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How Human Resources Works for Auto Dealerships


Managing an auto dealership is a lot like managing any other business, but in most cases, your employees are not truly your employees. What does this mean? Many managers consider an HR program a luxury that only large-scale businesses can afford, but that is wrong. The turnover rate in auto sales is high, and with the right employee management and motivation strategies, loyal sales representatives can make all the difference in the success of your dealership. What should you know about HR to start improving your services? Here are some things to start with.

  • Assess your current workforce. Who are your superstars? What traits do they possess that make them good at what they do? This can be the first step to creating a hiring plan for more individuals who will earn money for themselves and your dealership. Beyond that, it is also good to understand who is satisfied with the job and who is feeling burned out or unmotivated.
  • Calculate the cost of employee turnover. Turnover is common in car dealerships. Because income is based on commissions, the job can be demanding, and not everyone is cut out to do it long term. But turnover costs your business money, not just in lack of sales but also in the process of hiring again.
  • What benefits do you offer employees? People often think that commissions are enough for a sales professional, but they aren’t. And you also have individuals working in your service, collections and accounting departments. What can you provide that your competition can’t? How do you create employee loyalty?
  • Provide proper training and onboarding. There is more to an auto dealership than just moving inventory. You need to ensure that each employee is trained in the duties of each job and given an insight into what it is like to work with you and the rest of your team. Demonstrating your company culture is just as important as teaching the job.
  • Create an employee handbook. To this end, it is also critical that you have your policies and procedures in writing. This is to safeguard your business and to give your staff a better understanding of your company’s requirements. You can work with a professional to ensure that everything is compliant with your state’s employment laws.
  • Develop an effective review process. People often think annual reviews are something used only in large corporate environments, but they are effective across all levels of employment. Without evaluating where each employee stands, it can be difficult to give constructive feedback or promote employee loyalty.