When it comes to technology systems dealers really need to be in-the-know, not just assume the conversion numbers they're seeing are correct. A recent example is a dealer group that assumed their appraisal win ratio was converting at 24 to 27 percent. After actually including and tracking "EACH & EVERY Appraisal" their win ration was found to be only 16 to 18 percent. Then by using the appraisal systems analytics and reporting tools they were able to tighten up their online and in-store appraisal processes and move the win ratio up to an actual 24 to 27 percent. Simple adjustment but a big impact on the bottom line.
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I feel like having a positive outlook and attitude are key factors for developing good habits. I try to be upbeat and happy even when I want to throw a computer. Positive attitudes are just as contagious as negative.
@Tim_Deherty We put a lot of our forms and examples on DrivingSales.com blogs. I'm sharing a link with you to one of the homework assignments that our Master Class participants use to build scorecards for different job roles. They're at the bottom of the blog. You should be able to download worksheets, examples, and benchmarks. Once you take a look at the assets provided, let me know if you would like to register for a FREE Master Class, starting July 22. We will give you step-by-step instructions on how to build scorecards and implement the Performance Review process in your organization. You will have access to our platform that will allow you to implement and manage this process in your organization. We'll be with you over the course of 8 weeks. By the time you're done with the Master Class, your team will have had 2 Performance Reviews, and you will have 3 Performance Reviews to let us and you know if you have mastered the process. As a bonus, there are 4 other processes that you will be learning: Career Pathing, Training and Development, Task and Project Management, and New-Hire Orientation. Feel free to call me if you have questions or concerns. 801.403.8092
@Jason_Volny Do you have a forms library? I'm curious to see those, first. Thanks!
@Sandy, you raise a good question/concern. I should have clarified that more in the article. Each state has its own "laws" pertaining to the "salary" amount should the employee be salaried. In that, if the employee is not paid a certain annual amount - to your point - it can land you (the dealer) in hot water. The main premise for this article was to outline the notion of "paying hourly" does not always make sense. If you paid enough salary wise it can be mutually beneficial. Now, where I have a different perspective is "paying" an hourly rate or salary without any sort of commission. Depending on the "commission" plan, someone who is highly motivated is not "capped," and can earn more depending on his/her performance. Where dealers struggle with this pay model, however, is having an overall lack of consistency when it comes to the "processes" behind the plans, and/or "total" opportunities for the BDC agent to earn commission on. Namely, if a dealer - let's say - cuts their ad spend by "X" amount, it can and will have an impact on total "lead volume." And if the BDC Agent has to hit "X" amount of "shown"/"sold" appointments to hit their commission, this could cause for mutual frustration. Especially considering what the average set, show, and sold rates are, no?
This is an interesting article. I would be remiss if I didn't comment my warning regarding the advice about pay plan structure for BDC and urge any dealer who is looking at this to consult with your HR professional and perhaps labor attorney. Why? Seems simple right? A common misconception that just putting someone on "salary" means that you don't have to pay them overtime. This simply isn't true. The overtime exemptions are very specific and BDC does not fall into one of those exemptions. Therefore BDC reps would be eligible for overtime. With that in mind--the overtime calculation is often misunderstood as well and any commissions, bonus' etc MUST be added into the calculation for "regular hourly rate". Yes, you read that correctly. A wage and hour audit by the DOL is no fun and can cause an employer to loss exemptions they ARE qualified for sometimes. Another alternative is to create a pay plan based on average total income and pay that hourly rate, no bonus/commission--build in increases based on performance. OR keep the commission and do not allow overtime. It was actually a wage and hour suit 20 years ago that was the defining moment in my career. The dealer lost because of lack of knowledge not bad intent. #protectingprofits
@Shaun and Heather. I apologize for the late response to this one. By now, I hope you participated in the Career-Pathing live training module and have learned now to break up the training into bite-size pieces for your employees. Building a training schedule is to help you identify organizational gaps and train the whole team. Look at your department as a whole and ask yourself, where do I see weakness and opportunity in the four factors: process, skills, product knowledge, and temperament?