One of the biggest challenges in our industry is attracting and retaining top talent.  We have struggled with chronically high turnover for as long as I’ve been around—and that’s been a while…this December will mark the beginning of my 22nd year in our wild and wonderful business!  Our astronomic turnover doesn’t seem to change no matter how much we yammer on about culture.  I have some opinions about that but that is another article isn’t it? 

What I felt compelled to write about after helping someone fill out an online application is this:  Dear Lord……please stop making it SO hard for people to send their initial application!!!!!  The entire process should take literally a few minutes not almost an hour for God’s sake! 

I get it…..I really do.  I used to be a stickler for having the entire application filled out right off the bat.  And I do still advocate for a full application collected in the hiring process.  I want that application that requests information that I want to know versus the resume which is information the candidate wants me to know.  I still believe that this is very important and can lead to discovering critical information about your candidate.  I’ve simply changed my mind about WHEN I want that information.  And if you just can’t see your way to changing it, PLEASE don’t put fields like date of birth on your application.  Are you asking for a ADEA (Age Discrimination) suit?  Again, another article. 

But seriously, times have changed people.  We are not living in the same world we did even 5 years ago.    My perspective has changed in the last few years and I believe that we need to keep it simple and make the process faster.   Get the long tiresome application later in the hiring process.  Please. 

Why you ask? 

Well, I’ll tell you.  It’s pretty simple really. 

Because you are going to lose candidates. 

We are operating in a very interesting employment environment.  In the beginning of October the Department of Labor posted that for the 18th month in a row there were more job openings than people to fill them.  Think about that for a minute.  For a year and a half employers have been in competition for candidates that have a LOT of options.   

Additionally, we have historically low unemployment rates AND the workforce is filling with new generations.  Did you know that in just 4 very short years that 75% of our entire workforce will be made up of Generation Z & Millennials?  To top this off our Boomer generation is finally retiring—not only leaving a physical talent gap but also a skills gap.  In our industry, many of these Boomers hold our top management position.  Do you have a succession plan for this? 

So………..

So, we have candidates with options, very different wants and needs, who are doing EVERYTHING with their phone—and won’t be spending an HOUR to fill out an application for a position they MIGHT want to take.  Chances are they are already working and if they are dissatisfied and looking for a new employer they are going to apply with the company that gets them.  And if you don’t make the process quick and easy—that’s not you. 

So, rethink your application process—who knows what amazing new talent you are missing and gifting to the competition with an archaic process.  The talent pool is smaller than the ocean of open positions plus they are vastly different in their expectations. 

So, don’t be so old school in your recruiting strategies.  Update your thinking, update your process, update your application, update your ATS (my favorite is www.automotohr.com).  Make it simple, easy, and mobile friendly.  Talk to candidates—sell them on your dealership and your employee value proposition (yes, another article)—THEN once YOU know you want them, and THEY are convinced they want YOU—get them to fill out the application. 

You’re welcome and have a happy day! 

It is almost September and September 30 marks the deadline for submitting Component 2 of the EEO-1 Survey.  

Check out my video tips on how to complete Component 2

Hello Automotive Family and Happy Tuesday!

I've talked about it before and I'm sure I'll talk about it again.  Fair Credit Reporting Act in regards to background checks.  

https://youtu.be/_ggTV0IKnFg

Shocking but true!  Dealers should review their processes for compliance with Fair Credit Reporting Act in their hiring practices.  Virtually all employers run background checks on candidates that they want to hire, dealers included.  I have encountered unfeigned surprise and genuine confusion when explaining this compliance to management.  In our industry, FCRA compliance points to sales and F & I—not the hiring process.  We spend significant time, energy, and resources ensuring compliance in this arena—as we should.  We should also not overlook unintended exposures created by innocent ignorance.  “I didn’t know” or “I wasn’t aware” has never been an effective defense for non-compliance in any court room.   Everyone’s favorite craft store, Michael’s discovered just what a pain it can be if the correct steps are not followed to insure compliance in the hiring process—interestingly, the latest (January 2017) FCRA claim against them wasn’t the first. 

The claim was noted in an article by SHRM, “Top 10 Employment Cases of 2017 Reviewed”.  This most recent litigation was truly a nuisance claim and was dismissed because there was no injury found.  Apparently, a group of individuals filed a claim alleging that the FCRA was violated because they did not receive a required notice, presumably notice of intent and authorization to obtain a consumer report—the dreaded background check.  All the individuals in the claim were hired—yet they filed a suit!  What the heck you say?  That’s what I said too!  Further investigation shows that Michael’s did give notice but that notice was not in a stand-alone document.  It was in the online application, which is not sufficient and that error gave someone ammunition to be a pain in the you know what.  Sometimes people are just looking for a deep pocket to dig into and that appears to be what happened here.  To me, the fact that the claim was dismissed due to no injury to the claimants makes no difference.  The fact is, Michael’s neglect to follow the very clear steps for running background checks caused them to have to spend very real money to defend a claim that went all the way to the courtroom—to be dismissed.  Personally, I think it’s kind of ridiculous. 

Dealers may want to take the time to make sure they are compliant.  Ensuring that notice is given, authorization obtained, and confirming the 2-step adverse action process is followed can significantly lower a dealer’s exposure to ridiculous and unnecessary nuisance claims—ask Michael’s. 

Women In Automotive 2018

It’s hard to believe that one week ago I was in Orlando at my second Women In Automotive Conference.  I met so many wonderful, talented, strong, and amazing women!  Dealer Principals, OEM,  fixed and variable dealership personnel, vendor partners—all of us there, connecting, learning, laughing, and maybe even a little crying.  (I don’t mean to leave out the great men who were there, supporting WIA…there were quite a few and we need you!)  It really was amazing and I feel very blessed to be a part of this needed movement.  “We are Stronger Together” was the theme this year. 

The “We” concept—the idea that TOGETHER we can accomplish what we could not accomplish alone—is something that has been central to my life for the last 24+ years.  So, when I heard the resounding “WE” coming from the stage it went straight to my heart.  In my experience, this concept can create actual miracles.  Really. 

As the conference progressed, what came to me was “Walking the Talk”.  I mean, let’s face it.  Sometimes we women can be our own worst enemies.  We can be catty and judgmental.  We sometimes make assumptions and can be…ok…I’m just going to use the word:  Clicky.  We can be clicky. 

My first experience at WIA taught me about how important it is to walk the talk of “we”.  I came to my first WIA Conference last year, not knowing anyone and unsure of myself.  I had just opened my consulting business a few months before and frankly, I was scared.  I remember taking a deep breath and diving in…but it wasn’t easy (and if you know me, you know I’m an inherent extrovert—being new is daunting no matter what your personality type). 

But you know what broke the ice for me last year?  Another woman, Bobbie Herron, who was having a conversation with a group of fabulously dressed people just a couple of feet from where I was standing—alone.  Bobbie noticed me and literally pulled me into that conversation.  I have never forgotten that.  It changed the conference for me.  I was so happy to be able to thank her for that moment at this year’s conference. 

Another amazing woman who walks the talk is Nicole Ashe of Cox Automotive.  We talked at that first WIA for a time and as we talked—well, the only way I can describe it is that she “saw and heard” me.  Nicole is a board member, a speaker at the events, and very busy—yet as we spoke, her attention was focused on me.  Asking me questions and truly listening to my answers.  Then she remembered me when she saw me again!  (Somehow it never ceases to amaze me when people remember me).  The next time I saw her at DD24 we talked again and now correspond once in a while.  She’s become a model for me.  She and Bobbie both.   Their inclusive, reaching out a hand and heart, might be a model for us all.  The fact is, their openness—their reaching out, gave me the courage to reach out to people and begin relationships I may not have begun otherwise. 

This of course isn’t a one way street.  We also need to be open to the reaching out and respond to it. 

This leads me to a connection I made with a young woman.  I met Natalie at the first event of the Conference—Speed Networking.  Yes, it was just what you imagine.  We sat across from someone we didn’t know and talked for 5 minutes or so.  I sat down across from a lovely, porcelain skinned young woman with a beautiful smile.  We both kind of looked at each other—and we jumped in, telling each other what we do for a living etc.  Natalie is probably more than 25 years younger than me and I found myself in awe of her courage and go get it attitude.  She has just begun her second dealership position after graduation from college.  And here she was at WIA and jumping in to a scary speed networking event!  And she came on her own dime and steam!  As she told me about herself and we talked about different career paths, I found myself telling her that this conference is about women helping each other, supporting each other.  As our time drew to a close and it was time to go to the next person, I urged Natalie to connect with me and if she needed to bounce things off of someone I would do my best to be there for her.  And off we went our separate ways, meeting the next person in line. 

That night, a little miracle of “we” happened.  I received a connection request from Natalie on LinkedIn!  This small thing truly made my night.  We have had been communicating via email and LinkedIn since and I hope we continue to get to know each other.  I got to take a picture with Natalie and it’s one of my favorite of the conference.  It reminds me to Be the We—to Walk the Talk.  It’s also a reminder to be Natalie—be bold, be open, reach back.    

Because it is true:  WE really are stronger TOGETHER. 

Can the Turnover Struggle End?

By Sandy Zannino

You know it.  I know it.  We all know it.  Turnover in retail car dealerships is and historically has been high.  It seems as if the struggle never ends.  NADA’s 2016 Workforce Study recently came out and my reading of it kind of went like this:  Read a sentence, sigh—Read—Sigh—head shake…You get the picture. 

When I read that average tenure at dealerships has steadily gone DOWN (sitting at 2.4 years for 2015) I decided to write this article.  Why?  Because I believe that there are simple and easy to implement ways to reducing turnover at dealerships.  I believe this because I have experienced it.  I’ve experienced working for a dealer as head of HR with an impressive 26% turnover rate across three stores. 

When looking at turnover departmentally, sales has the highest turnover.  NADA states that overall sales turnover is 67%!!!  (Luxury lines at 47% and non-luxury at a whopping 72%) We’ve all read the statistics about the thousands of dollars turnover costs an organization.  While these are all true there is another soft cost not as often talked about.  Loyalty.  Customer Loyalty is built upon relationships…if sales staff is turning over before they have the chance to reach maximum productivity (3 years if NADA is to be believed)…how are they building strong customer relationships for the dealership?  Why are they turning over?  Is it because they aren’t loyal to you, their employer?  Employee loyalty leads to customer loyalty.  Loyal employees lead to lower turnover.  Lower turnover leads to higher bottom line.

So, how can dealers effectively tackle turnover and begin making headway?  It can be done.

1. Make the decision.  Sounds simple, right?  But all action begins with a decision, followed by the commitment to follow through.  So, make the decision to act for your organization.  Make the commitment to your decision.  That’s the easy part. 
2. Measure your turnover.  It’s a simple calculation and easy to analyze and annualize.  These numbers can be drilled down by department, position, voluntary termination, and involuntary termination with simple excel calculations.  I also like to add a calculation for length of service.  The patterns will emerge and tell the story of where your dealership needs to focus its program.  
3. Training for managers to slow down in the hiring process—hire for fit, aptitude, and past performance.  In our industry, often managers make a hiring decision based on the first interview and they seem to want that warm body on the floor or in the bay.  It’s been my experience that providing tools and training to assist managers in the interview process not only slows the process down, but allows them to delve deeper into the candidate’s past performance.  I’m a firm believer that past performane is the best indicator of future performance—teach your managers how to dig down with behavioral interviewing questions.  Hiring managers should also be well versed in your company’s culture, benefit offerings, and policies.  The interview is the first impression for a new candidate and the really good ones want to know these things and they want to know what to expect.  New employees are making a decision in the first few days after they are hired—Should I stay or should I go?  If they decide to go, they will be looking for the next gig immediately and be gone within 30-60 days.  What does your turnover report tell you? 
4. Create and implement a fantastic first day orientation for your new hires.  I like to call it the “day before the first day” because while it is their date of hire, a good orientation should take at least most of the new hire’s first day.  Be creative!  Be welcoming!  Heck, give them a company pen!  There is a lot that can and should be included in a new hire’s first day.  Get the some of the boring stuff out of the way—I9’s & W4’s for example.  Throw in a PowerPoint presentation that explains the company history, culture, core values, awards etc.  Does your dealership have a fabulous holiday party?  Talk about it or other fun events.  Talk about community involvement.  Talk about why it’s great to work for you!  Don’t forget handbook distribution, specific policy acknowledgements, and explanations.  Some dealers are paper based, some have electronic polices and some even have it all in a 3rd party software.  No matter the method, you can come up with a process that works for your company.  It’s also a great time for new hires to complete any mandatory trainings; for example, techs and lift training or sales and service safe driving training.   Since the implementation of Obamacare, many companies went to a 60 day wait period for benefits—the day before the first day is also a great time to explain the benefit options and enrollment method to new hires.  In the end, your new hire’s day before the first day, should be authentic, welcoming, a little boring, and very informative and given by someone enthusiastic about working for you.  A great first day goes a long way in turning that stay/go decision into YES, I am staying. 
5. Follow up with your new hires.  Don’t send them off after a great introduction to your company with just a good luck wish.   Introduce them to their new team (maybe even have employees lined up who will show them around) and take them to their manager for specifics on the next day.  Check in on them, see how they are acclimating, if they have questions etc.  Make a commitment to follow through with your new hires for at least their first 90 days—it will make a difference.