X-ercising Your Business
Shortly after I entered this industry, my first general manager Mr. Herb Kuhlken said,” Jan, if you remain in this business for two years, you will always be in this industry.” At the time I did not believe him. Almost thirty years have passed since Mr. Kuhlken spoke those words to me, and he was right and I’m still here. My love affair with combustible engines is fueled by the change, excitement and intelligence of the people, products, and processes that make it run.
Yet today as I travel to consult with dealers and their allied partners across the country, I often ask, “Where is ____, the F&I manager you recently hired?” The frequent reply is “He/she did not work out.”
Why are so many of our new hires not working out? Where are the replacements for the Baby Boomer Generation that is beginning to migrate from the workforce?
Each generation of workers brings to business different values, new ideas and unique talents. Recognizing these differences is the key to motivating new hires.
Competitive-and achievement-oriented, Baby Boomers are accustomed to dedicating long hours to satisfy the demands of the traditional F&I work schedule. When they are at work, they think about work. In fact when they are home they often think about work. For Boomers who have placed their careers above all else, a 70-hour workweek is not uncommon. Their talk of having a balanced home and work life is just that. The price of professional achievement has often produced personal bankruptcy.
The new generation of F&I managers are part of Generation X. Their values are different from those of the baby boomers; so are their talents. Unlike Boomers, money is not a primary motivator, nor is a 70-hour workweek the price they prefer to pay for success.
This does not mean that Boomers are better than Gen X-ers. It does, however, mean that we must attend to the differences in order to ensure that F&I continues to be a viable profit center for the dealership. Performance expectations, job sharing, technology, and pay plans can address some of those X-factors.
Performance Expectations
Recognize that Gen-Xers are not going to work the long hours. Realize that when employees are happy at home they will most likely be happy at work. If their personal lives are stable, they will most likely be more productive when they are at work.
Job Sharing
Allow two employees to share the same workspace, workload, and the rewards of work production. Job sharing provides coverage for the store and time off for the employees who share the work.
Technology
Boomers use checklists and create paper trails. Gen X-er’s are at ease with technology and are ready to operate in a paperless workplace. Begin to interface high tech with the high touch that customers still require in our business.
Pay Plans
Re-evaluate the pitfalls of commission-based pay. Income derived only from commission deters time off, as well as time for training. Tired employees make mistakes. And fatigue finds the path of least resistance.
The new generation of employees desires a balanced life, good pay, and an opportunity for professional growth. Described in these terms, perhaps the difference between Baby Boomers and Generation X is that X-ers are taking action on what Boomers merely wished for. Our goal is to recruit and retain a high caliber of personnel. Our business is really all about the people who work at the dealership – who they are, what they do, and how they do it. Our employees are the very foundation that holds and sustains our businesses. Is it time to focus on the X-factor?
World of Special Finance, January 2004, p. 12