Spring 2016 issue of Horizons

Auto Dealer Trends Similar to trucking companies, dealerships often struggle with high turnover and retaining top talent. More often than not, we see members of the sales team and the service department leave one dealership for another. As a result, management is often challenged with identifying top talent in a short time frame and then finding new ways to keep them at their dealership. Oftentimes management will change up pay plans for certain individuals as a way to incentivize loyalty. However, we have rarely witnessed this being an effective tool in retaining talent. Often these changes influence others in the sales team to explore similar employment options to increase their pay. This can lead to increased sales to meet metrics, but at lower margins. Rather than having multiple pay plans for each employee, we suggest establishing a single pay plan at the beginning of each year for all employees and leave the plan unchanged until the following year. This helps keep consistency amongst the sales team and reduces the stress in the accounting department in having to calculate different pay plans and bonus structures on a monthly basis. Additionally, when creating the plan engage your sales team to be part of the process. During the planning process, dealerships should determine annual sales goals for new and used vehicles, then break that down by month. Then determine a sales goal for each team member for the next 12 months and design a compensation plan associated with those goals. For dealerships, determine what your annual sales goal for new and used vehicles should be and then break that down by month.

concerns and newer federal regulations limiting hours available for work.

With the improving job market, many drivers are able to find jobs closer to home that do not require them to be away from their families as much. Additionally, with some of the new federal regulations limiting hours of service, some drivers are not able to increase earnings or earn more than they could in other industries. While the nature and business model of the industry will not change, trucking companies still need employees to drive loads from point A to B. It is up to each business owner to identify what employees are looking for and what can be offered to attract and retain the younger generation of truck drivers. Business owners should spend time with employees and learn what motivates them. For example, offering 401(k) benefits with a company match or profit sharing may be important to some of your workforce. However, if you are trying to recruit millennials facing $20,000 in college debt, a 401(k) plan may not be very beneficial. They are more concerned with being able to pay off debt rather than starting to save for their retirements that are decades away. During October 2015, while attending the Missouri Trucking Association’s Annual Convention, RubinBrown witnessed the impact some associations are making with the next generation and how they are marketing the industry to high school, trade school and even college students to increase the pipeline of future drivers. While the actions that are currently being done by these associations is meaningful, they need the full support of each business owner to help promote the industry and keep the next generation inspired.

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