Before I recap this breakout session at this year’s DrivingSales Executive Summit, let me pose a question. What would you say is your dealership’s most important asset?
The theme of this year’s DSES is people, and we saw that with the keynote topics this year….but we need something actionable that we can take home to our dealerships this week.
- Grow performance
- Engage employees
- Accelerate Advancement
- Reduce Turnover
If you invest into your people, you will have a competitive advantage.
Dealers spend close to $60 million on vendor products and services…but in order to get the value out of them, your people need to be optimized.
Are they ready to execute on your investment?
Why do we have hight turnover?
Your new employees look at the veterans, and there’s a huge chasm between where they are, and where they should be.
Costco - If you look at this company, the idea for paying to shop at a store was crazy at the beginning, but now if you compare Costco and Sam’s Club today, they’re completely different structures, and it all comes down to training employees.
Who has the higher labor expense? Costco.
Who has the higher labor cost? Sam’s Club.
Costco spends more than Sam’s Club on developing their employees, and yet has a lower turnover rate.
What is the true cost of turnover? The auto industry is at 70% turnover, which is $45,000 - 75,000 Cost Per Turnover. (Lost business) And that’s not including service, referrals lost, etc. (Acc’d to NADA)
Enterprise rent a car - They pay on average 20% less than their competitors, and they ask for a college degree. Yet they are successful and have lower turnover than their competitors by giving their employees a roadmap to success.
Does your dealership have a process to develop your teams? This is something that is critical in the industry, yet most dealerships aren't spending time mapping out employee career paths.
There are 4 Factors to sales achievement: