- May 20, 2019
- By Fraser Brown
- In Recruitment
In a market where there is increasing pressure on dealer margins and with a backdrop of high employment levels*, getting recruitment decisions right the first time is crucial if dealers are to avoid wasted resources and high staff churn.
Staff turnover in the motor industry has always been problematic. Is it time for motor dealers to take a different approach to recruitment?
Why do dealerships get automotive recruitment wrong?
Dealerships tend to suffer from time pressure and limited resources, and as such find themselves prioritising filling a position ASAP at the expense of ensuring they find the right candidate for the role and the company.
A lack of time and resources, limited in-dealership recruitment experience, and the failure to check skills/ references of candidates often leads to poor recruitment decisions.
The cost of getting recruitment wrong
Many employers fail to recognise the true cost of making the wrong recruitment choices. The £ cost of getting a recruitment decision wrong is potentially huge.
According to research by Oxford Economics and Unum, the average cost of turnover per employee (earning £25,000 a year or more) is £30,614. It can also have a more wide-ranging detrimental impact on staff morale, turnover of other staff, and even business reputation. When calculating the true cost of a poor recruitment decision, the following should be considered:
– recruitment fees and other costs
– wasted time
– any training costs
– lost productivity
– potential employment termination costs
Can you really afford to keep doing what you’ve always done with regards to recruitment?
Our Managing Director Fraser Brown says:
“It’s so important for dealers to really think about their approach to recruitment, especially in the current market, when saving money, or simply not wasting money is crucial. Dealers should be looking at implementing a dynamic selection process, that they use consistently, that will enable them to make more thorough and informed recruitment decisions.”
Having worked in motor retail, we fully understand the challenges dealerships face with automotive recruitment. Our innovative recruitment package is specifically designed to respond to these issues head-on. It offers dealers an easy, value-driven solution that finds candidates that fit the culture of the recruiting dealership and that have the right skills and behaviours to really excel in the role, regardless of their industry experience.
* The Office of National Statistics states that the UK employment rate was estimated at 76.1%, higher than for a year earlier (75.4%) and the joint-highest figure on record.
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