Auto/Mate Dealership Systems
Auto/Mate Receives a “Top Workplaces” Award for the Fifth Consecutive Year from The Times-Union
Albany, N.Y. – April 19th, 2016 – Auto/Mate Dealership Systems announced today that it has received a "Top Workplaces" award from the Albany Times-Union for the fifth consecutive year. Auto/Mate ranked as a "Top Workplace" in the mid-size business category in New York's capital region.
"Being a top workplace is very important to us because your customers will never love your company unless your employees love your company, and we want to keep both groups happy," said Mike Esposito, President and CEO of Auto/Mate. "It has also been helpful in our employee recruitment efforts, which everyone knows can be challenging."
The Top Workplaces are determined based solely on employee feedback. The employee surveys are conducted by WorkplaceDynamics LLC, a leading research firm on organizational health and employee engagement. Companies were selected based on several criteria, including pay and benefits packages and organizational health factors, which measure how well employees are working together toward a common cause.
Auto/Mate’s exceptional benefits for its employees include:
- Company events and outings
- Involvement in and sponsorship of community events
- Company sponsored wellness programs with hosted speakers
- Body/Shop employee gym
- Employee discounts
- Paid volunteer day
- Company-wide contests and challenges (i.e. best-decorated cubicle award during the holidays)
- Food trucks and hosted breakfasts and lunches
Auto/Mate is currently seeking dealership professionals with experience in accounting, F&I, parts and service. Professionals will travel the country to help provide Auto/Mate's customers with exceptional levels of training and support.
"I made the transition to Auto/Mate and I love it because I work in a family and team-oriented setting," said John Carter, Accounting Support Specialist. "I also love the stress free environment, and I still get to experience the dealership atmosphere during my work travels."
Auto/Mate has also been named a Best Places to Work in New York’s Capital Region by the Albany Business Review journal six years in a row; and has ranked consistently as a highest-rated or top-rated DMS vendor in the DrivingSales Dealer Satisfaction Awards.
Esposito recently presented his workshop "Create a Top Workplace to Increase Customer Loyalty" at the 2016 NADA Convention & Expo in Las Vegas, NV.
Auto dealers interested in learning how to turn their dealership into a "Top Workplace" can send a request to have Esposito speak at their local ADA chapter or 20 Group by emailing media@automate.com.
About Auto/Mate
Auto/Mate Dealership Systems is a leading provider of dealership management system (DMS) software to retail automotive dealerships, typically saving dealers thousands of dollars per month from their current provider. Our Automotive Management Productivity Suite (AMPS) is a user-friendly, feature-rich DMS in use by more than 1,200 auto dealers nationwide. Auto/Mate has received DrivingSales Dealer Satisfaction Awards in 2012, 2013, 2014 and 2015.
Auto/Mate’s employees have more than 940 years of combined experience working in franchised auto dealerships, the foundation of its “Designed By Car People For Car PeopleTM” slogan. Auto/Mate is committed to winning its customers’ business each and every month with no long-term contracts and free software upgrades. For more information follow us on Twitter @AutoMateDMS and subscribe to our blog at www.automate.com/blog.
Auto/Mate Dealership Systems
Auto/Mate Announces Dates for its 2016 National Customer User Summit
Albany, N.Y. – April 11th, 2016 – Auto/Mate Dealership Systems today announced dates for its national customer User Summit, anticipated to be the largest event to date with more than 200 Auto/Mate customers expected in attendance. The 2016 User Summit (#AMUserSummit) will be held at the Hilton Chicago/Oak Brook Hills Resort & Conference Center from September 19th through September 21st. This year's summit will feature two and a half days of product enhancements, best practices, industry speakers and exhibitors.
"When we first started our user summits we had no idea how popular they would be with our customers, and every year the event has grown," said Mike Esposito, President and CEO of Auto/Mate Dealership Systems. "Our goal is to make the time as productive as possible from an educational standpoint, but also to create a relaxed and fun atmosphere where people can network and have a lot of face-time with their fellow dealer peers as well as our team of executives and technical staff."
There is no charge for Auto/Mate customers to attend the event, which includes a hosted happy hour and dinner, as well as daily breakfasts and lunches. In 2015, over 100 Auto/Mate customers attended the User Summit and ten industry vendors exhibited.
For the first time this year Auto/Mate is issuing a Call for Speakers to Open/Mate and third-party integration partners, as well as to industry vendors and consultants. Speaker benefits include exposure to 200+ decision makers, complimentary registration, and a guest blog opportunity on Auto/Mate's blog, DMS Central. The deadline for speakers to apply is Monday, April 18th. More information can be found at http://www.automate.com/speakers
Additionally, Auto/Mate's User Summit has sponsorship and exhibitor opportunities for industry partners and vendors. Benefits of sponsorship include online promotion, pre- and post-show email promotions and special email campaign, networking at the Happy Hour pep rally and a raffle prize game that encourages attendees to visit all booths. More information about sponsorship opportunities can be found at http://www.automate.com/sponsor-info/
Auto/Mate's national User Summit is geared toward dealership executives and managers who want to learn more about Auto/Mate's DMS features and capabilities. Highlights include:
- Introduction: Learn Auto/Mate's philosophy on how we do business differently and what our future plans are, from Mike Esposito.
- New Feature Announcements: Auto/Mate's software development and product knowledge experts will reveal in-depth features of our recently updated accounting module and brand new payroll system, designed to streamline procedures and shave hours off of routine office processes.
- Rockin' 101 with Ken Rock: High-level feature overview of every module in Auto/Mate's Automotive Management Productivity Suite (AMPS) dealership management system.
- Break Out Sessions: Each session covers a different module/department, where customers will receive tutorials and time-saving tips and tricks, featuring Auto/Mate's advanced tech support "Go Team"
- Town Hall: Customers can ask Auto/Mate's executives and technical experts questions and discuss ideas in an open forum
- Industry Speakers: For the first time in 2016 Auto/Mate is opening the floor to vendor partners to share industry best practices in educational workshops
- Networking: Attendees will have the opportunity to network with peers, Open/Mate partners and other vendors.
"Auto/Mate's User Summit is a great way for dealers to see coming attractions for their DMS," said Mark Everly, Controller with the Donley Auto Group in Ohio. "The summit is a wealth of information not only from Auto/Mate staff, but also from the sponsor vendors that take part in the summit. I would highly recommend that dealers and their managers take part in a user summit...the time invested is well worth it."
For more information visit www.automate.com/usersummit or contact Jessica Joralemon, Manager of Events and Marketing Communications, at usersummit@automate.com, or 877-340-2677.
About Auto/Mate
Auto/Mate Dealership Systems is a leading provider of dealership management system (DMS) software to retail automotive dealerships, typically saving dealers thousands of dollars per month from their current provider. Our Automotive Management Productivity Suite (AMPS) is a user-friendly, feature-rich DMS in use by more than 1,200 auto dealers nationwide. Auto/Mate has received DrivingSales Dealer Satisfaction Awards in 2012, 2013, 2014 and 2015.
Auto/Mate’s employees have more than 940 years of combined experience working in franchised auto dealerships, the foundation of its “Designed By Car People For Car PeopleTM” slogan. Auto/Mate is committed to winning its customers’ business each and every month with no long-term contracts and free software upgrades. For more information follow us on Twitter @AutoMateDMS and subscribe to our blog at www.automate.com/blog.
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Auto/Mate Dealership Systems
Auto/Mate Introduces New Streamlined and Intuitive Payroll Application for Auto Dealerships
Albany, N.Y. – March 22nd, 2016 – Auto/Mate Dealership Systems today introduced a completely redesigned payroll application for auto dealers, located within the Accounting Suite of its dealership management system (DMS). The new payroll application includes a host of new features that streamline and expedite the payroll process.
"We asked our customers and prospects what their biggest challenges were when they process payroll, then set about to build a brand new payroll application that would solve those challenges," said Mike Esposito, President and CEO of Auto/Mate Dealership Systems. "After two solid years in development, we are incredibly proud of how intuitive and fast this payroll app is. As always with our upgrades, our dealership clients will get the new payroll application for free."
Auto/Mate's new payroll application includes the following features:
Automated State and Federal Tax Tables
Auto/Mate's Automotive Management Productivity Suite (AMPS) maintains all state and federal tax tables automatically. At the beginning of every calendar year, AMPS automatically updates all rates so the correct amount is withheld from each paycheck, in accordance with local law.
Predefined Setups
Office personnel can predefine setups for various types of payroll that are commonly run; whether weekly, monthly, bonus checks and more. Deductions, exclusions, liabilities and tax rates can all be assigned on a per employee basis.
"Creating the setups requires a little time up front, but once the setups are established it make running the payroll a breeze," said Esposito. "The app is very flexible, giving prompts to help staff create setups for every possible scenario."
The ability to predefine setups expedites payroll processing by making it a simple one-step, one-screen process. Office personnel can view a list of employees in a left sidebar panel, and when they click on an employee's name the payroll details appear on the right side of the screen. New data can be entered on the same screen, and changes are reflected immediately in the details screen.
A print preview of each paycheck can also be viewed from within the screen, and a PDF version of every paycheck is archived into every employee's file.
On-the-Fly Deposit Changes
Auto/Mate's new payroll app makes it easy to make changes to deposits on the fly. Many direct deposit employees have several bank accounts and direct a percentage of each paycheck to be deposited into each account. The new payroll app supports direct deposit splits into 15 different bank accounts.
In addition, it's simple to create live checks with partial direct deposit, or direct deposit with partial live checks. Changes can be made on the fly based on last-minute employee requests, with little effort required for the accounting staff.
Increased Security
Auto/Mate's new payroll application includes built-in checks and balances for increased security. The accounting office often allows several employees and other departments to have access to the payroll system. Now functions within the system can be limited and defined on a per user basis.
For instance, the office manager may want to give only one or two specific people permission to add new employees to the system, access the general ledger, or approve the payroll.
Validation Tools
Occasionally errors are made when running payroll, such as when an earnings code is missing a GL account number, or an extra digit is added to a paycheck. Auto/Mate's payroll application allows parameters to be set up for each employee so the system will intuitively sense errors.
Once the payroll is ready to run, the user simply hits the "Validate" button, the system checks for errors, identifies the location and allows the user to make changes right in the screen, so they don't have to slog through multiple screens and steps to correct the error and repeat the entire process.
To see a demo of Auto/Mate's new payroll application, stop by Booth #1853C at the 2016 NADA Convention & Expo. Make an appointment here: http://www.automate.com/nada
For more information visit http://www.automate.com/DMS or call Auto/Mate at 518-371-4331.
About Auto/Mate
Auto/Mate Dealership Systems is a leading provider of dealership management system (DMS) software to retail automotive dealerships, typically saving dealers thousands of dollars per month from their current provider. Our Automotive Management Productivity Suite (AMPS) is a user-friendly, feature-rich DMS in use by more than 1,200 auto dealers nationwide. Auto/Mate has received DrivingSales Dealer Satisfaction Awards in 2012, 2013, 2014 and 2015.
Auto/Mate’s employees have more than 940 years of combined experience working in franchised auto dealerships, the foundation of its “Designed By Car People For Car PeopleTM” slogan. Auto/Mate is committed to winning its customers’ business each and every month with no long-term contracts and free software upgrades. For more information follow us on Twitter @AutoMateDMS and subscribe to our blog at www.automate.com/blog.
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Auto/Mate Dealership Systems
Auto/Mate Announces DMS Accounting Suite Updates, Improving Productivity for Dealership Personnel
Albany, N.Y. – March 14th, 2016 – Auto/Mate Dealership Systems today announced new features in its dealership management system (DMS) Accounting Suite. The updates are designed to streamline processes that typically involve countless hours of labor by accounting personnel. New features include inquiry screen data entry, automated inter-company accounts payable, automated inter-company general journal postings and cash receipt templates.
"A common problem with DMS accounting suites is that the end user is required to navigate through many screens in order to access, enter and change information," said Mike Esposito, President and CEO of Auto/Mate. "Our updates make it possible for a user to access everything from a single menu, which greatly reduces the amount of time it takes to accomplish certain tasks."
The following updates were made to the Automotive Management Productivity Suite (AMPS) Accounting Suite:
Inquiry Screen Data Entry. The inquiry screen is an often-used feature in dealership accounting systems. Personnel use the inquiry screen to research and drill down into cash accounts, expenses and more, as well as to view schedule details and specific transactions. Now users have the ability to make data adjustments right from the inquiry screen. No longer do they have to back out of the screen and perform a separate function to enter or change data.
Users can also do multi-G/L inquires within one company or multiple; as well as build accounting set-ups that allow the user to have predefined sets of accounts they look up regularly.
"The feedback from our customers who have tested this feature is that it's a huge time-saver and they absolutely love it," said Esposito. "Now they can live and work within that one screen instead of having to navigate back and forth between different parts of the system."
Automated Inter-Company Accounts Payable. This new feature gives users the ability to automatically post expenses across multiple companies or accounts, eliminating the need to manually divide and post individual expenses. For example, a dealer group with multiple stores might have each store pay a percentage of the monthly electric bill. Previously, accounting personnel would have to manually figure the percentage amount, then log into each company's account to enter the amount due in accounts payable.
"A staff member in an eight-store auto group told us that to reconcile all the inter-company accounts took her an average of two to three days every month," said Esposito. "Once we set up the system to figure and post all these expenses automatically, her time spent reconciling inter-company accounts was reduced from three days to under two hours every month."
Automated Inter-Company General Journal Postings. This new feature allows inventory to be moved between companies without having to transfer the inventory manually. For example, if Store A wants to sell a car in Store B's inventory, previously Store B would have to first "sell" the vehicle to Store A. This would require a salesperson to generate a deal and the accounting personnel to manually enter several transactions. Now this type of inventory transfer can be completed with a simple journal entry.
"It's not uncommon for an auto group to have an 800-line journal entry to reconcile at the end of every month, which can take hours if not days to complete," said Esposito. "Automating journal entries virtually eliminates the need to create dozens of manual transactions along with the need to reconcile them."
Cash-Receipt Templates. For non-accounting personnel, entering cash receipts into the accounting system can be challenging if they don't know how or where to post everything. This creates extra work for accounting personnel because they must double-check all cash receipts, spend time correcting errors and assign receipts to the correct accounts.
Auto/Mate now allows the accounting office to create user-defined cash receipt templates for each individual or role in the dealership. For example, a sales person typically receives payments for a pre-defined list of circumstances, such as a down payment for a vehicle. Accounting personnel can create a cash receipt template for a salesperson that gives them one or two options for how they can post that type of receipt into the system. Every staff member in the dealership can have their own specific template that defines where and how they can post receipts, virtually eliminating posting errors.
The updates also allow accounting personnel to automatically generate a deposit slip based on cash receipts just added to the system. On a Monday morning or after a holiday, this can save a significant amount of time compared with having to manually write all cash receipts onto a deposit slip before heading to the bank.
To see a demo of Auto/Mate's accounting suite, stop by Booth #1853C at the 2016 NADA Convention & Expo. Make an appointment here: http://www.automate.com/nada
For more information on Auto/Mate's Accounting Suite, visit http://www.automate.com/DMS or call Auto/Mate at 518-371-4331.
About Auto/Mate
Auto/Mate Dealership Systems is a leading provider of dealership management system (DMS) software to retail automotive dealerships, typically saving dealers thousands of dollars per month from their current provider. Our Automotive Management Productivity Suite (AMPS) is a user-friendly, feature-rich DMS in use by more than 1,200 auto dealers nationwide. Auto/Mate has received DrivingSales Dealer Satisfaction Awards in 2012, 2013, 2014 and 2015.
Auto/Mate’s employees have more than 940 years of combined experience working in franchised auto dealerships, the foundation of its “Designed By Car People For Car PeopleTM” slogan. Auto/Mate is committed to winning its customers’ business each and every month with no long-term contracts and free software upgrades. For more information follow us on Twitter @AutoMateDMS and subscribe to our blog at www.automate.com/blog.
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Auto/Mate Dealership Systems
What's Your Definition of Success?
How do you define success: a financial goal, peer recognition or a title or position? Most people think of success in terms of their personal success, but businesses can also be successful.
How do you define whether your dealership is successful? Is it revenue goals, sales volume, the number of positive online reviews you have, or whether your employees are happy?
Without a clear definition of what success means for you in your personal life or for your business, success is impossible to achieve.
In the book 7 Habits of Highly Effective People, Steven Covey recommends starting with the end in mind.
One way to define your personal success is to start with your funeral or memorial service in mind. How many people do you want there? What do you want them to say about you? To determine what's most important in life, you could literally write your own eulogy.
To define your dealership's success, look at your exit or succession planning. Do you plan to sell the business or have a relative take it over? What kind of business do you want it to be at that point?
When we define success purely in financial terms, it seems kind of hollow. At your memorial service, do you want people to talk about how rich you were, but then have nothing else nice to say about you?
When you sell or turn over the management of your dealership to someone else, the same concept applies. Sure, a healthy balance sheet is a nice accomplishment. But what else are you proud of? What is your legacy as a leader that you want to leave?
Successful companies are much more than the sum of their balance sheets. When you look at the most successful companies, they tend to share the following traits:
- Successful companies have loyal customers. Loyalty starts with great customer service, but to retain loyalty your dealership must be perceived as trustworthy. To earn loyalty from customers, your dealership must be loyal and honest to your customers.
- Successful companies are ranked as top places to work. When a leader's mission is to make their employees happy, an amazing thing happens. Happy employees take better care of their customers, increasing customer loyalty and retention rates. Also companies that are on the "Best Places to Work" lists attract and retain the best talent.
- Successful companies have values. Your dealership should have an inspiring mission statement and a list of core values that defines how decisions are made in that organization. It's important that once your values are established, that leadership "walks the talk" of those values.
- Successful companies have long-term goals. The best leaders make decisions with the long-term consequences in mind. Sometimes, this means suffering a short-term setback.
- Successful companies are innovative. Great leaders encourage managers and employees to think outside the box. Instead of saying, "That's the way things have always been done," instead ask, "Can you think of a better way to do it?" I guarantee your current employees have all the resources to solve any problem you have. Not only that, but they'll be thrilled to come up with solutions, if they are only asked.
To build a successful business, it's important to first define what success is to you. Then, break those goals down into actionable steps.
What traits do you think the most successful companies share?
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Auto/Mate Dealership Systems
How to Create Work-Life Balance for Happy Employees and Happy Customers
Studies show that one of the best ways for companies to become more profitable is to have engaged employees. An engaged employee is defined as having high levels of job satisfaction as well as overall happiness. One of the keys to having happy employees is to create an environment that encourages a work-life balance.
Imagine a customer who comes in to buy a car, or brings their car in to be serviced at your dealership. Do they encounter a salesperson or service advisor who is energetic, happy and customer-focused? Or, do they encounter someone who is burned out, frazzled and resentful?
Given a choice, customers choose to do business with people they like and trust, and perhaps even have something in common with. If your employees don't have time for a life outside of work, they're not going to have much in common with anyone.
Setting an expectation that all employees must step up and do "whatever it takes" is not bad, as long as it's occasional. But if the expectation is there all the time, with no consideration for the toll it's taking on employees, chances are your dealership has a high employee turnover rate and a low customer retention rate.
Many employees don't feel like they can set boundaries to have a healthy work-life balance, so it's up to the dealership principals and managers to develop this initiative and culture. Here are some ideas that can help:
Spring for Lunch. Are there certain employees who routinely skip their lunch breaks when things get busy? Reach out and encourage them to take a break. If they don't mind or if it's not possible, show your appreciation by providing them with an occasional lunch. It's difficult to keep energy levels up with a hungry belly, so have lunch delivered or arrange for food trucks to visit your dealership (which can be a fun diversion for both employees and customers!) There are even healthy vending machines now that offer soups, salads and sandwiches.
Limit Overtime and Weekend Work. In the annual "Best Dealerships to Work For" list compiled by Automotive News, a common perk mentioned by dealers is limiting the amount of overtime hours or weekend hours that employees are allowed to work.
Require Vacations. Yes, seriously. Everyone needs a break now and then. Spending time with family and friends is important. If your employees aren't taking their vacation days, encourage that they do. If they really don't want to, give them a bonus equivalent to the paid time they didn't take off.
Acknowledge Sacrifices. Occasionally your employees may have to miss important family events. When they do, acknowledge their sacrifice and express your appreciation with at least a sincere thank you, or with a gift card or other small perk.
Consider Profit Sharing. If your company culture is hard-working and all-encompassing, it's important to show your appreciation where it really counts. Your company profits rise as a direct result of the effort that your employees put in every day, so sharing some of those profits in the form of a bonus is a great way to let them know they are valued.
Offer Part-Time, Flex-Time or Shared-Time Options. Sometimes life throws us curve balls that require extra attention. It could be a new baby, a child with special needs, or an ill relative that requires care. If you have a valued employee who is struggling with work-life balance, let them know you're willing to work with them. Offer part-time, flex-time or let them know you're willing to hire someone to share their responsibilities with, for as long as they need. Reassure them that their full-time position will be there again, if and when they want it.
Offer Time-Saving Perks. Some dealerships in the Automotive News "Best Dealerships to Work For" offer perks that save their employees time. Arrange for on-site services such as shoe shining, dry cleaning pick-up and drop-off, or pedicures and manicures.
On-Site Seminars and Trainings. Another perk many employees appreciate is on-site seminars and trainings for topics such as personal development, stress management, meditation, health and wellness and financial education. A time management seminar may help dealership employees prioritize their time and appointments, which can reduce stress and customer wait times, while increasing efficiency and work load in the shop.
Encourage Health Initiatives. Healthy people are for the most part, happier than people who are not healthy. To keep employees physically healthy, consider running a fitness challenge where workers compete to lose weight and earn points they can use towards prizes. Pay for a trainer and/or nutritionist to come in on a regular basis to work with employees on fitness and eating plans. Offer to pay gym memberships. Form a company running group or walking group. Sponsor a smoking-cessation program. When companies make fitness a priority and fun, it's easier for employees to accomplish health goals.
Encourage Employee Feedback. Ask managers and employees to meet on a regular basis to discuss their needs and challenges, including work-life issues. Ask employees for suggestions and make an effort to implement the better ideas.
If you are worried that offering a work-life balance to your employees will have a negative impact on your bottom line, remember this. When your employees are happy and engaged at work, they take better care of your customers. When your customers are taken care of, they are more likely to become loyal customers. Loyal customers lead to higher profits. Also, creating a work environment that fosters employee happiness will attract and retain high-quality employees.
What are your tips for creating a work-life balance for employees?
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Auto/Mate Dealership Systems
Top Five Reasons Why Good Employees Quit
High employee turnover rates continue to be a problem for car dealers, according to the 2015 NADA Workforce Study. Competition for talent is fierce. For dealers, this means that retaining your best employees is perhaps even more important than the ability to find and hire new talent.
At Auto/Mate we hire people with car dealership experience, so we have interviewed literally hundreds, if not thousands of ex car-dealership employees. In our experience, here are the top five reasons why good employees quit their previous position(s):
1) Management Doesn't Care. Whether this is true or just a perception, when employees feel like their managers don't care about them they become unhappy. To be a good manager, it's important to form personal connections with your employees, recognize their achievements and honor your commitments to them.
One comment we hear a lot is "They promised I would make more money than I did." This complaint is also about the fact that a manager at that dealership didn't honor a commitment to this individual. It's important in the hiring process to not oversell your opportunities. If the last salesperson in that position made $60K a year don't promise new job applicants they'll make $80K. Once the new hire comes on board and learns that realistically they will make $60K, they will feel duped and rightfully so.
The best managers are caring, approachable, trustworthy and honorable. If your best employees are leaving, take a closer look at their managers. Do they possess these important qualities?
2) No Opportunity for Advancement/Training. Another reason employees quit is because there were no opportunities to advance their careers or learn new skills. When you have a talented employee, it’s up to your managers to find ways in which they can expand their skill set, take on new responsibilities and advance their careers. The most talented employees want feedback and recognition. If your managers don't provide that, your best people will feel unappreciated and become complacent.
3) Overworked. Another comment we hear a lot is "I got burned out." It's all too common for managers to solve their productivity problems by expecting their best employees to step up to the plate. But what do those employees get in return? When people are continuously expected to work long hours with no additional compensation, they feel taken advantage of. According to research from Stanford, productivity per hour declines sharply when the workweek exceeds 50 hours, and after 55 hours productivity drops so much that they may as well not be working at all. So if you must overwork your best employees, be sure to compensate them in some way and make sure they know their contribution is appreciated.
4) Not Passionate About What They Do. Talented people have passion, and providing opportunities for them to pursue their passions improves productivity and job satisfaction. Many managers want people to work within certain parameters, perhaps out of fear that productivity will decline if they let people pursue other areas of interest. In my experience the opposite is true. If you let people discover new interests, find their passions and pursue new goals, then their overall productivity increases. If this requires that an employee move from one department to another, even if they have no prior experience in that area, managers should be open to the idea. It's better to lose a talented individual to another department than to a competitor.
5) Don't Feel Like They're a Part of Something. In Daniel Pink's book Drive, one of the biggest motivators for employees is to feel like what they do matters. Employees want to feel like they're contributing towards something that's bigger than themselves. It's up to management and principals to define what that "something bigger" is.
What's your vision for your dealership? Why are you in business (other than to make money?) What are your core values? How are you giving back and helping your employees and your community? Do your employees feel like they're part of a team or a family, or do they feel like just a number?
This vision of who the company is and where it's going should be communicated with employees on a regular basis. The vision has to be about more than being successful and making money. A motivating vision might include being the best at something, first at something or community causes.
The best leaders and managers challenge employees to accomplish things that seem inconceivable at first. Instead of setting mundane, incremental goals, they set lofty goals that push people out of their comfort zones. Then, those managers do everything in their power to help the employees succeed. Make it clear you need your employees help to get you where you're going.
People rarely quit jobs; they leave managers they don't like or trust, and they leave companies that don't offer career advancement or job training opportunities. It's difficult to find hard-working, intelligent employees, so when you have one on staff, be sure to let them know they are valued for the rare commodity that they are.
What are your tips for retaining top talent?
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Auto/Mate Dealership Systems
How to Reduce Employee Turnover
In the 2015 NADA Workforce Study, one of the most shocking statistics to me was that only 33% of all sales consultants hired reached their three-year service anniversary; which means that 67% of sales consultants that were hired quit within the first three years.
The high turnover rate among car salespeople as a whole leads many dealers to shake their heads and say, "It's hard to find good help." Actually, nothing could be further from the truth. There is plenty of good help out there; but the hard-working, smart and personable "help" that you're looking for prefer to take jobs with companies that have a market-based salary structure.
Here in Albany, a college graduate can go work for many companies and receive a starting salary of $40K to $50K with great benefits. When given a choice between a guaranteed $50K and a sales job that basically pays minimum wage plus commissions, why would anyone choose the latter? Sure, the "potential" may be there, but it takes years to build a book of clients and make $70K to $90K as a car salesperson; and even then, there are no guarantees.
I have long been an advocate of changing pay plans in retail automotive. For several years I was a General Manager for a large dealership, so I know what the dealer's thinking is. Why would you pay a salesperson unless they sell something? Dealers are afraid if they offer a good starting salary, the salespeople would have no motivation and would just sit around and do nothing.
Unfortunately, this type of thinking demeans the very salespeople you are trying to hire. You hire and pay people salaries to do other jobs in the dealership, and they do their jobs, don't they? If they don't do their jobs, they get fired. It's no different if you think about paying salespeople a salary. Pay them a salary to do their job, and if they do a good job, they get rewarded further with pay increases or bonuses. If they don't do a good job, fire them and hire someone else. The bottom line is that you want your managers to manage the sales staff, not the pay plan.
Offering to pay a salary with the potential for bonuses and growth will attract a much higher-caliber employee than offering to pay minimum wage plus commissions that all too often these days, amount to a "mini" of $150 per car. If you want to hire someone intelligent and hard working, you have to be competitive. If you're not willing to be competitive, then you're going to get what you're going to get.
Another reason I advocate changing pay plans is because when you hire someone for minimum wage, you can be pretty confident that person is looking for a better-paying job from day one. Whereas if you pay them $50K, that person may not look right away; in fact, they may be motivated enough to stay for a while and work hard so they can make $60K or $70K.
I realize that front-end gross is declining, but in the last few years, dealerships have had incredibly profitable years. They're making money on trade-ins, on F&I and on service work. Incentives from manufacturers have increased significantly, encouraging dealers to give up front gross as a strategy to meet manufacturers' stair step programs and to move the customer into the F&I office.
So yes, front-end gross may be low, but dealers are still highly profitable. Isn't it time to pay our starting salespeople a living wage?
My belief has long been that paying salespeople a good salary will actually increase front-end gross. A salesperson that is motivated only by commissions looks at every customer with the attitude, "What can I get from this person?" Instead, the focus should be on listening to the customer, focusing on their needs and taking care of them with the goal of building long-term loyalty.
Some of the luxury manufacturers and large dealer groups have been dabbling with new pay plans, and the results have been encouraging. Titus-Will Automotive Group in Washington recently changed the title of their salespeople to "product specialists," and offers a choice between a traditional commission pay plan and a salary with bonuses. According to a recent article in Automotive News, operations manager Court Will says the approach has resulted in better quality applicants and more applicants coming from other industries.
BMW has shifted to hiring "product specialists," who are hired not to sell cars, but to provide a great customer experience. Sonic Automotive is also rolling out a group-wide, one-price policy with no-commission customer service reps. The goal behind these moves is to improve the customer buying experience, which will ultimately result in higher levels of customer loyalty and profits.
This makes sense to me; salespeople who make a living wage are more likely to be happy in their jobs, which means the customers will be happier too. Happy customers lead to higher profits, so why fight it? The trend seems inevitable and better for all parties involved.
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Carter West Public Relations
How to Create a 'Best Place to Work'
Recently Auto/Mate received a 'Best Places to Work' award from the Albany Business Review for the sixth year in a row. We have also been voted a 'Top Workplace' by the Times-Union multiple years in a row. Focusing on employee happiness has long been one my top priorities. People often ask me how I do it, but before I answer that, I'd like to explain why I do it.
This is a fact: your customers will never love your company unless your employees love your company. Auto dealers spend millions of dollars ever year on customer loyalty products, but you can't buy loyalty. Loyalty is when a customer has a bad experience at your dealership, but still comes back to give you another chance because they have a relationship with your employees and they believe in your sincerity.
Creating a 'Best Place to Work' is Auto/Mate's version of a customer loyalty program. I am surprised when I scan the lists of winners in business journals in different cities. Very few dealerships make the list. Why is that? Most dealerships I know are involved in community, donate to charities and offer career growth potential; they are perfect candidates to win these awards.
I believe many auto dealers are so focused on their day-to-day numbers they often fail to look at the long-term picture when it comes to running their business. Maybe they just don't realize the best way to ensure long-term profitability is to create a loyal customer base, and the best way to create loyal customers is to ensure employees are happy.
Another bonus of becoming a 'Best Place to Work' is that great employees will want to work for you. Attracting and retaining top talent is a big challenge for many dealerships, and yet this simple tactic--creating an awesome workplace--is not on the radar as a recruiting strategy for dealers. I highly recommend it.
Now for the 'how.' I just mentioned it's simple; that doesn't mean it's easy. This is a very brief summary of the process involved:
1) Toss out your CSI scores. Your CSI score has nothing to do with how loyal your customers are. You can have a satisfied customer who is not loyal, and a loyal customer who is not satisfied. Gaming the CSI system is almost a requirement to satisfy the manufacturers; don't believe that's loyalty.
2) Make Customer Loyalty a Priority. You have to really care about this in order to make it happen.
3) Define Why You're in Business. Hint: the answer is NOT "to make money." This is similar to a mission statement. Your definition should inspire your employees and customers.
4) Define Your Company's Core Values. Do you want your dealership to be known for integrity? Family values? Write down a list of values and ask for all your employees to vote on what they believe your values are. Once you define your values, be sure to walk the talk. Don't choose a value out of thin air because you think it sounds good; your values have to be authentic to the way you do business.
5) Inform, Empower and Reward Employees. Share your vision with your employees. Announce your goals and ask for their help. Empower them to do what they need to do. Reward them with personal and public recognition; this is so much more meaningful than a spiff (although that's nice too).
6) Become a Great Place to Work. This is the hard part that requires research and implementation of new management policies. Nice perks and spiffs do not make a great place to work. What really motivates people is when they can trust their leadership, feel valued, have career growth potential and receive training and mentorship.
7) Hire the Right People. Many auto dealers make the mistake of hiring too quickly to fill a need. It's critical to only hire people who fit your culture.
8) Become a Leader, Not a Manager. How do you know if you are a leader? When you can take three days off and know your managers and employees are doing everything that needs to be done. Managers feel like they can never leave and have to make every decision.
9) Make Decisions for the Long Term. Try to look beyond the numbers and make decisions on what's best for your employees and your customers. Sometimes this means taking a temporary hit, but rest assured it will be made up later.
10) Track and Record Results. I use the Net Promoter Score (NPS) system to measure Auto/Mate's customer loyalty. The system is easy to implement and has a high response rate. Find out more at www.netpromoter.com
I encourage auto dealers everywhere to enter your local 'Best Places to Work' competition. Automotive News also has an annual 'Best Dealerships to Work For' competition. Make it a goal to get your dealership on these lists. It may take a few years, but the feedback you get from the anonymous employee surveys will serve as a roadmap on how to get there. You'll learn what you're doing right and what you need to improve upon.
To get more detail on these steps you can download our free ebook titled 'How to Create Customer Loyalty Without a Customer Loyalty Program' from Auto/Mate's website:
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Auto/Mate Dealership Systems
How Employee Causes Can Help Increase Volunteerism
Auto/Mate has been recognized for six years in a row as a "Best Place to Work" by the Albany Business Review and four years in a row as a "Top Workplace" by the Times-Union. One of the perks Auto/Mate offers is eight hours of paid volunteer time to every employee. To encourage employees to use the time and get involved in the community, Auto/Mate organizes groups to identify and participate in local charities.
Ronald McDonald House
Kelly Shaw, a payroll benefits specialist with Auto/Mate, discovered the Ronald McDonald House when her own child was in the hospital. "I started making small dinners, or cookies and cakes, and dropping them off at the hospital," Shaw said. "When I realized that some of the parents were from out of town and were staying at the Ronald McDonald House, I started bringing food over there."
Shaw's involvement with the charity grew and her manager at Auto/Mate encouraged her to get fellow employees involved. When Shaw posted flyers asking for volunteers to cook breakfast at the Ronald McDonald House, the response was overwhelming. "I was surprised how many people wanted to participate," she said.
Now, every other month a group of volunteers from Auto/Mate cook breakfast for the 15 to 25 guests staying at the Ronald McDonald House.
Regional Food Bank
Auto/Mate also organizes volunteers to visit the regional food bank on a regular basis. The regional food bank collects, sorts and distributes food to local food banks that deliver the food to those in need. Volunteers spend their time sorting food into different boxes, checking for recalled items and cleaning and packaging everything so it's in good condition.
Local Animal Shelter
Auto/Mate routinely holds "pet drives" and donates items to a local animal shelter. Employees bring in everything from blankets to towels, pet food, kitty litter and toys.
Adopt-A Family
Every year around the holidays, Auto/Mate and its employees "adopt" several local families and a senior in need. The families' wish lists are assigned to teams who go out and do the shopping. Then all employees are invited to participate in wrapping the gifts. "We make it into an event, with Christmas music and a catered lunch so that people really get into the spirit," said Shaw.
These are just some of the causes that Auto/Mate volunteers have become passionate about. For companies that want to encourage employee involvement in their communities, Shaw makes the following recommendations:
- Offer paid volunteer time
- Executives and managers should be involved to set an example
- When forming a group of volunteers, put a manager in charge and include employees from different departments that don't normally have the opportunity to interact
- Let employees choose the cause
"Nearly everyone has been touched by something; whether it's a loved one that has fought cancer, or been stricken with Alzheimer's, or is a veteran," said Shaw. "Any time an employee is directly affected by a cause, it inspires co-workers that much more, and helps to foster that feeling that we're all family."
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