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7 Actions To Onboard Millennials In Your Dealership
Jennifer Suzuki President and Founder | e-Dealer Solutions| Aventura, FL 800.625.1590 | [email protected]
@edealersolution #NADA100
Tom Carney Lead Instructor, Variable Operations |National Automobile Dealers Association| Tysons, VA| [email protected]
#NADA100
Objectives• Update pre and post hire processes to attract and
retain younger sales associates
• Identify pay plans that will motivate and retain
• Prepare consistent training programs that engage your new hires all year long so you promote career growth
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Kahoot.it! Poll (This slide will not be used - it is an indicator for us to go online and use this app. to poll the audience the following questions)
1. What percent of sales consultants reached the 3 year employment milestone?
a. 45% b. 55% c. 63% d. 33%
2. Turnover of Millennials increased at dealerships
to:
a. 25% b. 35% c. 52% d. 70%
3. The number of Millennials hired by dealerships increased to:
a. 20% b. 30% c. 50% d. 60%
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4. Today’s pay plans must reflect the importance of:
a. More base pay and benefits b. Flexible Hours, c. Transparency d.lear Performance Benchmarks
5. When on boarding Millennials you must get them up to speed quickly and turn them into ‘knowledge workers’.
a. True b. False
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“Dealers cannot profitably create and keep customers without a
talented and dedicated workforce.”
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- National Automobile Dealers Association, 2016 Workforce Study
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“Overall every department reported improved revenues and earnings, as well as increased employment. It is this growth that is also
driving an increased need to focus on employees and the role of the workforce.”
- National Automobile Dealers Association, 2016 Workforce Study
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Statistics - Key Points
• Only 33 percent of all sales consultants reached the three-year tenure milestone.
• Salesperson turnover is 67%.
• Average dealership hiring efficiency has been around 65 percent for the last four years.
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Statistics - Key Points• 39 percent of terminations happened within the
first 90 days for sales consultants.
• Greatest increase in Millennial new hires – seven percentage points – was sales consultant.
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Pre Hire Steps
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GM introduces existing team member to new hire via email
Team member calls new hire to welcome, ensure there are no concerns, establish date/time
at dealership to meet staff
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Team member handles new hire email address, work space, logins including computer, iPad, Surface
Pre Hire Steps
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Pre-First Day - New Hire Visits Dealership • New hire introduced by team
member to all department heads and sales team via dedicated meeting
• New hire receives applicable training manual flash drive/dropbox/pdf
• Receives upcoming training schedule that begins on start date
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(School Loans: $42,000)
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• Receives career path plan with goals, standards and benchmarks to include sales goals for first, second and third month
• GM/Manager provides pay plan copy
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Pre-First Day - New Hire Visits Dealership
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New Hire First Day
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Welcome gift ready on new
hire workspace
Team member welcomes and introduces work space,
business cards, email, logins “cheat sheet”, lunch
room, conference room, bathrooms
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New Hire First Day
General Manager introduces new hire to sales team in one-on-
one meeting
General Manager meets with new hire to review
growth plan, next 30 day goals, work
schedule, expectations,
scheduled time of sales meetings
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New Hire First Day
Start certification/online product training modules
HR website/ complete online
forms
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Pay Plans• Performance based and transparent
• Salary + Bonus / Commission + Bonus
• Year - end bonus
• Retention bonus
• Tuition student loan subsidy
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Sales Manager’s Pay Plan – Gross and Volume Driven
Manager 3.5% = <100 Units 3.75% = 100 Units 4.00% = 130 Units 4.25% = 160 Units 4.50% = 190 Units 5.00% = 200 Units 5.50% = 210 Units
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
26% retro to 1st unit27% retro to 1st unit28% retro to 1st unit
30% retro to 1st unit29% retro to 1st unit
Salesperson Pay Plan
Sales Manager Pay Plan
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Pay Plan Recap (aka, the ‘Millennial Pay Plan’)
• Pay plan in place since April 2015 • 3 teams of 6 currently @ 60-75 sales per month per team. Adding
additional team in February. • Recent Modification: Minimum of 24 units sold in 90 days if not
their salary goes to $1500 month for the next 90 days. • Average sales consultant earns $5500 / month ($66k / year) • Team leaders making between $90k and $110k • 9 month turnover is 2
Example 2
What has this pay plan accomplished?
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Salary & Monthly Bonus Pay Plan Example 3• Salary: $600/week [$31,200/year] + Monthly Bonus Matrix
Sales Schedule: • 42 Hour Work Week
• Example: (Wednesday shown as Day Off in this example)Monday 9:00am – 8:00pm (1 hour lunch) 10 hoursTuesday 9:00am. – 5:00pm (1 hour lunch) 7 hoursWednesday OFFThursday 9:00am – 8:00pm (1 hour lunch) 10 hours Friday 9:00am – 6:00pm (1 hour lunch) 8 hoursSaturday 9:00am – 5:00pm (1 hour lunch) 7 hours
• 3 set teams with 1 Saturday off per month • A Team: off Tuesday with 1st Saturday off • B Team: off Wednesday with 2nd Saturday off • C Team: off Thursday with 3rd Saturday off • **The Saturday off replaces weekday off.**
• Company vehicle and/or demo allowance are not included in this pay plan offering.
• Note: All paperwork, titles and monies due (i.e. deposits, COD, registrations) must be completed and turned into the sales mgmt. office for bonuses to be paid.
Monthly Bonus Matrix
• Volume Bonus:
• 10 Unit level requires 3 used vehicles
• 12+ unit levels require 5 minimum used vehicles
• Gross Profit Bonus: • Requires a minimum $2,200 Used Vehicle Front-
End GPU
• CSI Bonus • See Carbone CSI President’s Club Bonus criteria
Sold Units
Volume Bonus
Gross Profit Bonus
CSI Bonus Total Bonus
10 $400 $150 $250 $800
12 $500 $250 $250 $1,000
14 $750 $500 $250 $1,500
16 $1,000 $750 $250 $2,000
18 $1,250 $1,000 $500 $2,750
20 $1,500 $1,500 $500 $3,500
22 $1,750 $1,750 $500 $4,000
24 $2,000 $2,000 $500 $4,500
26 $2,250 $2,250 $500 $5,000
28 $2,500 $2,500 $500 $5,500
30 $3,000 $3,000 $500 $6,500
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Draw:
• $405.00 per pay period.
Commissions:
New Vehicles: Used Vehicles:
20% with a $350.00 pack, 20% with a $750.00 pack,
at minimum $100.00 flat at minimum $100.00 flat
Upgrade Program commissions:
New Vehicles: $100.00 flat Used Vehicles: $225.00 flat
Monthly Demo Program:
• Employees will receive an allowance of $400.00 per month or company demonstrator vehicle.
• Employees will qualify for monthly Demo program eligibility when employee has sold a total of 12 units. Employee must maintain a minimum of 8 units sold per month.
• Employee is not eligible for the Demo Program in any month in which he/she does not sell at least eight (8) units.
• If Employee does not sell at least eight (8) units for two (2) consecutive months, he/she will become ineligible for the Demo Program (losing the monthly demo bonus or demo vehicle privilege). If the Employee loses eligibility in the Demo Program, he/she must sell 12 units to qualify for eligibility.
Draw / Weekly Commission / Monthly Bonus Pay Plan
Example 3
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End of Month Bonus:
Unit Bonus:
8 units = $500
10 units = $1000
12 units = $1200
14 units = $1400
16 units = $1600
18 units = $1800
20 units = $2000
21+units = +$100.00 per unit
Note: All paperwork, titles and monies due (i.e., deposits, COD, registrations) must be completed and turned into the sales mgmt. office for commissions to be paid.
Draw / Weekly Commission / Monthly Bonus Pay Plan
Example 3
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Career Path Goals
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Level 1: Apprentice 0-90 days of employment. Must complete the following to go up to Level 2• Achievement 1: New Hire Training Completion• Achievement 2: OEM Product Training Completion• Achievement 3: Sell 12 Vehicles (within the first 90 days)• Achievement 4: “Play” (work) for at least 60 Days (within
the first 90 days)
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Career Path Goals
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Level 2: Associate 91-180 days of employment. Must complete the following to go up to Level 3• Achievement 5: Phone Skill Training Completion• Achievement 6: Used Vehicle Selling Skills Completion• Achievement 7: OEM Product Certification• Achievement 8: Sell 25 Vehicles since leveling-up to Level 2• Achievement 9: “Play” (work) for 6 months in a row
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Training Program and Topics35
Week One Three Aspects to Convey When Communicating
Week Two How to Review Internet Leads Before Contacting
Week Three Leaving Voicemail MessagesWeek Four Outbound Phone Call - Introduction
Week Five Outbound Phone Call - Present the Value in you and Buying Experience
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Week Six Outbound Phone Call - Identify Hot Buttons, Deal Breakers, Vehicle Flexibility
Week Seven Outbound Phone Call - Tie the Trade Appraiser to the Meeting Time
Week Eight Outbound Phone Call - Set Firm Appointments
Week Nine Evaluate Outbound Phone Calls
Week Ten The Inbound Phone Call Greeting
Training Program and Topics
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Week Eleven Obtain Prospect Contact Information on Phone Up
Week Twelve Evaluate Inbound Phone Calls
Week Thirteen Effective Chat Techniques
Week Fourteen Documenting Notes in CRM
Week Fifteen Appointments and the CRM
Training Program and Topics
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Career Path Goals
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Level 3: Consultant 6 – 12 months of employment. Must complete the following to go up to Level 4• Achievement 10: Ecommerce Training Completion• Achievement 11: Advanced Selling Skills Training Completion• Achievement 12: Self-Improvement Initiative• Achievement 13: Mentor a New Hire for 30 Days• Achievement 14: Sell 60 Vehicles since leveling-up to Level 3• Achievement 15: “Play” (work) for 1 Year
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Level 5: Master 2/3 years of employment. Would then be open for more advance training• Achievement 20: Financial Services Training Completion• Achievement 21: Desking Training Completion• Achievement 22: Sales Manager Training Completion
Career Path GoalsLevel 4: Professional 1 – 3 years of employment. Must complete the following to go up to Level 5• Achievement 16: Master Sales Skills Course Completion• Achievement 17: Double Down on Self-Improvement• Achievement 18: Sell 144 Vehicles since leveling up to Level 4• Achievement 19: “Play” (work) for at least 2 years
Please visit the NADA Pavilion in the Expo Hall for
information on accessing electronic versions of this
presentation and the accompanying handout
materials, and to order the workshop video recording.@edealersolution
#NADA100
Jennifer Suzuki President and Founder | e-Dealer Solutions| Aventura, FL 800.625.1590 | [email protected]
Tom Carney Lead Instructor, Variable Operations |National Automobile Dealers Association| Tysons, VA| [email protected]
7 Actions To Onboard Millennials In Your Dealership