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Bart Wilson

Bart Wilson Director of Operations, Media

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HCM is a Competitive Advantage

 

As the years progress, it’s been interesting to watch the growth in the conversation around human capital management. It hasn’t been that long since HCM was an acronym that wouldn’t mean anything to a dealership, but it is becoming commonplace in today’s environment. In fact, NADA 2020 had multiple sessions around the topic. 

 In order to compete today, there needs to be an emphasis on the customer experience. This isn’t new. In fact, we’ve been discussing it at the DrivingSales Executive Summit for years. Ultimately, customer experience is the differentiator that sets your store apart from the one down the street. We can’t compete on price anymore.

 What is becoming apparent, however, is how an organization needs to work on their employee experience in order to build a quality customer experience. Dealers that struggle with turnover and poor performance won’t be able to deliver an experience that customers expect in retail today. You need a higher caliber of employee to deliver a better customer experience.

 In addition, as we approached DSES last year, I was looking at Carvana as being the big disrupter. After all, they are a platform play that is leveraging technology to streamline the process. As the dumpster fire that is 2020 progressed, the disruption didn’t come from Carvana, but came from COVID. It forced dealerships to look at their operations in a different light. We had to evolve in order to deliver a vehicle, let alone a customer experience.

 Which brings us to today. I’ve talked to dealers all over the US and Canada, and they are telling me their sales departments are experiencing tremendous profitability, and one of the reasons is that they are doing more with less. Less inventory and less staff. Most haven’t hired back to pre-COVID levels. They are running extremely efficiently. Obviously, vehicle availability has something to do with it as well.

 Here is the challenge. Can you develop a high-performing dealership organization that can deliver a quality customer experience and does it more efficiently? How do you find, acquire, and develop this talent inside of your organization?

This year at DSES, we have two 90-day Master Certifications around employee performance and retention. In addition, there are multiple sessions on human capital management. We invite you to attend and learn what you need to know to implement a strong HCM strategy in your dealership.

HCM isn’t going away. It will only gain more traction as we move forward. The competitive advantage can be captured by those who invest in and implement strategies to harness it in their dealerships today. Eventually, it will become a cost of doing business. But right now, it can be a real differentiator.

Don't miss DSES. We won't be able to meet in person, but we can still get together and learn from experts. You can register here.

 

John Larsen

One of the keys to delivering this is finding the sweet spot for employee scheduling where they have enough work to keep them engaged and productive, but not so much that they are unable to keep up and customer wait times creep up. You want to satisfy the needs of customers, employees, and your business.

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