How do you retain and recognize your top employees?

Kristen Tepper

Employee retention and recognition tactics are two things every business struggle with, including dealerships, where being a car salesperson seems less and less like a career to millennials and more like a "until the next best thing" situation. What processes do you have in place to ensure your employees feel appreciated and committed to your company?

After all - studies show that when put your employees well-being at the forefront of your efforts you will reap immense financial gains. Employees who feel appreciate are proven to be more productivepositive and innovative in their day-to-day efforts. And an astounding 69% of employees would work harder if they felt their efforts were better appreciated.” (socialcast) furthermore, organizations with the most sophisticated recognition practices are 12 times more likely to have strong business outcomes. (Bersin by Deloitte, The State of Employee Recognition, 2012) -

Want more facts? I just wrote a new blog - 13 Eye-Opening Employee Recognition and Rewards Facts. Check it out and let me know what you think?!

Maddy Low

When I was at a dealership they had an employee of the month program, and everyone nominated their coworkers so it was chosen by the people who were working side by side every day! The winners from each dealership every month were put in a drawing and one winner from each dealership got to go to an all-expenses paid vacation with their spouse or a friend! So great! 

mark rask

We mainly award longevity and performance 

Kristen Tepper

@mark that's awesome! How do you guys keep track of it and what type of awards do you give out?

Joe Henry

H.R. studies have shown over and over that a defined career path for an employee keeps them engaged and retains them more than any other factor. Most dealerships can't provide all personnel a career path because of department structure. So the 2nd most effective is a retention bonus. One of my past dealers (that I worked for) and myself, put together the following retention plan for Techs and then we adapted it to all departments:

Take the Techs total hours turned in a quarter, set aside an additional $X per hour they have turned that quarter. Repeat each quarter. After 1 year and 1 additional quarter, the Tech is eligible for his FIRST quarter bonus. Each quarter after the Tech gets the next quarter. However, Tech leaves …. waaaa waaaa, forfeits the bonus. I can tell you from experience, when a Tech gave me the notice and I reminded them of leaving $5k+ on the table, that flipped them faster than a Pro Wrestler in WWE.

Example using assumptions: Let’s say Tech turns 48 flat rate hours every week, we will use $2.25 per hour retention bonus, 52 weeks a year = 13 weeks in a quarter year, $2.25 x 48 hours = $108 each week, x 13 weeks (amount of weeks in a quarter) = $1,404 per quarter. After a year, if they leave, bye bye to $5,616 Bonus Money!!!!

 

Mike Cartwright

Nice article, Kristen. Thank you for the statistics. Besides rewards and recognition, our company promotes work-life balance. We create a lot of events and activities where we can just bond and relax. We also give employees the time to attend training about graphic design, leadership, and more.

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