Want to Stay Profitable in Today's Competitive Market? Look at How You Hire - AutoSuccessOnline

Want to Stay Profitable in Today’s Competitive Market? Look at How You Hire

Dealerships today face many challenges when it comes to maintaining profitability. Profit margins for both new and used vehicles are eroding and, at the same time, personnel-related costs are on the rise.

Dealerships today face many challenges when it comes to maintaining profitability. Profit margins for both new and used vehicles are eroding and, at the same time, personnel-related costs are on the rise.

So how can your dealership maintain profitability at such a challenging time? To get started, we’ve pulled together several key ways your dealership can improve your people operations to save money and increase profitability.

Attract Quality Candidates While Saving on Sourcing Costs
Make a list of the various channels you use to source job applicants and the associated costs. You might be using several job boards, social media, outside recruiters, your dealership website and more. But the most critical channel is your dealership’s career site.

When comparing job board costs to a career site — which has better SEO value and is a great destination to showcase your employment brand — you get a much higher ROI when you invest in your own careers page. In fact, the average cost per hire for a career site is nearly seven times less than job boards.

Career sites are a top source for attracting qualified candidates because job seekers who are qualified and excited to join your team will take the extra time to learn more about your dealership rather than simply clicking “apply” on a job board.

Beyond building a strong career site to attract quality candidates, you should have a strong understanding of which sourcing channels are driving candidates and which channels aren’t. Once you have transparency, you can reduce sourcing costs without sacrificing overall quality of hires.

Add Profitability with Standardized Hiring Process
According to our research, of the 26 days it takes dealerships to hire a new employee on average, nearly half the time — 10 days — is spent waiting for someone to review the application after it is initially submitted.

You wouldn’t let a customer lead go unanswered for 10 days and you should take the same approach to hiring — or your dealership will lose gross profit due to lost productivity during the time your open roles go unfilled.

Given the record-low unemployment rate and sales and fixed ops roles in high demand across dealerships, waiting to review and respond to applicants will likely cost you top talent.

A standardized hiring process should include prescreen surveys, along with interview guides, integrated assessments and automated background and reference checks, helping your team save time.

Challenges associated with declining vehicle profit margins, increasing personnel costs and competition for top talent show no signs of slowing down in retail automotive. With a more strategic, efficient approach to your people operations, your dealership can save money by reducing your candidate sourcing costs and add profitability by reducing your time to hire.   

Click here to view more solutions from Adam Robinson and Hireology.

You May Also Like

The Most Powerful Skill in Selling

If you can’t listen to what your customer is saying, how do you really know that you’re solving their needs?

I was out looking to buy something I needed for a weekend project recently, and I was once again reminded of how people lack the most basic skill in selling — the ability to listen! You may be thinking, “How is that the most powerful skill?” Most of you would think that there are several selling skills that are higher on the list than listening. 

Are You Ready to ROCK in 2023?

It’s time to meet today’s Vehicle Care RockStars, and we are asking you to help get us backstage.

The End is NOT Nigh

Car buyers abandon digital tools when the process gets too complex — easy-to-use ecommerce capabilities are essential.

If It’s Not Broken, Break It

Recon software provides the data to manage and motivate by the numbers.

In the Passenger Seat

I recently found myself in the automotive retail passenger seat after an unfortunate accident this summer, and I had to fight off anxiety thinking of purchasing a new vehicle in the current automotive market.

Other Posts

Is the Sky Falling, Chicken Little?

Don’t let anyone fool you into settling for mediocrity in the showroom or online. 

Retain Staff with Career Development Training

If you are serious about recruiting top talent and improving employee retention, create a career development program.

Merchandising Strategies from Online Disruptors

Your online merchandising needs to rival Carvana’s. Here’s how to generate that emotional attachment.

The Game Plan Has Changed

Winning consistently never happens by accident; it’s time to focus on the fundamentals and get your game plan in order.