According to the most recent jobs report from the Bureau of Labor Statistics (BLS), the United States job market continued to grow steadily, with 261,000 jobs added in October 2022. This shows a slight decrease in the jobs added compared to the previous month, while the unemployment rate increased to 3.7 percent. Conversely, many high-tech companies have signaled – or already implemented – layoffs or hiring freezes. Could this mean a larger pool of potential recruits for dealers to scoop up?
With continued signs of strength in retail automotive and strong revenue potential, dealerships have some strong selling points to attract the best candidates. But don’t rush to hire the first available candidate. Successful hiring at the end of the year should be strategic. Hiring the right candidate is very different today. Let’s look at some of the challenges and opportunities dealers face when hiring.
Hiring Five Generations Deep
For the first time in modern history, there are currently five generations active in the workforce. Each generation brings a unique perspective to their job, providing an employer with a rich, cultural microcosm that can relate to every type of customer. Although the pandemic accelerated changes to the traditional workplace, many of today’s workers have reassessed their relationships with work, placing a priority on work/life balance as well as company culture. Making those diverse perspectives work effectively can be challenging for any employer.
Where Are the Candidates?
Today’s savvy dealers are reaching out to as large a swath of candidates as possible, casting a wide net across various demographic pools to make hiring quicker, as well as building a more diverse workforce. Post open positions on sites where candidates will see them. Think beyond traditional sites like jobs.com and get tactical with local college and trade school career and alumnus pages. Be clear that you are actively seeking a wide variety of candidates, and be diligent about removing hiring biases for gender, ethnicity, education and skillset.
Dealership culture is defined by the relationship between management and employees, through the alignment to achieve certain goals and aspirations. If everyone is closely aligned, employee satisfaction – and success – increases, turnover decreases and hiring improves. But dealer management is responsible for clearly communicating the goals and helping employees achieve their aspirations, while also empowering team members to generate results.
Values = Value
Having values or a sense of moral codes is often considered a “soft” attribute for an employee. After all, values are not known for generating profit. However, failing to establish an effective company culture that leads with values such as respect and dignity can have a direct impact to revenues. Examples include:
- Frustrated and complaining customers resulting in customer churn
- Internal politics and an us vs. them mentality resulting in diminished teamwork and employee turnover
- Case-by-case-by-case evolution of employee behaviors resulting in frustration and resentment
- Misinformation and lawsuits resulting in distraction, poor decisions and wasted resources
- Complacency resulting in market share loss and business decline
Each of these items directly hits company performance, decreases productivity, and diminishes revenue.
Our proven team of advisors can assist you and your team with the training, tools, and resources needed to hire the right team members, create a thriving culture, and establish the right goals for your dealership. At EFG Companies, we’re more than an F&I provider; we’re your business partner with more than 45 years of expertise in the retail automotive industry. Contact us today to learn more about hiring with excellence.