For most businesses, especially dealerships, conventional thinking is that the company’s biggest assets are tangible in nature – inventory, brand, location, etc. In fact, it is your employees that are your biggest asset. Just like you protect and maintain the physical assets of the company, a dealer must also devote time and effort to protecting and maintaining his or her work force. Too often employers think of their employees as a cost and not as a profit producer. Each employee contributes toward profitability either directly (sales persons, managers, technicians) or indirectly (office staff). They represent your dealership to all those with whom they come in contact. The following are some examples of ways to generate the most out of your “profit creators.”
It All Starts at the Top – In any organization, leaders lead and followers follow. What type of leader are you for your employees to follow? Employees take their cue from their superiors. Your actions set the tone for the whole company. If you are prone to treating your employees with a lack of respect, that will permeate throughout the whole dealership. You will have created an unpleasant work environment as employees will begin to treat one another the way you have treated them. They will assume this is acceptable behavior. Set the example of good behavior that you expect from your employees.
Develop a Positive Work Environment – Everyone is aware that it has been rough going for the auto industry the past couple of years. But having a perpetual “chicken little” mentality only serves to create an unhealthy attitude throughout the company. Recognize encouraging results no matter how small. When employees see that success is out there to be achieved, they are more likely to work toward creating more positive results.
Create a Comfortable Workplace – It would be nice if we could provide all our employees with large windowed offices where they would sit in large leather chairs behind oak desks to perform their work. Of course, this is not feasible either economically or logistically. However, making sure that there is proper lighting, proper temperature control and ventilation, and the right tools for employees to perform their work, are usually inexpensive ways to create an environment that promotes productivity.
Recognition and Rewards – There is not a single person who does not like to be recognized for a job well done. Employees want to know that effort they put in does not go unnoticed. A kind word from you can go a long way towards company morale. For most of us, there is a certain personal satisfaction in going “above and beyond.” It becomes even more gratifying when such deeds are acknowledged, especially from the owner. Even low cost rewards (pizzas for lunch, chair massages, etc.) will reap significant future benefits to the dealer.
While it is easy to focus on protecting and maintaining a dealership’s physical assets, those dealers that focus on their employees will create long run success.
If you have any dealership management questions, please contact Paul McGovern at 800-849-6022 or pmcgovern@downeycocpa.com.
