Employee turnover is common in our industry. All dealerships have it and want to reduce it. In fact, 1 of every 2 new hires either leaves or is fired within the first 6 months on the job.¹

In this two-part series, we'll discuss what you can do to become an exception to this statistic.

What's the Big Deal?
The cost to find, hire, and train an entry level employee ranges from $2,300 to $9,300² and is increasing. With turnover rates up to 100%, that is no small expense!



Bad hires who don’t match your dealership culture and strategy can cost more money through costly mistakes and poor productivity. They can also create employee hostility, lower morale, and ruin your dealership’s reputation.

How Does This Happen?
Unfortunately, dealerships often fall into a haphazard hiring process like this:

• A position opens. Are you relying on word of mouth?
• You hurriedly grab the next warm body. Too often, when hiring needs come up, the primary concern is speed over quality.
• The applicant gets a quick interview but no testing is done to determine if they will be a good fit. Hiring managers often don't have time or training to interview candidates correctly. Subjectivity and incomplete information can cloud interviews.

What Can I Do About It?
Protect yourself by taking the necessary time and care at each step of the process:

• Advertise the job opening. Be open to all potential applicants.
• Accept only the best applicants. Use aptitude and attitude tests to weed out those who are unqualified. This saves time and allows you to interview the best-matched candidates for the job.
• Perform a thorough interview. All applicants who walk in your door want the job, so they often tell you what they think you want to hear. Be prepared with questions for the interview. Know what you want to discuss.

Turnover is not going away, but by modifying your hiring process, you may lower turnover rates and ultimately your hiring expenses.

¹ U.S. Department of Labor
² Society for Human Resource Management