Associate Member Contribution from Tim Parsons of HBK CPAs & Consultants
Earlier we discussed how to make your dealership stand out. Now that you stand out, how do you attract quality people that want to work with you?
Let’s face it, the great resignation is here. Workers are beginning to voice their displeasure with the call that “there’s got to be a better way.” The pandemic simply gave it a push to the forefront. Employers need to wake-up if they hope to attract and keep quality employees. And believe it or not, it’s not just about the money. Employees are jumping ship for better opportunities, better work schedules, and quality of life.
Dealership employment statistics.
Employee turnover has always been a problem, but many dealers don’t understand, or seem to care about the severity of the situation. A JD Powers study found that the average dealership turnover rate is 46% for service, parts, and office staff and a whopping 80% for sales staff.
How to attract top talent.
A finding by Deloitte’s 2019 Global Human Capital Trends found that attracting and retaining talent is one of the biggest challenges faced by businesses today. When you consider everything that’s needed to replace someone; advertising, screening, interviewing, selection, and onboarding training, it’s easy to see why hiring is such a time-consuming and costly process.
To attract top talent, consider both active and passive candidates. What is an active candidate? Active candidates come to you and apply for a job. A passive candidate isn’t actively looking for a job, but if the right opportunity came along, they’d listen. Just because talented individuals aren’t knocking at your door doesn’t mean they shouldn’t know about your organization and why it’s a great place to work.
Look inward before looking outward.
Your current employees are your biggest asset to attracting top talent. Consider implementing an employee referral program that compensates employees that refer someone. More than any other source, your employees understand the type of candidates you’re looking for, and just as important, the type of individuals they want to work with. This makes employee referrals a superior recruiting tool, which results in reduced costs, lower turnover, and a better workforce.
Advertise what sets you apart.
You may believe that your organization is a great place to work. But that doesn’t necessarily equate to recruiting top talent. To differentiate your organization from the competition, showcase what makes you special. Remember, nothing is good or bad until compared to something else.
There are many things to consider when recruiting top talent. For some, pay and benefits are critical. For others, it might be an opportunity for advancement or the chance to develop new skills. Knowing and promoting your organization’s key strengths will make it easier to attract top talent.
Attract talent through social media.
Sites like Facebook, Twitter, and LinkedIn showcase company events, testimonials, and attract and connect with top talent. Use a specialized email address to direct employee referrals to a dedicated hiring channel; such as: firstname.lastname@example.org
Expand your outreach strategies.
To connect with high-level talent and attract the best employees, it’s vital that you expand your sourcing strategies. Ultimately, different skill sets require different methods of outreach. You’ll find your best managers in a different place than your best techs, which means you need to diversify your sourcing approach.
Write a more powerful job description.
The job descriptions you write are a critical means of connecting your business to the best candidates. They highlight the skills and experience you’re seeking, while ensuring that the most qualified candidates apply. This results in less time spent screening unqualified candidates.
Create a great experience for candidates.
Attracting talent extends beyond the interview itself. It’s essential to give candidates a positive view of your company throughout the entire hiring process
Pre-screening allows employers to grade applicants based on their experience skills education and other factors. This lets companies quickly identify the most qualified candidates.
Interview with Confidence.
If you take your time during the planning and recruiting phases of the process, you’ll likely end up with many qualified candidates. Nonetheless, it’s perfectly natural to be a bit anxious when hiring employees. Remember they’re more nervous than you are!
Don’t forget that the interview is just a chance to get to know an applicant and to give them an opportunity to learn more about the role and the business. Consider challenging your candidates with confrontational questions or statements such as “I’m not sure you’ll be a good fit for this job. Can you change my mind?” Doing this reveals how the candidates handle objections and obstacles and can indicate how strong of a salesman they are.
Flaunting the benefits that your employees receive will give prospective applicants an easy way to see how you stack up to the competition, so make sure you list all the offerings on your career page to make sure you’re in the running.
Make a list of what you currently offer employees in the form of benefits and check some competitor sites to make sure you’re staying competitive. This shows any prospective applicants that you’re serious about making sure your employees are taken care of in all aspects.
Sweeten the pot.
When competition for employees is as fierce as it is today, a signing bonus may be what is needed to recruit the high-quality employee you want and keep them from joining the competition.
If you do this, keep two important things in mind; the signing bonus must be large enough to matter and must be contingent upon a certain length of continuous employment. Otherwise, you’ll be running a revolving door as people sign up then take the money and run.
The current job market has never been more competitive. Recruiting top talent and attracting the best employees is an essential means of securing your company’s future. To ensure your company stands out from the crowd, it’s necessary to develop a recruitment strategy that showcases your business in the most appealing light.
By utilizing an employee referral program, employers can better connect with top talent. Employee referral programs encourage existing employees to actively participate in the hiring process. These programs are an excellent means of executing fast and cost-effective hires. Employers need to diversify their outreach strategies and consider academic programs, specialized job boards, or networking events when searching for talented professionals.