ATTRACT and RETAIN Top Employee Talent

Transcription

1 ATTRACT and RETAIN Top Employee Talent Kathleen Korpita Vice President, Global Talent Management & Diversity Cox Automotive Atlanta, GA

2 2 The views and opinions presented in this educational program and any accompanying handout material are those of the speakers, and do not necessarily represent the views or opinions of NADA. The speakers are not NADA representatives, and their presence on the program is not a NADA endorsement or sponsorship of the speaker or the speaker s company, product, or services. Nothing that is presented during this educational program is intended as legal advice, and this program may not address all federal, state, or local regulatory or other legal issues raised by the subject matter it addresses. The purpose of the program is to help dealers improve the effectiveness of their business practices. The information presented is also not intended to urge or suggest that dealers adopt any specific practices or policies for their dealerships, nor is it intended to encourage concerted action among competitors or any other action on the part of dealers that would in any manner fix or stabilize the price or any element of the price of any good or service.

3 Talent Tops the List of CEOs Priorities 3 Rising Expectations for Business Impact CEOs Focused on Talent Development Percentage of CEOs who report, creating a skilled workforce is a priority at their organization over the next three years Rising Expectations for Business Impact Percentage of heads of L&D who report growing expectations from the line for business impact 57% 77% 64% Source: The Corporate Executive Board Company

4 60% of Employees Decide to Stay or Go 4 Within The First 6 Months Source: The Corporate Executive Board Company

5 Margins have Contracted 5 (PUBLICLY- TRADED DEALERSHIP GROUPS) 12.0% 11.0% 10.0% 9.0% 8.0% Equates to $60 Billion a year for the Industry 70% of your gross profit margin on average goes to payroll Source: Company filings, DrivingSales 2015 Sales-weighted average for KMX *, AN, PAG, SAH, GPI, ABG, and LAD. *KMX shifted forward one month to correspond with calendar quarter

6 6 Section divider THE CHALLENGE

7 Employee Turnover is on the Rise 7 36% 39% TO Source: NADA Dealership Workforce Study 2015

8 Retention Rates Declining 8 50% 47% Only 33% salespeople reach 3-year mark 72% Sales turnover Source: NADA Dealership Workforce Study 2015

9 $15K Per Person to Hire at Dealership 9 $1.08 Million LOST Source: Hireology

10 Our 2014 Cost to Rehire $878K 10 $20 Million LOST Source: Aberdeen Consulting Group 2014

11 11 Section divider REVERSE THE TRENDS REVERSE THE TRENDS

12 Learning Objectives Attract high potential talent and become a destination employer 2. Design a recruiting and hiring process to reflect your culture 3. Retain, engage and empower employees

13 What s Your Brand Culture? 13

14 Our Key Differentiators 14 Work Life Integration Community Relations Diversity & Inclusion Top-down Transparency Innovation

15 Culture Example: George Matick Chevrolet Redford, MI 15 Focused on environmental footprint & green energy Community Involvement

16 Culture Example: Del Grande Dealer Group, Northern CA 16 Compensation model Career growth Strong in-store processes Employee surveys and feedback shape culture

17 Loyal & Happy Employees + Loyal & Happy Customers = PROFITABILITY 17

18 18 1. ATTRACT HIGH POTENTIAL TALENT AND BECOME A DESTINATION EMPLOYER

19 Build Talent Strategy for the Future 19

20 Emerging Millennial Workforce Mindset 20 Career Purpose and Path Real World Marketable Experience Pay Stability Work/Life Balance Diversity Source: Hireology

21 The best dealers do not and will not offer jobs to current and future employees; they offer careers Dr. Keith A. Pretty and Dr. Tim Nash 21

22 Millennials Are Eager to Make a Difference 22 63% of Millennials Give to Charities 43% Actively Volunteer Source: The Deloitte Millennial Survey, 2014

23 Organizations Must Foster Innovative Thinking 23 78% of Millennials were strongly influenced by how innovative a company was when deciding if they wanted to work there. Source: The Deloitte Millennial Survey, 2014

24 And Don t Forget Females 80% of female car buyers influence vehicle purchase decisions 24 but only 18.5% of dealership employees Source: NADA Dealership Workforce Study 2015 & Autotrader Car Buyer of the Future

25 25 2. DESIGN A RECRUITING AND HIRING PROCESS TO REFLECT YOUR CULTURE

26 Need Assessment Process Strategy 26 Candidate + employee experience Value proposition + onboarding must have organizational consistency Organizational strategy local customization

27 Recruiting & Hiring Process Must Reflect YOUR CULTURE 27

28 Selection Process Based on QUALITIES 28 Hireology s 4 Super ELEMENTS Source: Hireology

29 The 4 Super-Elements 29 ATTITUDE Source: Hireology

30 The 4 Super-Elements 30 SENSE OF ACCOUNTABILITY (internal vs. external locus of control) Source: Hireology

31 The 4 Super-Elements 31 PAST RELATED JOB SUCCESS Source: Hireology

32 The 4 Super-Elements 32 CULTURE FIT Source: Hireology

33 Consistent Recruiting Process Eliminates UNCERTAINTY 33 Source: Hireology

34 Conduct In-Depth Phone Interviews 34 Source: Hireology

35 and Comprehensive Behavior-Based Interviews 35 Source: Hireology

36 Leverage Candidate Scorecards at Each Step of the Interview Process 36 Source: Hireology

37 Perform Background Checks, Employment Verifications and Reference Checks 37 Source: Hireology

38 38 3. RETAIN, ENGAGE AND EMPOWER EMPLOYEES

39 It Starts Immediately 39

40 Development and Recognition Programs 40

41 Environment & Experience 41

42 Ongoing Conversational Reviews 42 (vs. traditional formal review process)

43 43 KEY TAKEAWAYS

44 What We Discussed Today Attract high potential talent and become a destination employer 2. Design a recruiting and hiring process to reflect your culture 3. Retain, engage and empower employees

45 Short-term Opportunities 45 ATTRACT Commit to the issue as a management team Take a critical look at your current application process and selection criteria; does it align with your business goals in the next 1-3 years? Ensure you have process consistency Establish an onboarding program that starts immediately after recruitment Consider a partner or software to help you attract the right people RETAIN Understand the perceptions of the culture that currently exists and note any differences to what you want to represent Set goals with your team members on an individual and team basis Take time for ongoing conversational reviews with each team member

46 Long-term Opportunities 46 ATTRACT Utilize a system or process for talent acquisition Don t limit your application pool; adjust your business operation to speak to the needs and desires of Millennials and females team members Create a mobile optimized career page on your dealer website RETAIN Confront any off culture perceptions Place emphasis on individual development & career opportunity through development experiences and programs Establish formal new hire training process that includes understanding of their career development opportunities

47 ATTRACT and RETAIN Top Employee Talent Kathleen Korpita Vice President, Global Talent Management & Diversity Cox Automotive Atlanta, GA 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.