When it comes to making smart strategy decisions for your dealership, there are two key areas of focus you can’t ignore: staffing and process. You’re likely investing in better technology. And, you’re building a better customer experience, focusing on digital retailing and virtual sales and service options. In fact, by the end of 2020 and heading into 2021, your dealership has done (and is doing) so much to overhaul the way your business runs, you might not even look like the same dealership anymore. But, here’s why optimizing human capital management and developing process improvements that drive operational efficiencies will help you level-up your dealership’s game-plan.
“Even before the pandemic, employee turnover was cited as a major problem and a pain-point for dealerships. Twenty-percent of dealership staff said they were likely to look for another job in the next six months.” – Tyler Anderson, Dir. Business Development, Dealertrack DMS.
Solving Key Human Capital Challenges
Between hiring, onboarding, training, and remote-work management, dealerships are facing difficult challenges within the people-side of the business. Some of these issues are hardly new, while others are unique to the current changes taking place to the retail environment. “Even before the pandemic (according to a Dealership Staffing Study), employee turnover was cited as a major problem and a pain-point for dealerships,” says Tyler Anderson, Director of Business Development for Dealertrack DMS. “Twenty-percent of dealership staff said they were likely to look for another job in the next six months.” The problems for dealers and their staff are often deeply rooted within the varying technologies and systems that employees must constantly learn, and re-learn, on the job. Anderson notes, in a recent webinar, that dealership employees often face redundant entry points for data between multiple, disconnected solutions creating the opportunity for manual errors. By bringing together best-in-class technologies and fully integrating your dealership’s human resource and payroll solutions, is a giant leap in the right direction. (Watch the full webinar below to learn how companies like Netchex and Dealertrack are working together to offer new, integrated solutions.)
“In the midst of these transformations, dealerships still have to manage these processes—quite frankly—to succeed. Or, they’re going to fail…Reporting doesn’t go away, it becomes paramount.” – Randy Wilson, Dir. Performance Management, Dealertrack DMS
Without Operational Process, Organizations Will Fail
Among the many changes dealerships have seen this year are the various services offered to customers who don’t want to visit your store in-person. In fact, according to a Cox Automotive COVID-19 Consumer and Dealer and Impact Survey, two out of three buyers would prefer to complete 100% of the buying process online. Between online shopping and the need for remote service options, dealers are reinventing their standard operating procedures. This means that new team members, returning staff, and training standards must all be re-calibrated to keep your business running smoothly. “Leveraging your technology is crucial to your success,” explains Randy Wilson, Director of Performance Management at Dealertrack DMS. Wilson’s team of Performance Managers work one-on-one with dealer partners and oversees the rapid digital transformation that has taken place this year. But, Wilson cautions, without establishing process improvements to achieve operational efficiency, your dealership’s new online business model could be in peril. “In the midst of these transformations, dealerships still have to manage these processes—quite frankly—to succeed. Or, they’re going to fail…Reporting doesn’t go away, it becomes paramount,” says Wilson.
To learn more about Dealertrack’s integrated Payroll, powered by Netchex and Performance Management for DMS, watch the recorded webinar below.
Sources:
2020 Cox Automotive COVID-19 Consumer and Dealer Impact Study
2019 Dealer Impact Study: https://www.coxautoinc.com/learning-center/2019-dealership-staffing-study/
