THE STAFF

How many people are needed in the general office? Some gurus have come up with ratios of one office person for x number of productive folks in the dealership; the more productive people, the more office staff. Others use dealership gross as a barometer. And others use a combination of productive people and gross. Each dealership is the same, yet each dealership is different. With that said an office should be staffed with as many people necessary to get the job done. As a reference, look at two stores:

(Includes the Receptionist and Controller)

The office staff does not include the warranty clerk, cashier or biller (Title Clerk).

80-20 PRINCIPAL

In 1906 the Italian economist Pareto noticed that 20% of the people in his country owned 80% of the countries wealth, 20% of the people owned 80% of the land and 20% of pea pods in his garden contained 80% of the peas. A natural phenom? Who knows?

Study after study has shown that the 80/20 rule applies to other applications.

20% of the people use 80% of the health care in the United States.

20% of the employees cause 80% of problems.

20% of the sales staff account for 80% of the sales.

And time studies have shown that in an eight hour day an employee is productive only 80% of the time. Why?

Some Reasons:

Personal phone calls

Internet surfing

Personal chit-chat at the water cooler

Potty calls

Roach Coach

Personal errands

Extended lunch hour

Etc.

If the 80/20 rule is applicable, and a properly staffed office has 5 people, goof off time and “coverage” would equate to one body. Thus 100% productivity would equal 4 people.

Example:

Office staff 5

Work hours in a week 40

Total available hours 200 (40x5)

Productive hours 160 (200x80%)

Staff Equivalent 4 (160/40)

Is an office of 5 properly staffed when the 80/20 rule shows that an office is properly staffed at 4? Yep. The additional body (hours) is needed for coverage, i.e. lunches, vacations, sick time, goof off time, etc.