What is the next crisis facing the automotive industry? It is the ability to attract good people to work at our dealerships - and to address why young people have little to no desire, or reason to want to work at an automotive dealership. Why?
* Compensation plans appear to be competitive - but making good money is either unattainable, or non-sustainable. Hiring managers put together a pay plan where it would appear the sales rep could make a lot of money IF they sell a very large amount of cars, or IF they sell them with high gross markups that are next to impossible to get in a highly competitive market unless you have a "lay-down"
* The "non-sustainable" is a bigger issue. When the sales rep does have a great month or two in a row where they make very good money, what happens? Their pay plan is "changed" so that they cannot continue to make that amount. Dealerships manage their sales reps with the "carrot on a stick" approach. Sell them on that high salary (the carrot) if they sell a large amount of cars or have very high gross, BUT always keep the carrot in front of them. If they can reach that carrot, then change the pay plan and keep it out there...
* Why does this happen? Everyone has their hand in each other's pocket... An environment is created where people think about themselves and that's it. The sales rep does not trust his managers, does not trust his prospects, and does not trust the other sales reps (skating). "What have you done for me today" is the driving mantra in managing sales reps.
Little money, high stress, an environment where people are cautious to trust anyone - and we have a big problem attracting and retaining good people in our industry. I believe this is the next major crisis facing our industry - how can we change things for the better?
* Compensation plans appear to be competitive - but making good money is either unattainable, or non-sustainable. Hiring managers put together a pay plan where it would appear the sales rep could make a lot of money IF they sell a very large amount of cars, or IF they sell them with high gross markups that are next to impossible to get in a highly competitive market unless you have a "lay-down"
* The "non-sustainable" is a bigger issue. When the sales rep does have a great month or two in a row where they make very good money, what happens? Their pay plan is "changed" so that they cannot continue to make that amount. Dealerships manage their sales reps with the "carrot on a stick" approach. Sell them on that high salary (the carrot) if they sell a large amount of cars or have very high gross, BUT always keep the carrot in front of them. If they can reach that carrot, then change the pay plan and keep it out there...
* Why does this happen? Everyone has their hand in each other's pocket... An environment is created where people think about themselves and that's it. The sales rep does not trust his managers, does not trust his prospects, and does not trust the other sales reps (skating). "What have you done for me today" is the driving mantra in managing sales reps.
Little money, high stress, an environment where people are cautious to trust anyone - and we have a big problem attracting and retaining good people in our industry. I believe this is the next major crisis facing our industry - how can we change things for the better?
