Human Capital Management for Dealerships
Most dealerships assume that as long as they keep selling cars that they will do ok. But running a dealership is more than just sales. The heart of every company is the workforce. Human capital management is very important, even for dealerships, since employees are the direct contributors to a business’ success. Here are a few reasons why it’s important for dealerships to invest in human capital management.
Reduce Employee Turnover
In the United States, the average turnover rate is at 30.5%, with over 1 over 5 workers choosing to leave voluntarily each year. This is especially true for a lot of dealerships that choose to employ workers on a contractual basis.
Employee turnovers can have a lot of costs to someone running a dealership. Apart from the more direct costs like replacing the lost employee as well as the training costs, there are other consequences to employee turnovers that are less noticeable but just as impactful. Examples include lost productivity, loss of knowledge, and even a reduction in morale in the workforce.
Reducing employee turnover in dealerships can be done by turning to preventive measures like hiring the right people for example. It also helps if dealerships focus on employee retention by establish competitive a competitive benefits package. While there are many ways to do it, asking for assistance from benefit advisors will help determine the right benefits package that works for dealerships.
Prevent Occupational Fraud
Another way that dealerships can lose out on higher revenue is through occupational fraud. Misuse of company assets, theft, or misrepresentation of the company’s name can all lead to disastrous consequences that will hurt a dealership’s brand, reputation, and customer base.
Preventing occupational fraud can be done by conducting employee training properly, and conducting periodic revisits of the dealership’s code of conduct. Doing so will avoid damage to the dealership and its business.
Managing a workforce in dealerships is done in the same way as with other types of businesses in that it really pays to avoid complacency. But what makes complacency a really bad thing to have in dealerships is it affects the bottom line. When employees start saying “I don’t know” or “I don’t care” a lot when dealing with upper management or even with customers, sales may drop, customer complaints may increase, and employee satisfaction could go down.
Reducing complacency in a dealership can be easily done by creating a culture of accountability in the workforce. By holding employees accountable to their actions, this will make them less susceptible to haphazard work. Implementing a rewards system for employees who exhibit the desired behaviors will also spur other workers to act the same.
Prepare for Workplace Accidents
Even with dealerships, workplace injuries and accidents can happen. This can cause a headache on everyone involved, especially the injured party. Filing workers’ compensation claims are never fun, and since it’s nigh impossible to prevent something like workplace accidents, the next best thing to do would be to prepare for it.
Make sure that the work environment is as accident-proof as possible by checking for potential hazards like faulty sockets, frayed wiring and other environmental hazards is a simple but effective way to prevent accidents and injuries in a dealership.
Hire the Right People
A lot of problems concerning human resources in a dealership usually arise because of one reason: the wrong people were hired to work. Lack of experience, commitment and culture-fit are the reasons why employees in a dealership perform poorly or quit their job so soon.
By choosing the right people to do the job, employee retention increases, profits will go up, and customer satisfaction will soar. Dealership staff are more than willing to go the extra mile with a more competent skill base.