Harlene Doane, DealerStrong's COO, goes through the steps of how to hire, train, and retain your staff for higher profitability. She addresses the ugly word most businesses try to avoid: Turnover

1. Harlene Doane, COO
Hiring, Training and Retaining
Talent for Higher Profitability

2. How to Hire, Train and Retain for
Higher Profitability
The Ugly Word
2x worse to your business than any 4 letter word
One that most business owners don’t want to talk about … at
least as it relates to employees
TURNOVER

3. Personnel Turnover
Not always a bad thing
Must be monitored

4. Personnel Turnover
When is turnover a bad thing?
• When it’s too high
• When it’s too centralized
(department or position)
• When it’s the top talent

5. Turnover Rate
1) Average the # of
unique individuals who
received a paycheck
each month for the
last 12 months.
2) Count the # of unique
individuals who
received a paycheck in
the last 12 months.
50
134

6. Turnover Rate
3) Total # of individuals
receiving a paycheck
on the last pay cycle.
42
92
Subtract #3 from #2.
This is total terminations
in the last 12 months.
4)

7. Turnover Rate
Turnover rate for Sample Motors
Total terminations/avg # of employees
* 100%
92/50*100 = 184%

8. Turnover Rates
Turnover Rates
All Industries 42.2% National
Automotive All 36% National
Highest turnover 66% Automotive Sales
2015 NADA Dealership Workforce Study

9. Hard Turnover Cost
Employee termination duties 2hr@$15= $30
Creating & placing ads 2hr@$15= $30
Ad cost or promotions $250
Screening, testing, interviewing 15hr@$15= $225
Paying someone else to do the job
until new hire begins
80hrs@$15*1.5= $1,800
Orientation and training of new hire Trainer – 40hr@$20= $800
New Hire – 40hr@$15= $600
Total Hard Cost $3,510

10. Sample Motors Turnover Cost
$3,510 Hard Cost
+$7,020 Soft Cost (2x Hard)
$10,530 Total Cost Per New Hire
X 92
$968,760

11. HiringSlow Down to Get it Right

12. 5 Steps to Hire Right
1. Write a Clear Job Description
2. Create Great Ads
3. Screen & Test
4. Interview
5. Additional Interviews & References

13. Write a Clear Job Description
• Job title
• Immediate supervisor
• Purpose
• Duties & Responsibilities
• Qualifications
• Physical requirements
• Direct reports

14. Great Ads
You are selling the job - Why
work for you?
Use your job description for
the base
Be creative (but not deceitful)

15. Highly successful auto dealer is searching for the highest caliber sales professionals to join the
automotive industry and their expanding operation.
If you don't have automotive sales experience, don't miss this opportunity to be trained to excel.
If you are a high energy individual, who is motivated and focused on your success this is the
opportunity to excel.
If your past employment includes focusing on customer service, or working with a very defined
process this position is a great fit for you. There is no need to be afraid of sales. Sales is simply a
defined process of meeting the needs of the customers in this dealership.
Job Requirements
*Valid drivers licenses
*Able to clear an insurance screen to operate our vehicles
*Ability to follow direction and process consistently
*Ability to deliver a high level of customer satisfaction
*Ability to communicate and present yourself in a professional manner
*Ability to execute customer follow-up as mandated by your immediate supervisor.
Exceptional earning potential and room to grow with a expanding company.

16. Looking for that upbeat winning personality that loves people and solving
problems.
Entry level - Full time position with opportunity for growth.
DUTIES & RESPONSIBILITIES:
• Provide an outstanding customer experience
• Follow direction in showcasing company products and options
• Maintain accurate customer records
• Be professional in dress and manner
QUALIFICATIONS:
• Computer skills
• Ability to prioritize effectively; strong organizational skills.
• Strong written and oral communication skills
• High school education or equivalent
All training provided.
Base Salary plus bonus eligibility from day one.

17. Screening & Testing
Job description match
Accomplishments
Duties or responsibilities
Test for skills needed

18. Interviewing
1. Know what you can and can’t ask!
2. Resume/application verification
3. Set of standardized questions
a. Real dealership scenarios
b. Attitudes/bias

19. Additional Interviews & References
Don’t be hesitant to hold multiple interviews, especially for
management positions
References – the good and bad

20. Training
Train for Results

22. What to Train
1. Automotive
2. Dealership
3. Position

23. Grade Your Sales Team
What % of your sales staff can execute these exactly as
you want in your store?
Execute a dealership approved meet and greet?
Ask an approved inoffensive qualifying credit question?
Take a proper and complete credit application?
Conduct a proper walk around of a vehicle that matches
the customer’s ability to buy?
Present a write-up (4 square) as per procedure?
83% avg
95
80
85
80
75

24. When to Train
• Upon Hire
• Ongoing
• Daily (in store)
• Weekly (in store)
• Monthly (webinars, peer groups)
• Annually (corporate, conferences, conventions)

25. Why Train
To improve profits!
To improve retention!

26. 5 Reason Employees Leave Employers
1. Job was not as expected
2. Compensation not as expected
3. Feeling undervalued or underappreciated
4. Lack of training/coaching
5. Boredom/ lack of challenge

27. The biggest benefit of training and
retaining your people is …
increased productivity, because
well trained, tenured employees
allow you to have fewer people to
do the same amount of work!

28. Retaining
Reduce Voluntary Turnover
– Keep the Talent

29. 8 Ways to Retain Talent
1. Provide clear expectations
2. Set realistic goals
3. Provide opportunities for growth/reward
4. Recognize performance

30. 8 Ways to Retain Talent
5. Provide feedback
6. Share your passion and vision
7. Foster honest communication
8. Offer competitive compensation packages that your
employees want

31. The New Plan
Hire Right
Train for Results
Retain Talent

32. Build a HTR Plan
Determine turnover rates
• Store
• Department
• Position
• Voluntary vs. Involuntary

34. Create focus for each area
•Hiring
•Training
•Retention

35. Build a HTR Plan
Determine how to execute
•Current Staff vs. New Hire
•Deadlines, Dates, Schedule
•Identify Obstacles to Execution and
Eliminate

36. Build a HTR Plan
#1 Reason things don’t get
accomplished …
they never got started.
#2 Reason … they didn’t have a
deadline

38. Like what you saw?
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