It is apparent that our industry is under a major restructuring phase and serious consideration needs to be applied in the area of training our automotive salespeople.
It is estimated that there are some 125,000 car salespeople working in the U.S. The study found that employees are “an under-managed asset” because well-managed employees – those in whom the dealership has invested time and energy – stay at the dealership and return the investment by contributing to the dealership’s improvement. Good management is distinguished by a dealership’s attention to attracting, developing, and retaining employees.
Top quartile dealers have roughly 54% turnover of their sales force, whereas the bottom quartile dealers have 71% turnover. Top quartile dealers have a higher level of employee involvement in improvement activities – of the top 10% of dealers surveyed, 70% agreed that employees proactively engage in process improvement activities within the dealership.
The theory is that some of the realities of the business drive dealers and their employees in a vicious cycle.
Individual performance is the responsibility of everyone associated with the sales department. Salespeople and their managers need to take action to improve skills, reduce turnover and proactively engage in process improvement. Responsibility to sharpen skills and strengthen knowledge resides with anyone associated with selling automobiles.