3 Tips to Attract and Retain Talent in Your Car Dealership
As the American economy continues to perform well, dealerships see growth as more consumers walk through their doors looking to buy a new car. Good economic times of course are great for the car business, but there is one downside to growth that dealerships can face: attracting and retaining talented employees.
The US unemployment rate is at an all-time low and as such, smart workers are looking around, weighing their options and considering if they should look for a better job. With dealerships hungry for talented workers, you may that your best employees decide to move on, or worse, get poached by your competitors.
To avoid losing your best workers, you must create an environment that is rewarding, positive, and offers your team room to grow. Here are 3 tips you can implement quickly to keep your team happy and motivated.
#1) Structure Compensation Plans to Include Larger Base Salaries. Traditionally dealership pay plans would focus on commission for both salespeople and mechanics. However today with millennials joining the workforce in greater numbers, dealerships should consider raising base salaries as a percentage of total compensation to create pay plans that are typically more attractive to millennial workers.
#2) Invest in Employee Training and Promote from Within. A successful employee who feels that they have reached as far as they can rise will often simply leave rather than asking for a promotion. Likewise someone who feels their career has stalled will likely look for new options. Dealerships can retain and grow talent by investing heavily in training in various forms including hiring outside trainers, buying self-study resources for their teams, and more. Furthermore, as you invest in training, be sure to show employees why the training matters by promoting from within wherever possible.
#3) Implement a Longevity Bonus. This is simple but effective and should be a best-practice for any dealership that wants to keep their top employees onboard. Any employee that stays with your dealership for more than 2 or 3 years should get a longevity bonus on top of their existing pay plan. This will show them that their tenure matters and that your dealership values their loyalty. This is one of the best and simplest ways to avoid losing employees to competitive dealerships.
These 3 tips should get you on a fast track to thinking about rewarding your team and retaining your top talent. Of course, these are just a few simple ideas that form a part of a larger philosophy surrounding organizational culture. For a broader perspective on HR strategies that create competitive advantage for your dealership, contact Max Zanan today.