Category: Recruiting

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Maximize Productivity Ahead of High-Stakes Selling Season

The groundhog did not see his shadow; the clocks have sprung forward; tax season is in full swing, and spring is just around the corner. Powersports dealers across the U.S. expect to capitalize on a strong spring selling season. Before the frenzy starts, set your team up for success and avoid burnout by investing in your people today.

According to the Bureau of Labor & Statistics, 44.1 million people voluntarily quit their jobs in 2023. As of June last year, Powersports Business News reported that labor shortages continue, citing a survey by Sunrise Cycles stating that 62 percent of dealers surveyed were short staffed in at least one department.

We’ve all felt the stress that comes with a short-staffed environment. Everyone takes on more responsibilities, and burnout and disengagement are just around the corner. According to the most recent Gallup State of the Workplace Report, employee engagement has continuously dropped from 2020 through 2022 and the ratio of engaged to disengaged workers in the U.S. is now 1.8-to-1.

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Recruiting

Hiring Decisions Impact Your Bottom Line

Over the last several months, it seemed like everywhere you looked, there were ‘”Help Wanted” signs and hiring fairs offering sizable referral and signing bonuses. According to the US Department of Labor, the economy added 263,000 jobs in September, and the unemployment rate declined to 3.5 percent as more people entered the labor market looking for work. 9.7 million jobs have been added since President Biden took office, including an average of 378,000 per month over the past three months. However, we’re already beginning to see hiring trends slow as companies prepare for a potential recession in 2023.

While powersports dealers have been setting record profits over the last few years, salespeople have shared in the bounty, raking in significant wage gains tied to their commissions. However, with a recession looming, and inventory on track to becoming right-sized within the next year, dealers are coming to the realization that the current sales-staff might be ill-equipped to adapt to the changing times ahead.

Rather than simply being order takers and counting the commission checks, salespeople will once again need to return to customer service and sales best practices. Those who manage that shift gracefully should do just fine. Those who lack the training, or the capacity to change, will most likely find employment elsewhere.

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Recruiting

Good Talent = Revenue

Good news! The retail powersports market continues on a roll! According to composite data from more than 1,650 dealerships in the US using CDK Lightspeed DMS, sales increased 23.9 percent in February 2021as compared to February 2020. Early results from the Q1 2021 Powersports Business/BMO Capital Markets Dealer Survey reflected that more than half of all respondents said business was trending above plan.

In general, a positive sentiment has also spread across several economic indicators. According to the U.S. Bureau of Labor Statistics, unemployment rates in each of the large metropolitan areas dipped below 10 percent in February. The stimulus at the end of 2020 ($900B) and the relief package signed in early March ($1.9T) equate to nearly 14 percent of US GDP.

However, there are a couple of wrinkles which could put a damper on that optimism. Inventory continues to be an issue, both in terms of units and parts for all makes and models. Many dealers responding to the Powersports Business/BMO survey listed lack of inventory as the number one issue impacting their business. Certainly pent-up consumer demand bodes well for driving traffic to the store, but there is another issue facing powersports dealers. What happens when you don’t have enough staff – or the right talent – to capitalize on that consumer demand?

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