One of the mysteries of the auto dealership world is why general managers and general sales managers assume that low productivity and the resulting high turnover are inevitable with their sales teams.
...poor sales productivity and high turnover rampant in the industry are the result of faulty hiring practices.
Research has shown that it is appropriate to apply the Pareto principle to salespeople, whereby 20 percent of all salespeople now make 80 percent of all sales.
That means 80 percent of the sales force fights over the remaining 20 percent of the business not produced by the top sales pros. With so many salespeople competing for shares of such a small pie, the turnover rate in sales is obviously very high. But many general managers are willing to accept, as a cost of doing business, the unending expenses of recruiting, selecting, and training the continuing flow of newcomers into the sales ranks. They should,
instead, recognize that the poor sales productivity and high turnover rampant in the industry are the result of faulty hiring practices. Research has shown that 80 percent of the essential competencies required for success in the workplace are emotional intelligence, which is far greater than IQ or personality traits.
Emotional intelligence (EI) has been a “buzzword” in the business world for the last several years. By definition,EI is an individual’s ability to recognize and regulate emotions in.... In practical application, it is one’s ability to understand how our emotions and the emotions of others impact action and performance. Emotional intelligence has no greater application than in a sales position.
In an objective study of more than 2,000 auto dealer salespeople designed to measure the EI competencies among those salespeople that were successful versus those that were unsuccessful, the following five competencies were the most critical to predicting sales success and retention in the industry.
Intuition & Empathy. This is the salesperson’s awareness of the prospect’s feelings, needs, and concerns. This competency is important in a sales role for the following reasons.
Results Orientation & Decisiveness. This is the salesperson’s adeptness at inducing desirable responses from the customer or prospect.
Self-View. This is the salesperson’s level of courage and self-esteem that provides thick enough skin to persevere through various obstacles he or she encounters throughout the sales cycle. This competency is important in a sales role for the following reasons.
Self-Awareness. This is knowing one’s internal states, preferences, resources, strengths, and limitations. This competency is important in a sales role for the following reasons.
Self-Expectations. This is the salesperson’s emotional tendencies that guide or facilitate reaching goals and his or her sense of personal commitment to responsibilities. This competency is important in a sales role for the following reasons.
These are all essential competencies in selling in the auto dealership industry. The salesperson who knows the product or service inside out will not succeed in the long term without possessing these essential competencies.
“Since we implemented an emotional intelligence pre-employment profile to help in our sales selection process, our retention has jumped from 10 percent to 77 percent. And not only do the employees stay longer, but they are more productive, catch on more quickly, and require less time in training,” says Regina Roat, HR Director of Sterling-McCall Auto Group in Houston, Texas, and part of Group 1 Automotive.
Auto dealers who are forward thinking and realize they are competing for top talent with other companies in their market are now implementing emotional intelligence into their selection process. Additionally, they are also providing emotional intelligence management development programs to assist their managers in leadership development, which has a major impact on improving the manager/employee relationship and is a critical piece in improving employee retention.
Mike Poskey is President of ZERORISK HR, a Dallas-based human resources consulting firm that focuses on developing, hiring, and retention programs for the auto dealer industry and is the exclusive provider of the ZERORISK Hiring System.
For more information, visit https://zeroriskhr.com/