Few industries other than
the fast food and other minimum wage based companies
have as great a turnover of personnel as we in the
powersports industry. The fast food, hotel, Wal-Mart,
other “Big Box” outlets and similar industries are
employing untrained minimum wage people. They can be
forgiven, at least in part, because their employees
require very minimal training. The employers have
resorted to automation rather than relying on a thinking
staff. Why? Thinking people cost more per hour than
those who are not required to think.
People in your dealership
need to be trained in order to be even modestly
efficient. Turnover in the average dealership in the US
is about 30% per year. What that means is that at any
given time one-third of your employees are financial
deficits. Instead of being part of those making you
money, they are costing you money.
What’s a reasonable
turnover? I think 10% is reasonable. That percentage
is often caused by geographical moves of a spouse, or a
better offer elsewhere. The biggest portion of the 10%
is because you, the dealer principal or GM, let that
person go. “Let go” is a euphemism for “fired.”
Looking at this from the
employee’s perspective we’ve also discovered that
trained employees exhibit more confidence, are more
efficient, are happier to be there, and stay employed
considerably longer.
Now for the rub: Who does
the training of the employees, and even more important
who’s responsible for training the management team? That
team includes the dealer principal, the general manager,
and department managers.
Having taught at the
Harley-Davidson University for more than a decade I can
tell you there are very few dealer principals who really
know what their job is. They, more than anyone else in
the dealership, need training.
What must dealer principals
and GMs learn? They need to learn to work “on” rather
than “in” the business. (I’ll discuss that in another
article.) They need to learn how to become coaches and
mentors. They need to know where to direct their
managers to get the training they need.
Just as any reasonable
dealer has a DMS (Dealer Management System) to keep
track of day-to-day activities, and the ability to
measure and manage those activities, I suggest that any
reasonable dealer have a line item in their accounting
with the title “TRAINING.” Training costs time and
money. You must be willing to invest both.
Let’s look at some
industries where continuous training is mandated. Of
course, at the top of the list would be any industry
where untrained staff could create a dangerous situation
that could endanger the public, or cause the loss of
life. Add any other industries that want to avoid
expensive litigation or insurance costs.
So how much training is
enough? To become a Doctor of Medicine, for example,
the minimal training includes pre-medical school,
medical school, and internship. The length of training
averages 12 years. Only then can the newly graduated
doctor rent a space, start paying for equipment, hire
help, and open the doors for patients. Keep in mind the
“average” medical doctor in the US earns about $150,000
per year. Then, in order to maintain his/her medical
license, the doctor must continue the training to gain
critical knowledge about new procedures, medicines, and
technology.
Getting back to our
business, we know that techs need training so that they
can service and repair units with a minimum of rework,
and a minimum of liability. The training also assures
maximum efficiency, which equals dollars in the till.
We know that whoever is in
charge of the dealership accounting must be trained in
that discipline. Who’s left? Everyone else in the
dealership, from the owner and manager down, needs to
accept on-going training.
The reason I accepted the
assignment of writing for Dealership University News, is that I
believe there is no shortcut to knowledge except through
training. The major inhibitor relates back to the old
cliché that says: “You don’t know what you don’t know.”
Once you accept being trained, the first thing you’ll
learn is exactly what you don’t know. From there on
you’ll learn what you need to know and then, how to use
that knowledge.
If I can influence you, the
reader, to get with the program and make training a high
priority, I can promise you your life will have less
angst. Your employees will feel empowered and you’ll
start doing more business and having more fun. Ok, your
move.
