Why Would I Work For You – Part 2

This is Part 2 in a two-part article. (view Part 1)

For a manager, it can cost as much as 30% to 40% of the manager’s yearly compensation in recruiting and training expenses.

For technicians it can be higher, considering the average technician’s sales value is $13,500 per month, with a 72.0% gross profit ratio. That equals $9,700 per month.

Annualized, this value is $162,000 in labor sales and $116,400 in gross profit. These figures do not take into consideration the amount spent to recruit and train a technician’s replacement.

Now that we have listed some of the reasons for employee defection, let’s discuss some considerations to help retain our team members:

  • Offer defined career paths
    • Offer advancement opportunities to team members for positions they are interested in.
    • Ensure our team members know what the requirements are for consideration for any position they are interested in and help them develop a career path to get there.
    • Smart managers invest in their workers’ professional development and seek opportunities for them to grow
      • The old saying of “I am scared to train my employees because they may leave” does not take into consideration what happens to your company if you don’t train them and they stay.
  • Education reimbursement/Tuition Assistance
    • This reimbursement should include any courses toward a degree from an accredited school. An educated team member will always be more productive.
  • Leadership training for every team member.
    • Mandatory for all managers
    • Team members don’t quit their jobs, they quit their managers.
  • Employee satisfaction surveys every quarter at a minimum. Read the results and listen to your team members.
  • Team member recognition – letting them know they are appreciated
    • This can be as simple as
      • Saying good morning every day to every team member
      • Saying Thank You for all your hard work
      • Buying a team member lunch as a surprise
  • Know they bring value to not only the company but to you as a manager
    • By offering our team members growth potential and expressing our appreciation they will know they matter and bring value to our company.
  • Work-life balance – What message is your dealership sending? If team members are expected to regularly work long hours for days in a row and be at your beck and call, you will likely run into issues with employee retention. Burnout is very real. A healthy work-life balance is essential and employees need to know that management understands their importance.
    • o The day of forcing our team members to work 6 days a week 10 hour a day is gone. Studies have shown today’s employees, regardless of age, value time off as much and in some cases more than compensation.
    • Be aware of their commitments in their personal life and understand that the new age employee values time off more than they do monetary gain.
    • Encourage staff to take vacation time and if late nights are necessary to wrap up a project, see if you can offer late arrivals or an extra day off to compensate and increase job satisfaction. Many companies offer telecommuting or flexible schedules to improve work-life balance for their employees.
  • Outside of the box compensation alternatives, (the flat rate compensation structure is outdated and detrimental to attracting new talent).
  • Benefits–as business owners we must ask ourselves, is the savings to the company in the lower level of benefits offered to our team members worth the increase in employee turnover and the constant fight to attract talent?
    • What do you offer other than compensation? In today’s market, insurance and 401K alone are just not enough.
      • Profit Sharing after so many years of service.
      • Monthly tool allowances
      • Company-offered vacations for team members that reach certain pre-determined criteria
  • Do you offer anything more that the cookie cutter 401K or profit sharing for retirement? What incentive do your team members have to spend their whole career with you?
  • Team member bonus/reimbursement programs that help offset some of the cost of the equipment expense.
  • Encourage referrals and recruit from within; encourage current employees to offer referrals. Current employees can realistically describe a position and the environment to the individual he/she is referring.

One topic I always challenge my clients with is, if I was a job candidate and all your competitors in your market area were attempting to hire me, what would entice me to choose your store? What do you offer different from every other dealership recruiting your candidates?

If we work to correct the atmosphere that is causing our current team members to leave and focus on creating an environment that encourages appreciation, education, team unity, and a family atmosphere, then we will see that our company will become more attractive to potential new candidates

This is the kind of expertise that M5 Management Inc. specializes in. If you are interested in more information regarding the information in this article, please contact me at (205)-603-1996 or kempevans@m5ms.com.

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