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Harlene Doane, COO
Hiring, Training and Retaining
Talent for Higher Profitability
How to Hire, Train and Retain for
Higher Profitability
The Ugly Word
2x worse to your business than any 4 letter word
One ...
Personnel Turnover
Not always a bad thing
Must be monitored
Personnel Turnover
When is turnover a bad thing?
• When it’s too high
• When it’s too centralized
(department or position)...
Turnover Rate
1) Average the # of
unique individuals who
received a paycheck
each month for the
last 12 months.
2) Count t...
Turnover Rate
3) Total # of individuals
receiving a paycheck
on the last pay cycle.
42
92
Subtract #3 from #2.
This is tot...
Turnover Rate
Turnover rate for Sample Motors
Total terminations/avg # of employees
* 100%
92/50*100 = 184%
Turnover Rates
Turnover Rates
All Industries 42.2% National
Automotive All 36% National
Highest turnover 66% Automotive Sa...
Hard Turnover Cost
Employee termination duties 2hr@$15= $30
Creating & placing ads 2hr@$15= $30
Ad cost or promotions $250...
Sample Motors Turnover Cost
$3,510 Hard Cost
+$7,020 Soft Cost (2x Hard)
$10,530 Total Cost Per New Hire
X 92
$968,760
HiringSlow Down to Get it Right
5 Steps to Hire Right
1. Write a Clear Job Description
2. Create Great Ads
3. Screen & Test
4. Interview
5. Additional Int...
Write a Clear Job Description
• Job title
• Immediate supervisor
• Purpose
• Duties & Responsibilities
• Qualifications
• ...
Great Ads
You are selling the job - Why
work for you?
Use your job description for
the base
Be creative (but not deceitful)
Highly successful auto dealer is searching for the highest caliber sales professionals to join the
automotive industry and...
Looking for that upbeat winning personality that loves people and solving
problems.
Entry level - Full time position with ...
Screening & Testing
Job description match
Accomplishments
Duties or responsibilities
Test for skills needed
Interviewing
1. Know what you can and can’t ask!
2. Resume/application verification
3. Set of standardized questions
a. Re...
Additional Interviews & References
Don’t be hesitant to hold multiple interviews, especially for
management positions
Refe...
Training
Train for Results
What to Train
1. Automotive
2. Dealership
3. Position
Grade Your Sales Team
What % of your sales staff can execute these exactly as
you want in your store?
Execute a dealership...
When to Train
• Upon Hire
• Ongoing
• Daily (in store)
• Weekly (in store)
• Monthly (webinars, peer groups)
• Annually (c...
Why Train
To improve profits!
To improve retention!
5 Reason Employees Leave Employers
1. Job was not as expected
2. Compensation not as expected
3. Feeling undervalued or un...
The biggest benefit of training and
retaining your people is …
increased productivity, because
well trained, tenured emplo...
Retaining
Reduce Voluntary Turnover
– Keep the Talent
8 Ways to Retain Talent
1. Provide clear expectations
2. Set realistic goals
3. Provide opportunities for growth/reward
4....
8 Ways to Retain Talent
5. Provide feedback
6. Share your passion and vision
7. Foster honest communication
8. Offer compe...
The New Plan
Hire Right
Train for Results
Retain Talent
Build a HTR Plan
Determine turnover rates
• Store
• Department
• Position
• Voluntary vs. Involuntary
Create focus for each area
•Hiring
•Training
•Retention
Build a HTR Plan
Determine how to execute
•Current Staff vs. New Hire
•Deadlines, Dates, Schedule
•Identify Obstacles to E...
Build a HTR Plan
#1 Reason things don’t get
accomplished …
they never got started.
#2 Reason … they didn’t have a
deadline
Like what you saw?
For more information on our Products & Services:
 http://www.dealerstrong.com/
Thank You. 
How to Hire, Train, and Retain Talent for Higher Profitability
How to Hire, Train, and Retain Talent for Higher Profitability
How to Hire, Train, and Retain Talent for Higher Profitability
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How to Hire, Train, and Retain Talent for Higher Profitability

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Harlene Doane, DealerStrong's COO, goes through the steps of how to hire, train, and retain your staff for higher profitability. She addresses the ugly word most businesses try to avoid: Turnover

Published in: Automotive
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How to Hire, Train, and Retain Talent for Higher Profitability

  1. 1. Harlene Doane, COO Hiring, Training and Retaining Talent for Higher Profitability
  2. 2. How to Hire, Train and Retain for Higher Profitability The Ugly Word 2x worse to your business than any 4 letter word One that most business owners don’t want to talk about … at least as it relates to employees TURNOVER
  3. 3. Personnel Turnover Not always a bad thing Must be monitored
  4. 4. Personnel Turnover When is turnover a bad thing? • When it’s too high • When it’s too centralized (department or position) • When it’s the top talent
  5. 5. Turnover Rate 1) Average the # of unique individuals who received a paycheck each month for the last 12 months. 2) Count the # of unique individuals who received a paycheck in the last 12 months. 50 134
  6. 6. Turnover Rate 3) Total # of individuals receiving a paycheck on the last pay cycle. 42 92 Subtract #3 from #2. This is total terminations in the last 12 months. 4)
  7. 7. Turnover Rate Turnover rate for Sample Motors Total terminations/avg # of employees * 100% 92/50*100 = 184%
  8. 8. Turnover Rates Turnover Rates All Industries 42.2% National Automotive All 36% National Highest turnover 66% Automotive Sales 2015 NADA Dealership Workforce Study
  9. 9. Hard Turnover Cost Employee termination duties 2hr@$15= $30 Creating & placing ads 2hr@$15= $30 Ad cost or promotions $250 Screening, testing, interviewing 15hr@$15= $225 Paying someone else to do the job until new hire begins 80hrs@$15*1.5= $1,800 Orientation and training of new hire Trainer – 40hr@$20= $800 New Hire – 40hr@$15= $600 Total Hard Cost $3,510
  10. 10. Sample Motors Turnover Cost $3,510 Hard Cost +$7,020 Soft Cost (2x Hard) $10,530 Total Cost Per New Hire X 92 $968,760
  11. 11. HiringSlow Down to Get it Right
  12. 12. 5 Steps to Hire Right 1. Write a Clear Job Description 2. Create Great Ads 3. Screen & Test 4. Interview 5. Additional Interviews & References
  13. 13. Write a Clear Job Description • Job title • Immediate supervisor • Purpose • Duties & Responsibilities • Qualifications • Physical requirements • Direct reports
  14. 14. Great Ads You are selling the job - Why work for you? Use your job description for the base Be creative (but not deceitful)
  15. 15. Highly successful auto dealer is searching for the highest caliber sales professionals to join the automotive industry and their expanding operation. If you don't have automotive sales experience, don't miss this opportunity to be trained to excel. If you are a high energy individual, who is motivated and focused on your success this is the opportunity to excel. If your past employment includes focusing on customer service, or working with a very defined process this position is a great fit for you. There is no need to be afraid of sales. Sales is simply a defined process of meeting the needs of the customers in this dealership. Job Requirements *Valid drivers licenses *Able to clear an insurance screen to operate our vehicles *Ability to follow direction and process consistently *Ability to deliver a high level of customer satisfaction *Ability to communicate and present yourself in a professional manner *Ability to execute customer follow-up as mandated by your immediate supervisor. Exceptional earning potential and room to grow with a expanding company.
  16. 16. Looking for that upbeat winning personality that loves people and solving problems. Entry level - Full time position with opportunity for growth. DUTIES & RESPONSIBILITIES: • Provide an outstanding customer experience • Follow direction in showcasing company products and options • Maintain accurate customer records • Be professional in dress and manner QUALIFICATIONS: • Computer skills • Ability to prioritize effectively; strong organizational skills. • Strong written and oral communication skills • High school education or equivalent All training provided. Base Salary plus bonus eligibility from day one.
  17. 17. Screening & Testing Job description match Accomplishments Duties or responsibilities Test for skills needed
  18. 18. Interviewing 1. Know what you can and can’t ask! 2. Resume/application verification 3. Set of standardized questions a. Real dealership scenarios b. Attitudes/bias
  19. 19. Additional Interviews & References Don’t be hesitant to hold multiple interviews, especially for management positions References – the good and bad
  20. 20. Training Train for Results
  21. 21. What to Train 1. Automotive 2. Dealership 3. Position
  22. 22. Grade Your Sales Team What % of your sales staff can execute these exactly as you want in your store? Execute a dealership approved meet and greet? Ask an approved inoffensive qualifying credit question? Take a proper and complete credit application? Conduct a proper walk around of a vehicle that matches the customer’s ability to buy? Present a write-up (4 square) as per procedure? 83% avg 95 80 85 80 75
  23. 23. When to Train • Upon Hire • Ongoing • Daily (in store) • Weekly (in store) • Monthly (webinars, peer groups) • Annually (corporate, conferences, conventions)
  24. 24. Why Train To improve profits! To improve retention!
  25. 25. 5 Reason Employees Leave Employers 1. Job was not as expected 2. Compensation not as expected 3. Feeling undervalued or underappreciated 4. Lack of training/coaching 5. Boredom/ lack of challenge
  26. 26. The biggest benefit of training and retaining your people is … increased productivity, because well trained, tenured employees allow you to have fewer people to do the same amount of work!
  27. 27. Retaining Reduce Voluntary Turnover – Keep the Talent
  28. 28. 8 Ways to Retain Talent 1. Provide clear expectations 2. Set realistic goals 3. Provide opportunities for growth/reward 4. Recognize performance
  29. 29. 8 Ways to Retain Talent 5. Provide feedback 6. Share your passion and vision 7. Foster honest communication 8. Offer competitive compensation packages that your employees want
  30. 30. The New Plan Hire Right Train for Results Retain Talent
  31. 31. Build a HTR Plan Determine turnover rates • Store • Department • Position • Voluntary vs. Involuntary
  32. 32. Create focus for each area •Hiring •Training •Retention
  33. 33. Build a HTR Plan Determine how to execute •Current Staff vs. New Hire •Deadlines, Dates, Schedule •Identify Obstacles to Execution and Eliminate
  34. 34. Build a HTR Plan #1 Reason things don’t get accomplished … they never got started. #2 Reason … they didn’t have a deadline
  35. 35. Like what you saw? For more information on our Products & Services:  http://www.dealerstrong.com/ Thank You. 

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