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Zach (our founder & CEO) recently jumped on the FWRD Podcast again, with Corey Smith from EasyCare (your go-to resource for mastering dealership operations). Their previous episode together centered around keeping your employees engaged, back in 2021.
Corey, being a Fixed Ops Training Pro, and Zach, a tech-forward finance expert, centered their conversation around people, pay plans, and training.
There's one clear agreement in this episode:
The data is telling the dealership world that we need to make some changes to improve retention. Those changes start with a conversation to truly understand employees.
You'll want to listen if the following questions interest you:
- Do you think employee satisfaction as important as customer satisfaction?
- Do you think the majority of your employees (especially Gen Z) would take a pay cut for better work-life balance?
- What do you think are the industry's top 3 factors that influence retention?
- Is your optimal turnover rate 0%?
You can listen to the shortish 28 Minute episode right here:
Or, for the readers, here's a chapter based summarized transcript:
FWRD Introduction
Corey Smith: Welcome to Forward, a podcast by Easy Care, where we protect what moves you. I'm your host, Corey Smith, National Fix Operations Training Manager with Easy Care. Today, we're thrilled to welcome back Zach Spangler from Nimble Compensation. Zach, thanks for joining us again.
Zach Spangler: Absolutely, Corey. I love being on the show. I always learn something new from your podcast, so it's great to be back.
Corey Smith: Can you tell our listeners a bit about yourself and what you've been up to lately?
Zach Spangler: Sure! I'm the CEO and founder of Nimble Compensation. We're automating the commission process for dealership teams, eliminating the need for hours spent in Excel at the end of the month. This allows managers to reclaim their time and empowers employees to perform better by aligning everyone's goals. We've been growing rapidly, working with dealerships from California to Puerto Rico. It's been an exciting journey.
Corey Smith: That sounds fantastic. One thing that really impressed me about your company is how it makes the commission process foolproof. If you don't get the pay plan right in an employee's paycheck, they might start questioning other aspects of the job.
Zach Spangler: Exactly. Today, we'll discuss retention strategies, the importance of aligning values, and ensuring transparency and visibility in the dealership. Our software helps achieve this by cutting processing time by about 80%, leading to positive experiences for everyone involved.
The Current State of Employee Retention in Automotive
Corey Smith: Let's dive into our main topic: employee retention strategies in the automotive industry. What are the key factors influencing retention in this sector?
Zach Spangler: Several studies highlight the main factors. The NADA workforce study shows a 34% annualized turnover at dealerships, which is significant. The Cox Automotive Study identifies three primary reasons for turnover: better pay, more advancement opportunities, and better work-life balance. Addressing these can significantly reduce turnover.
Corey Smith: It's interesting that these are the top factors. You'd think it would be more about pay and commute distance. But you're right, employees want a sense of belonging and for their voices to be heard. The new generation of employees has different needs, like flexible schedules and better benefits.
Zach Spangler: Absolutely. Communication is key. It's more about listening to employees than talking at them. For example, 52% of employees in a global survey said they'd take a 20% pay cut for better work-life balance. This is even higher among Gen Z employees. We need to understand what our employees want and adapt our policies accordingly.
The Role of Compensation in Retention
Corey Smith: That’s a great point. Can you tell us how Nimble Compensation helps with this?
Zach Spangler: Automating commission processes reduces errors and saves time, fostering trust and efficiency. Nimble Compensation helps dealerships achieve this by cutting processing time by 80%. When employees see accurate, timely compensation, their trust in the organization increases, enhancing retention.
Corey Smith: That sounds fantastic. One thing that really impressed me about your company is how it makes the commission process foolproof. If you don't get the pay plan right in an employee's paycheck, they might start questioning other aspects of the job.
Zach Spangler: Exactly. Today, we'll discuss retention strategies, the importance of aligning values, and ensuring transparency and visibility in the dealership. Our software helps achieve this by cutting processing time by about 80%, leading to positive experiences for everyone involved.
Importance of Workplace Culture
Corey Smith: What role does workplace culture play in retaining skilled employees?
Zach Spangler: We often see compensation tied to customer satisfaction. What if we cared about employee satisfaction as much as customer satisfaction? This shift can enhance performance, efficiency, and customer satisfaction. It's about creating a positive work environment where employees feel valued and appreciated.
Corey Smith: I completely agree. Training and career development are also critical. How do these impact employee loyalty?
Zach Spangler: Training is essential. It not only helps employees perform better but also leads to better pay and advancement opportunities. A well-trained employee is more likely to stay and grow within the company. Training programs unlock higher performance and loyalty.
Training and Career Development
Corey Smith: That’s true. Winning is contagious. When employees see the benefits of training and a good pay plan, they're more motivated and loyal.
Zach Spangler: Exactly. Understanding their pay plan and seeing it in action fosters trust and loyalty. It's all about clear communication and listening to what employees need.
Corey Smith: How have retention strategies evolved over the years?
Zach Spangler: As generations change, so do their needs. Leading dealerships listen to their employees and adapt accordingly. Work-life balance and mental health are now more important than ever. Dealerships must evolve their strategies to meet these needs and foster a supportive work environment.
Innovative Retention Strategies
Corey Smith: What innovative retention strategies are you seeing in the industry?
Zach Spangler: Dealerships can explore flexible work schedules, such as a four-day work week for service advisors, to improve work-life balance and retain top talent. By understanding and addressing the diverse needs of employees, dealerships can create a more attractive and supportive work environment.
Corey Smith: What are the challenges faced by dealerships and service centers in maintaining a stable workforce?
Zach Spangler: The biggest challenge is the sheer availability of opportunities for employees. They can easily find new jobs online. Building meaningful relationships and making employees feel valued are crucial. It's about listening to high-performing employees and aligning their needs with dealership goals.
Corey Smith: Regular check-ins and understanding their goals can help. It's a two-way relationship.
Zach Spangler: Absolutely. Informal check-ins where managers listen and align dealership goals with employee aspirations are key. Leaders must be open to feedback and willing to adapt.
Corey Smith: We're almost out of time. What are three key takeaways from this episode for dealership leaders?
Zach Spangler: First, address the top reasons employees leave: better pay, advancement opportunities, and work-life balance. Second, focus on career development, communication, and aligning workplace values with actions. Third, show appreciation for your employees. Acknowledging their efforts goes a long way.
Corey Smith: Great points. How can people get in touch with you, Zach?
Zach Spangler: You can email me at zach@nimblecompensation.com or give me a call. I'm always happy to help.
Corey Smith: Thank you, Zach. This has been a valuable conversation. For more information on Easy Care or to be a guest on Forward, email me at csmith@appcoholdings.com. Thanks for listening, and don't forget to like and subscribe to our podcast.
Want to start the "Improving Retention" conversation?
Improvements are easier than you think- if you're committed to trying and learning. From what we've seen, there's two types of dealership teams: the ones who want to press repeat and ones who seek change to unlock optimal performance. In seeking change, we're getting at "getting out of your comfort zone". We're not talking about rolling out some huge initiative or intensive training- just (consistently) starting the conversation...
- Carve out some time for a 15min work-life conversation from one of your top performers. Put all your assumptions in your pocket, and ask some curious questions:
- Understand how they see success: "What does it take to be successful in your role?"
- Understand how they feel compensated: "If you could change one thing with your pay plan, what would it be?"
- Understand their approach: "How could we rollout a shorter work week?"
- Understand their gaps: "What training would be valuable for you next quarter?"
Keep the conversations going. Craft your learning into a development plan.
What if it doesn't work? What if it does? You can always go back to the old way. Remember the employee driven data is driving the need for change.
