An interesting article in the Sydney Morning Herald today.  In Sydney Australia, the car sales industry seems to have been dominated by snappily dressed, well-coiffed men since the horse and cart were put out to pasture. But the male domination of the car yard will soon end - at least for one local company. High-end retailer Trivett Cars has been granted an exemption from sex discrimination laws so that it can hire only saleswomen for its 22 dealerships in western Sydney and Melbourne. Trivett hopes that by inc...

I remember being told that I should seriously consider moving back to Australia if I truly thought I could sell cars on the Internet back in 1995, If you were a Clifford Stoll disciple you no doubt agreed, yet here we are 15 years later and how the world has changed. First I want you to read what Clifford thought in "95"... The Internet? Bah! http://www.newsweek.com/id/106554

Yet, has the attitude really changed in some of our dealerships...how many people do you know that have not embraced the viability of social media and how it should be used.

Social Media Marketing, what it basically comes down to for any size dealership is understanding what is really involved in launching a social strategy.

Success in social media requires some advance planning, as well as some fundamental shifts in marketers' attitudes toward online marketing. Following a few simple steps, a dealership can deliver a social media strategy that will provide a platform for refinement and success as we move...

Selling cars is not going to be any easier in 2009 than it was in 2008. However, even at the worst estimate, which seems to change weekly, there will be at least somewhere around 10,000,000 new retail vehicles sold this year. So which dealers and salespeople are going to get their fair share of the pie out there? January always brings some type of resolution for me, if I were still in the retail side of the business these would be mine:
• Commit to cleaning up your database. Have your database administrator or database vendor remove duplicate or dated information, appending contact and consumer details will open opportunities for additional business. Look at analyzing whom your best, and worst customers are, both sales and fixed operations. Segment the year by quarters and start communicating with those customers now. Look at orphan customers who used to frequent the service department but have not serviced their vehicle in over 9 months. Start contacting any financed customers...

Mirror Neurons, Spindle Cells, and Oscillators. What does this have to do with leadership and running your dealership better?

Recent research at the Harvard Business Review entitled Social Intelligence and the Biology of Leadership concludes that leaders can improve group performance by understanding the biology of empathy. (A sense of shared experience, including emotional and physical feelings, with someone or something other than oneself.)

It was recently discovered that our brains have "Mirror Neurons" that act as a mental "Wi-Fi," and allow us to navigate our social world. These cells become activated when others' behavior gives us cues into their mental/emotional state. The mirror neurons then create the same emotions within our own brains. "Collectively, these neurons create an instant sense of shared experience." And, their research found that successful leaders are highly adept at responding to these mirror neurons.

Literally, experiencing empathy alter...

I noticed recent Discussion Board postings about whether to brand your dealership or yourself.  It is an interesting discussion, particularly in our industry with the estimated employee turnover of 40%.   I started thinking about how this issue relates to improving dealership employee attrition.  And I think in most cases both the dealership and the individual should be branded, and this includes all departments that are customer facing.  Your customers should have an attachment to your dealership, and this means an attachment to your employees because they are a part of the dealership.  If they don't feel apart of the dealership, you're not managing well: either you're not creating a culture of inclusion or you hired the wrong person.  Customers (in most industries and especially ours) notice when their key contacts leave.  Vehicle purchases and even parts and service can involve a lot of money, and a lot of emotion.  When consumers develop trust with dealership personnel, th...

It is inevitable that you will lose employees. It's part of life. With the proper management, structure and hiring process, we do know that you can (and should) greatly reduce that loss.
That being said, now and then a good employee will search for greener pastures. When this happens, be sure to keep your wits about you. Don't make empty promises, offer unfair raises/promotions or beg them to stay.
You have to set a good example for the remaining employees and make sure to keep them in mind when you're negotiating to keep another employee from leaving. If you're tempted to offer them a better position or better pay, evaluate the position and pay they're currently at. How long have they been with the company? Are they being paid fairly? Do they have the ability to take on more responsibility, or do they really need more training?
Be fair to yourself, your other employees and the employee on the way out. Take time to think about your response and decide what that employ...

According to research from Vanderbilt University and Cornell University, low "behavioral integrity" erodes employee moral and intention to stay in a particular job. And just what is behavioral integrity? It's just a fancy way of saying the match (or lack of) between your words and your actions. If your behavior does not match what you say, your employees, at all levels, notice it and it has a strong negative impact.
We've touched on this before, and it's something that you need to be mindful of at all times. Their research of nearly 2,000 employees at over 100 work locations found, "a correlation between supervisors receiving low scores on behavioral integrity and line employees measuring low on trust, job satisfaction, contributions to the workplace, and intent to remain on the job. What’s more, low behavioral integrity tended to shape the culture of the entire workforce." Wow, that's pretty strong stuff!
Have you ever worked somewhere where your manager was always talkin...

Understanding employee needs and concerns while they’re in your employment is considerably more important that understanding why they leave. Exit surveys may have their place, but the best way to solve the problem of employee attrition is to keep current employees happy.

Focus groups, monthly surveys, and regular refreshers on company policy/goals/mission are all good ways to engage employees now. And they are much better than waiting till they’re walking out the door.

Services like SurveyMonkey.com are easily adaptable to your purposes. Write your employees a note about their importance and solicit their anonymous feedback with a customized survey.

It’s important to engage your employees. Consistently communicating your business’ position and your gratitude or concerns will help them to see you as an interested individual and not a cold and distant leader. Remember, communication is a two way street. Soliciting employee thoughts and feelings will not only h...

Employees leave jobs for all sorts of reasons. If a company experiences serious turnover, there’s a good chance that many employees are leaving for the same reason. Employers often try to employ exit surveys in hopes of locating the problem area; however, it’s rare that exit surveys really get to the bottom of a company’s problem. Employees and ex-employees alike fear retribution or “burned bridges” and are not likely to really express how they feel. Additionally, employees tend to be reluctant to speak with management about their concerns and discontent.

One way to encourage employee interaction in company-wide problem solving is to create a venue that allows employees to voice concerns to several representatives, with no names attached to issues raised. This allows employees to maintain some level of anonymity. Representatives are also able to voice concerns without claiming them necessarily as their own. You’re far more likely to get an accurate depiction of ...

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 s...

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 t...

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 giv...

A recent study from Vanderbilt University's Owen Graduate School of Management suggests that simply training good employees is not necessarily enough to keep them around. In fact, sometimes training (on its own) lead employees to leave companies as they become more valuable in the marketplace. All is not lost, however.

The study finds that employees who feel empowered are far more likely to stay with a company. When employees have a measure of autonomy and decision making power, they “buy in” or commit more fully to a company. Empowerment also includes reward or bonuses directly proportional to performance. Incentives and rewards help to keep employees motivated and on top of their game.

It’s important to strike a balance. Investing in employees without their return investment in your company will generate little reward. However, hiring good people, investing in them and empowering them fosters their commitment to you.
...

Just as the dawning of the "Internet Age" redefined the consumers ability to access information and become a more knowledgeable and confident shopper, another phenomenon is occurring 15 years later. Those same consumers, some of whom were not yet talking, let alone walking are writing about your products on blogs, editing your commercials on YouTube, defining who you are on Wikipedia and building groups of influence about you on social networking sites like FaceBook.

These are all elements of a social phenomenon, a groundswell that has created a permanent shift in the way the world works, some see it as a threat, others as an opportunity. Either way it is here now, and it it here to stay. It is a spontaneous movement of people using online tools to connect, take charge of their own experience, and get what they need.....information, support, ideas, products, and bargaining power - from each other. Its global, and its unstoppable! In my opinion is a tremendous opportunity to differen...

We’ve already established the importance of employee retention. Now let’s look at some practical ways to keep your best and brightest on board.

Giving good employees a measure of autonomy lets them know you trust them. When success is in large part an individual responsibility, individuals tend to step up to the plate. Although mentoring and training are important for all employees, letting competent individuals have ownership over their work is a great motivator. Help them create a plan of action based on their strengths, then step back and let them flourish. And ALWAYS reward a job well done.

Also make sure you regularly solicit feedback from employees. You should be informed on the overall feeling and culture at your dealership, and not just what management thinks. It’s also very important to find ways to incorporate that feedback into the culture. If employees feel they have voiced their opinions and their opinions are being ignored, they will be less motivated a...

It's obvious that dealers need to spend time cultivating customer relationships. We'velearned a lot about how to make customers happy and develop emotional buy in. We know the steps to creating lasting relationships between dealerships and consumers, but the piece of the puzzle that we talk about here is too often overlooked ;

Happy, long-term employees help create happy customers. Let's look in more depth at a couple of ways to retain employees and consequently save your dealership money.

Offer relevant training from the start One of the most effective ways to develop relationships with consumers is offering value. Offer value to your employees as well! If they see your dealership as a place to grow and learn, and are offered compensation for their progress, they'll begin to "buy in." If they see your dealership as their dealership, they will be much more convincing sales people and in a better position to develop relationships with customers.

Allow job expansion Even if y...

When I came to the States from Australia, its no surprise I needed a job, and like many of you I got in the car business by accident, little did I know it would end being my passion and a career. Since I was new in the country, my employment options were limited; but I had a background in Finance and Marketing so I took a job selling cars. It was a good time and I did well but I really was not into waiting on the lot to fight over the potential customers coming in the door.
Most sales consultants at the time (and lets face it, the industry has not changed much in this regard) sold cars to as many walk ins as they could and after the sale forgot about the customers so they could get back on the lot and get another. It sounds almost cliche-ish but I knew there was an easier way to get in front of these customers. I began to come to work early, with a pocket full of quarters, and spent my mornings buying coffee and getting to know the service customers. I had a great time building relati...