2015 National Automobile Dealers Association (NADA) Dealership Workforce Study<\/a> placed car dealership employee turnover at 39 percent. The most troubling statistic, though, points to the fact that car sales consultants have a 72 percent turnover rate. That means that every year, the average dealership loses 72 percent of its sales team. How can you make money if you\u2019re constantly trying to replace your staff?<\/p>\nThere are certain things you\u2019re up against that are industry-wide and hard to compete with. For example, many salespeople are entry level and after a while, feel like they simply can\u2019t make enough money. They may give up on sales altogether, or their eye may wander over to luxury dealerships where the earning opportunities are usually greater. It takes a committed, driven, passionate individual to be successful in an auto dealership, and as you\u2019ve likely witnessed, a lot of people aren\u2019t up to the challenge.<\/p>\n
Constant turnover isn\u2019t just annoying, though. It\u2019s expensive. The Society for Human Resource Management says that total costs associated with a bad hire can be up to 200% of that person\u2019s annual salary. With that figure in mind, imagine how much money you may have lost over the past few years due to employee turnover.<\/p>\n
It\u2019s time for you to take control of your dealership hiring process. If you make the effort to organize what needs to happen and commit to it, you\u2019ll finally start hiring top employees that don\u2019t just stick around \u2014 they make you money.<\/p>\n
Dealership hiring practices you need to avoid at all costs<\/h3>\n
Dealerships with high turnover rates usually engage in bad hiring practices. Here are some of the most common hiring practices that are never a good idea.<\/p>\n
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1. Hiring a relative or friend with a bad track record<\/strong><\/p>\nIn general, referrals from existing employees can be great. New hires that come in as referrals tend to stick around longer than the average Joe who responds to an ad, but they need to be the right<\/em> referrals. If you are in a tight spot and you have a friend or relative that you know is looking for a job, think for a second before you go any further. Is this person reliable? Do they have a good track record at past jobs? Does their personality leave a lot to be desired? It\u2019s wonderful to help people you care about, but not at the cost of your business.<\/p>\n2. Making an offer on the spot<\/strong><\/p>\nYou had a few employees leave over the course of a month or so and you\u2019re desperate \u2014 but do not, under any circumstances, offer someone a job in the very first interview. It makes you look desperate, raises red flags, and increases the likelihood that you\u2019re hiring the wrong person. You need to develop a comprehensive hiring process that includes multiple interviews, reference checks, and possibly a project of some sort or a day in the dealership.<\/p>\n
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3. Not doing a background or reference check<\/strong><\/p>\nYou may feel like background and reference checks are a waste of time, but they\u2019re not. A survey from CareerBuilder <\/a>found that 56 percent of hiring managers have caught job candidates lying in their resumes; a quarter of those hiring managers have even encountered people who list companies they\u2019ve never actually worked for. Background checks are also important for keeping your staff and customers safe, in the event a candidate has done less-than-respectable things in the past.<\/p>\n4. Believing that interviews are one-sided<\/strong><\/p>\nNews flash: You\u2019re not just interviewing someone for a job \u2014 they\u2019re interviewing you, too. You can put them through the wringer and make them feel like they have to impress you, but at the end of the day, you need to put your best foot forward too. Be polite and punctual, make sure your dealership is clean, and work hard to ensure they feel comfortable. You want the candidates to want<\/em> to work for you\u2026and even if you don\u2019t hire them, they should walk away with a favorable impression of your dealership (they may just come back to buy a car from you).<\/p>\n![\"03-5](\"https:\/\/www.autoraptor.com\/wp-content\/uploads\/2016\/08\/03-5-Dealership-Hiring-Practices-That-Are-Bad-for-Business-01-300x300.png\" "\\"\\"")
5. Writing short, vague job descriptions<\/strong><\/p>\nIf you want the best candidates possible to apply at your dealership, put some extra effort into the job descriptions you post. If you are 100 percent clear about the type of person you need on your team, they\u2019re going to find you. If you post a short, vague blurb about the position, don\u2019t be surprised if you get a lot of resumes from unqualified applicants.<\/p>\n
If you shift your priorities and focus on attracting solid hires, you\u2019ll save time, money, and eliminate a lot of stress from your daily life. Make the commitment to develop a consistent dealership hiring process and ensure it is implemented across the company \u2014 you\u2019ll be glad you did.<\/p>\n
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