2. The People Profit Connection
Did you know…..
The average dealership spends$2.5 Million
on payroll (NADA)
That the cost of a bad hire is 1.5 to 2 x the
annual salary?
That companies spend on average $1700
per employee to comply with workplace
regulations?
That harassment cases cost on average
– Pre-trial settlements: $300,000.
– Litigation judgments: $1.8 Million
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3. The People Profit Connection
Did you know…..
That on average 35% of operating expense
is attributed to employee compensation
and benefits?
The average implemented employee
suggestions saves a company $6,224 in
operational expenses according to the
Employee Involvement Association
The typical worker wastes about 2 hours a
day- and the cost is a staggering $759
billion a year nationwide! (SHRM)
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4. Hire, Retain, Engage
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Engage
Retain
Hire
Select the best because you have a choice
Keep the best with a good working environment
Engage to maximize productivity
5. Hire the right person for the right job
• Dealerships report they spend less than 4
hours in the hiring process*
• Cost of bad hire is 2 to 3 times the annual
salary
• 95% of a managers time is spent on 5% of
the employees
Bad hires cost you money, and even worse they keep
you up at night!
*survey of 268 dealerships
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6. Are you using the right tools for the job
• Effective job application form
• Conduct a behavioral interview
• Personally conduct references
• Perform background check
• Use a scorecard to make objective decision
If the answer to any of these questions is anything
but yes- then you are taking on more risk than is
necessary and increasing your chance of making a
bad hire
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7. The Five Tools
Effective Application
Behavioral Interview
Reference Checking
Background Checking
Candidate Scorecard
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8. The Five Habits
Follow a defined process
Use the five tools
Always be recruiting
Include others in the process
Never talk yourself into saying yes
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9. Hire the right person for the right job
• Using the five habits and the five tools will:
– Establish a proven method to reduce the risk
of making a bad hire- do what works!
– Save time by using the five tools to screen out
poor fit early in the process- don’t waste your
time!
– Reduce the time you spend on management by
hiring the right person in the first place- spend
your time on your top employees!
Time is money, can you afford to make poor
hiring decisions?
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10. Retaining Employees
• Spending time on retention is good
business
– Reduces training
– Improved productivity
– Creates an attractive workplace
• Retaining poor employees is bad business
– Performance reviews
– Disciplinary action plans
Remember that 95% of a manager’s time is
spent on 5% of the employees, but your goal is
to reverse this equation in your dealership
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12. Employees
Employees align what they want — and what the
business needs— and then take action to achieve both
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Ownership
Clarity
Action
13. Managers
Managers understand each employees talents and skills
and match to the businesses objectives — while at the same
time creating personal, trusting relationships
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Coaching
Relationships
Dialague
14. Executives
Executives demonstrate consistency in words and
actions, communicate a lot, and align business practices and
behaviors throughout the organization to drive results and
engagement.
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Trust
Communication
Culture
15. Cultivate an Ownership Mentality
• Education
– How does the company make money
– How can do I impact or take away value
• Measure
– Key Performance Indicators
– High Visibility/High Accountability
• Incent
– Self funding incentive plans
– Align behavior to financial objectives
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17. Employee Costs
• Average Costs of an Employee
– Salary
– Benefits
• Percentage of Revenue by Employee
• Employment Costs as a % of Operating Expenses
• % of time lost to absences
• Average overtime per employee
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18. Employee Turnover/ Retention
• Total replacement hires per year
• Total cost to hire
• % of new hires achieving 6 months
• % of new hires achieving 12 months
• % of new hires achieving satisfactory appraisals
• Cost of training per employee
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20. Workplace Compliance
• Total number of complaints
• Total number of lawsuits/audits
– cost of defense as a % of revenue
• Lost time to accidents
• Training
– Measure impact of training year to year against
lawsuits and complaints
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21. Maximizing the People Profit Connection
• What makes a company attractive to candidates
makes it easy to retain employees
• Use the five tools and five habits to hire the right
person for the right job
• Spend time upfront to hire the right person, it is a
good use of your time
• Don’t spend your time on the bottom 5%, spend
your time on the top 25%
• Measure KPIs for HR annually, can’t measure,
can’t improve
• Ownership mentality makes all the difference
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