Human Capital

Ron Henson
What is your annual turnover rate for sales consultants at your dealership? 10%? 20%? 30%? Higher?
Tony Wood
Lately? We're losing one or more a month. I attribute it to poor hiring techniques. I've only had the opportunity to interview 5 people for sales (to help out). I advised against 3, and recommended 2. The two I recommended are the best green peas we have, one man and one woman. They're go getters and intelligent. Even without sales experience they've averaged just under 10 cars a month for their first 3 months. I have no doubt that they'll be 12-15 car Sales Professionals within a year.
Ron Henson
@Tony With that kind of track record it sounds like you should be doing all of the hiring!
Tony Wood
I think the problem lies in the fact that the people we have doing the interviews regularly have zero interviewing experience. Due to my past corporate experience, I've literally done thousands of interviews in my career (job fairs, staffing pushes, etc). Furthermore, I tout the rewards and benefits that this job can bring, but I also don't sugar coat the potential struggles and challenges they will face. I want to make sure the candidate I'm hiring has thick skin and can stand up to the obstacles they're inevitably going to be facing. Essentially, part of my interview process is trying to scare them out of taking the job. They get a lot of points with me if they don't back down. I haven't interviewed anyone for them for a bit, and I think it's because I'm the only one that will actually recommend not hiring. All of our other managers that interview say, "this one's worth a shot." It might be nice to give someone a shot, but the fact is that not everyone is cut out for this business. Unfortunately some people are too scared to make that determination.
Chris Reed
Tony - it would be great if you could share your recommendations on hiring practices in a post on the community. I have had some experience in corporate hiring as well and learned there that the standard, unstructured, interview was basically useless in predicting who would succeed and who would fail. It sounds like you bring structure to the process and are clear in setting expectations about the job. Can you share some tips and the results it has produced for you?
Tony Wood
Oh my Chris, you're asking me to commit, haha. I'll be able to do that. I agree that unstructured interviews are useless. Partially because receiving answers to the same questions over multiple interviews can actually help you build a baseline expectation for responses from successful individuals. I'll find some time to post one up soon.

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