Loyalty, Retention and Key Insights in Forward Thinking Auto Retailing

Author David Silverman’s list, 11 Habits of the Worst Boss I Ever Had, is a collection of “demotivational lessons.” Frequent mind changing tops the list.

Again, when employees are left to feel uncertain about goals and expectations, you can be sure you will not get their best. No one feels comfortable in an atmosphere of doubt and insecurity. Mixed messages and mind changes not only confuse and disorient, they also lead to fear about job security. Any employee who is afraid they can’t do their job effectively and may be fired is probably going to look for alternative employment. In addition, any truly motivated person will be out the door the second the opportunity arises. Employers should prize motivation and drive. Nothing kills those attributes like a constantly changing or confusing message.

Silverman’s list is comprised primarily of various degrees of poor communication. As an employer, you should help your managers lay ground rules for communication. Be sure to clearly communicate your goals and, in turn, help your managers to clearly communicate those same goals. Explain the importance of a structure that works. Don’t enforce or encourage meetings for the sake of meetings or any other inflexible bulwark designed for good, but dedicated to a lack of productivity.

In general, employees are happy when they know what they’re working toward, and have the freedom to work toward, goals in the most effective way for them.

Check out Silverman’s complete list at:
http://discussionleader.hbsp.com/silverman/2008/07/the-flip-side-of-leadership.html.
Are you guilty of any of these leadership sins? Be honest…

A recent Harvard Business Review case study, entitled, “Why Are We Losing All Our Good People?” suggested that the blame often lies at the feet of management. If you discover that turnover in a particular department is common, take a good look at the missing employees’ manager. In the study, Anne Pringle of Microsoft explains that, “leaders (are) accountable for attracting and retaining key talent.”

Employee retention is too large a job for one individual. The dealership as a whole, more specifically the leadership, should make retention a goal. Immediate managers should have insight to individuals and the specific things those individuals value. If the loss of a valued employee is a surprise, you can bet that someone in leadership dropped the ball. Management should be in tune to employee needs, especially the employees directly under them.

Educate your management team. Help them to understand the dealership’s goals where retention is concerned. Empower them to be flexible with employees and be careful to hire management that understands your dealership’s position. It’s been said that employees don’t leave jobs, they leave managers. There is certainly truth to that, probably more than most of us take the time to realize.

Think about it… and the money your dealership loses every time you lose an employee.

Technorati Tags: employees, hiring, parts, recruiting, retention, sales, service

As mentioned previously, training and resources can potentially lead employees to leave companies as they increase in value. This tendency can be nipped in the bud with a little caution during the hiring process. If companies take care to hire teachable employees with a propensity to commit, and take the time create a favorable impression from the start, they will find that an investment in those employees will be very low risk.

Many of a company’s attrition issues are determined during the very early stages of their relationship with new employees. A study by Ipsos-Reid claims some 30% of employees plan to leave their job within two years. But, Corning Glass, the specialty glass and ceramics giant, found that employees who enjoyed a positive orientation to the company were 70% more likely to remain at their job for at least three years.

Employee retention starts with the interview. Choose your employees based on attitude and ability to learn. Be sure to continually give them the tools they need to succeed. Entrust them with some semblance of autonomy, the ability to participate in company wide decisions and opportunity to expand their skill sets, and kiss high employee attrition good-bye.

Technorati Tags: employee retention, hiring, turnover