Kelly’s Korner – Overturning Turnover
Q Why do you think there is too much turnover in the sales department?
A You have asked a good question and I am glad to answer it based on my own observations, which may not reflect the views of the publisher or the senior management of your dealership.
Here they come . . .
Newcomers to the vehicle retail business are from all walks of life and share the need for a job in order to provide for themselves and their family. Most have no sales background and have never worked in a job where compensation is based solely on performance, i.e., straight commission. Many have been hourly or salaried employees, with the safety net of knowing if they show up to work and do as management instructs them to do, they will receive a paycheck.
There they go . . .
A new sales consultant is typically welcomed aboard by someone who is available to deliver a stack of forms to fill out. When the paperwork is complete, the new hire receives instructions to run down for a drug test and apply for an automobile salesperson’s license at the department of motor vehicles. Hours later, the new salesperson returns to the dealership, fatigued and confused. The one person they met earlier in the day has either gone to lunch or gone home, bringing a premature halt to further introductions.
The floor looks busy with customers, and the new consultant does not know where to start. The old hands simply say, “Move aside and I’ll show you.” The new hire may observe, but is given no opportunity to ask questions and learn from the demonstration.
Sometimes a manager will hand a stack of videos to the new hire and sequester them in the meeting room with instructions to “watch the videos and you will learn what to do.” The problem is that no one ever talks about what is in the videos and why certain sales techniques work.
I have even witnessed managers who belittle new hires for taking an unproductive action that proper orientation could have prevented. When I have asked managers what they hope to gain from browbeating a new salesperson, they usually reply, “Well, that is how I was brought up in the business, and if they can’t take it, they can leave.” And depart they do, leaving the dealership with another missed opportunity to train and retain someone who could have made a contribution.
Turn them around . . .
If you want to solve the revolving door of sales personnel, attend to the orientation, training and compensation of new hires while they learn the dealership’s sales process.
Assign a sales coach/mentor to make the new salesperson feel welcome and important. Map out a training plan that includes performance objectives for which the new hire will be held accountable. Encourage questions, answer them, and monitor the salesperson’s progress every day.
New sales personnel are like a bank account. You must make a deposit before you can make a withdrawal. The deposit is your investment in a comprehensive training period for a sales employee that will return real dividends right on schedule.
The November column will outline a training plan for the new sales personnel.
“Kelly’s Korner”, OIADA Squeaky Wheel Newsletter, October 2006