Improving employee engagement is a vital initiative in dealerships today. As the market ebbs and flows, interest rates and inventories fluctuate, an agile team can help you maintain some consistency. Additionally, a recent Gallup State of the American Workforce study discovered that engagement was a key component of successful companies. In fact, businesses with engaged employees were 21% more profitable.

One of the key factors of employee engagement was coaching. According to Gallup, employees in today's workforce desire more ongoing conversations instead of a yearly performance review.

At first glance, this implies fewer formal discussions and more informal conversations. However, this is not the case. To coach correctly and provide ongoing feedback, you need to have formal systems in place. Let's delve into what I mean.

Quotas and Metrics

An employee must know what "good" looks like in your dealership. This requires you to define success with a list of quotas and metrics. A quota is a measure of success. For example, "Appointment Set %." A metric is the specific number you expect the employee to achieve within the quota. For instance, you could define 60% appointment set as world-class, or a five-star rating.

Mapping out these quotas and metrics is a valuable exercise for managers. You can define the attributes of an exemplary job role and determine what is needed to enhance performance in each quota. A coaching session with an employee is not an "ad-hoc" effort but a directed conversation designed to help them improve.

Measuring Actuals vs. Quotas

You can't identify performance gaps without a formal, clear set of quotas and metrics that define success. Employees need to know what "good" looks like. You need to establish processes and reporting from your CRM, etc., that capture actual performance within the quotas defined above. This clear data then paves the way for informal, ongoing conversations. Both parties know what needs improvement, and your coaching can be tailored to their specific needs.

Coaching your team is a powerful way to improve performance. You can identify gaps in performance and leverage andragogy by assigning relevant, contextual activities and training. Because it's relevant, the employee has a better chance of absorbing and applying the coaching.

A Formal Process for Coaching

Effective coaching requires a consistent process. For example, it may begin with a review of the quotas vs. actuals, followed by a conversation on what the employee wants to improve. This should be a conversation, not a preaching session. You are there to guide the employee, not dictate what you want them to do.

To create an environment conducive to this open two-way conversation, you should have a formal process in place. The employee shouldn't have to guess how the session will progress. They need to know that the coaching session has clear expectations.

Creating a formalized process with clear data can foster an environment where managers and employees can focus on development. When the employee drives this coaching session, they become more invested in their career growth, promoting engagement. This engagement is the "secret sauce" your dealership needs to weather any economic storm and become more profitable.