Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
Jason Volny

Jason Volny National Training Manager

Exclusive Blog Posts

Values: Consistency

Values: Consistency

We are well-known for understanding the value of advertising – how much something costs versus how much something is worth. Additionally, we also…

Top Reasons to Have Admin Access to Your Employees Dealer Social Media Pages

Top Reasons to Have Admin Access to Your Employees Dealer Social Media Pages

On the surface, having your sales consultants promoting your brand on social media seems like a win-win. The idea that your dealership is getting that addi…

Put Your Dealer Advantage to Work in Service

Put Your Dealer Advantage to Work in Service

According to the CallSource Automotive Inbound Call Data Report, the service department phone is a missed opportunity. Over the past four years, 60 per…

Dealer Name Bidding Amplification Strategy

Dealer Name Bidding Amplification Strategy

Jim Flint, CEO and Founder of Local Search Group, discusses how to keep competitors from bidding on your dealer name by employing intelligent amplification…

Is Your Dealership Prepared to Handle These Conversation Topics?

Is Your Dealership Prepared to Handle These Conversation Topics?

Messaging is quickly becoming integrated into the communication channels of dealerships.  It’s quick and efficient, and customers can interact a…

Employee Compensation Process

Part 3 of a 3 part series on:

Implementing New Products and Processes in your Dealership.

Employee Compensation Process

This is the most important phase of the strategy. Unless there is some sort of compensation variance attached to the participation, completion, and reporting it will be very hard to get this off the ground and make it sustainable. Most of our managers only get paid for high sales, high gross, and high CSI. What do we have them report on? Sales, gross, and CSI. If you want them to focus on employee development, a portion of their variable pay must be tied to its execution. You can pay them on the execution of processes, such as course completion, task completion, performance reviews, or career management. Or,  Another option, pay them on the outcomes that delivered, such as, lowering turnover, employee engagement, or the speed at which employees get up to exemplary performance levels. Or, you can choose to pay them on both. No matter what you choose, choose something, otherwise, it will not work. It will just become another great underutilized tool in your managers tool belt.

For employees, it’s no different. If you only pay them for selling cars or writing ROs, that’s the only thing they will fixate on. Nothing wrong with focusing on sales, however, we all know, the more we train and grow, the better we all become. However, unless training and development is a part of someones payplan, it will go on the back burner.

Most of you will be familiar with the concept of a carrot or a stick, the metaphor that behavior is encouraged through either positive reinforcement (carrot) or negative reinforcement (stick). Try to avoid the stick as much as you can, however, if someone is not following your strategy to implement or follow the processes, even though it’s part of their pay plan, there must be some repercussion. This is where your basic management skills will come into play. For your manager, it may just take a stern talking to and making them understand the way it makes you feel, why it’s important for your organization and what is expected of them going forward. I’ve seen some managers not allow employees to talk to customers until their training is complete. No matter what you decide to do, your people just need to know that it is important to your growth, their growth, and the growth of the organization as a whole. Showing that you are paying attention will go a long way in retaining rockstar employees.

 

 Unlock all of the community & features  Join Now