manzo Group. He can be contacted at 800.858.6903, or by e-mail at kmanzo@autosuccessonline.com.
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