Why do Dealerships struggle to recruit and retain star performers?
The motor trade isn’t alone in finding it hard to attract top talent. It is an issue facing many vocations and industries.
Unfortunately, it is predicted to only worsen over time – as employees working practices change and evolve from the desired “a job for life” ideal of our parents to the current appeal of “a job whilst it’s fun” of the younger generations in the work-force.
However, we would be kidding ourselves if we thought that we didn’t have our own unique challenges and issues in this area – as we most certainly do.
A few years ago it wasn’t un-common to have a draw-full of resumes for potential candidates applying for vacancies you didn’t yet have. Now however, it is a battle to even get one or two qualified applicants to reply to a recruitment advert!
Why the change?
It’s very easy to – and common – that we tell ourselves that the industry isn’t “sexy” anymore and has lost its wider appeal.
We also state that people have gone “too soft and aren’t prepared to work”! And that, other industries pay better, or have better working hours & conditions.
It’s also easy and very common to blame it all on “Gen-Y” and their perceived lack of work ethic, drive and commitment!
In all honesty though, these “answers” are merely a smoke-screen for the real issues and reasons why many talented people don’t want to work in Car Dealerships!
The real answer however isn’t quite as palatable, as it’s caused by weaknesses and deficiencies within in our own businesses, and unless we change, the situation will worsen dramatically and very quickly.
In short, the automotive retail sector does not do HR well – at many levels! We are a “people business” that often doesn’t appear to understand or appreciate people!
Doesn’t sound right? Not at your business? Well let’s look at the above convenient “answers”;
“The industry isn’t “sexy” anymore”
Nonsense, the motor-trade is more dynamic than ever. With all manufacturers bringing out ever expanding (and better) ranges of vehicles. Every manufacturer is looking for growth, and will battle hard to get it with great advertising and branding campaigns. The vehicles themselves now combine form & function of design like never before, with full IT integration, self-parking, active cruise control etc, etc. And cheap no longer means un-attractive or un-appealing. The rate of change and progress is astounding – all very exciting and “sexy”!
“The work-force has gone soft and isn’t prepared to do hard work”
That also is a “furphy” – people always have and always will throw themselves heart and soul at something they believe in. The key is getting them involved in something that they care about. Younger employees are studying longer, and getting more deeply immersed into things that interest them and stir their passions. They do however have little interest or passion for something that looks and feels like “just a job”. They want a career with meaning and passion.
“Other industries have better pay, hours and working conditions”
This may be true to a certain extent, as the motor-trade (particularly sales) does demand that a lot of time & effort is applied to succeed.
However, there has often been a talent drain for our sales teams into IT and Real Estate sales – and you can’t get a more time-demanding industry than real estate, with many of the sales people therein working extremely long and un-sociable hours.
The hospitality & tourism industry also attracts a fair amount of young talent, and they can work some of the most horrendous hours and shifts – with pretty poor financial rewards.
It also goes without saying that we don’t lose people to the resources segments due to improved working (or living..) conditions.
These other industries however do have other compensations – some financial and others based around enjoyment and “fun”.
Don’t believe the latter? Then how do Virgin Airlines get such high staff satisfaction and loyalty with one of the lowest pay structures in their industry segment?
“Gen-Y lack work-ethic, drive and commitment”
Really? – look at some of the most vibrant, dynamic and fast growing companies in Australia (media, advertising, IT, online start-ups’, etc) they are all full of Gen-Y staff working crazy hours and having fun doing it!
And here’s the key question you need to ask yourself;
If you aren’t attracting Gen-Y staff, who are you attracting?
There aren’t too many “baby-boomers” coming into the work force, and most Gen-X’ers are settling into the “purple patch” of their earning potential, so aren’t going to be moving around too much going forward.
If you haven’t yet worked-out Gen-Y, what are you going to think about Gen-Z?? Yep, coming to a work-place near you soon…..
So if the above answers aren’t really the reasons, what are we doing wrong?
Unfortunately the retail sector of the motor-trade has an image problem. Its’ not seen as somewhere where people want to forge a career – it’s often seen as “just a job”.
We are seen as an industry with high staff turn-over, and one where it’s difficult to get into management if you are young.
As an industry we commonly offer poor or no induction – other than the bare-legal OH&S requirements.
This may sound like “HR speak”, but it really is something that other industries do very well, and it’s far more than a geographical intro’ to the lunch room and the nearest fire escape. It should cover the history, culture and vision of the company. Who does what and when, who their mentor or “go-to” person is – and very importantly what is expected of them, and what they can expect of us.
Generally there is far too little on-going, quality training. We do model launches and vehicles spec’ updates pretty routinely, but how many organisations role out a 12 month plan of desired outcomes, and then plan how to achieve them by hiring in the best talent, or use the best resources to achieve them?
There is very rarely enough constructive (2-way) feedback. Performance management is usually only undertaken as part of a disciplinary or termination process! The industry often manages people out of the business, but very rarely manages them into the business.
We sometimes struggle to explain how an employee can still have a big future in our business without a manager’s title on their business cards. Often they have very little knowledge of what their manager even does in a broader sense. If more did they may well realise that managing or leading a team can be a very challenging endeavour – often without the perceived financial rewards!
Having spent a few years out of the industry the two biggest areas commonly “lacking” in our industry are Mentoring and Personal Development. This is particularly true the further up an organisation you go.
We often promote good employees to management roles and then never give them any management training or mentoring! We see them (and routinely ourselves) as “good operators” and therefore rarely offer or seek internal / external help or assistance to improve or better ourselves.
Other industries really do management and executive development far better than us – it’s often a contractual / legal compliance obligation.
All of these add up to an outcome where staff (or potential staff) find it difficult to have genuine buy-in or engagement! And if your staff aren’t engaged they are therefore dis-engaged. If they are dis-engaged they are looking for work elsewhere – trust me on that!
They don’t even need to leave the office to do it. They merely look up “Seek” (or similar) on their iPhones in your dealership and in your time!
So this all sounds quite damming and that as an industry that we are a lost cause?
This however, most certainly isn’t the case, and in fact there are many dealers and dealer-groups that already “get” this and are doing some great work in this area.
Moreover, most of the dealerships that aren’t doing the “Human Capital” role well are probably only neglecting to do so out of ignorance rather than any malice or wilful neglect.
We all need to start treating induction, training and development as part of our core business – as it most certainly is. We can’t operate an effective business without effective people.
It also goes way beyond training and development; we also need to manage our people in a much, more open and communicative manner. The days of the old “control and command” directives or orders to staff just won’t wash with the new or younger employees.
They need and want to be engaged & challenged – so engage & challenge them. Talk to them, let them be a part of the process or the fix, and watch them jump into the task with genuine passion and vigour.
And finally remember we run people businesses, so celebrate their successes and give them reasons to stay – they will become your best and most cost effective asset by far!
Heaven forbid they might even recommend you to their friends and peers……..