Dealer Login

7 Steps to Avoid a Bad Hire at Your Dealership

By Ryan Leschel | Mar 22, 2021

Last updated on May 11, 2023

Did you know a poor hiring decision can cost your dealership 30% of that hire’s first year earnings?

Did you know employers spend an average of $7,000 to replace a salaried employee and up to $40,000 to replace a senior manager?

Did you know the average cost for replacing a high performing employee can be up to $108,000?!

Learn how to optimize and retain your dealership team. →

For a dealership looking to maximize profits and cut unwanted costs associated with hiring, this can be a real issue.

A bad hire can directly affect your dealership and the culture you worked so hard to create.

Productivity loss, morale implications, turnover, recruiting costs, and the chance of legal ramifications, can all do serious damage to your budget. More importantly, bad hiring practices take away a resource that you can’t find on an expense sheet... YOUR TIME.

Let’s talk about time.

With 26% of the work week spent on people related issues, hiring managers are spending more time attending to those issues rather than bigger opportunities that help drive profit.

If you cut that percentage in half, imagine what dealers could accomplish with that time. You could sell more cars, spend time training, and just get more done.

By pressing ‘go’ on a decision to consultant experts for your hiring process, you can give yourself and your managers up to 60 hours a month back in time.

If you could put a price tag on time gained back, what would it be?

By working with consultative services that take a partnership approach, like JM&A Group’s Dealer Talent Services, you make it possible to train, develop, and invest in your employees while adding the advantage of having 24/7 access to accurate behavioral data provided by The Predictive Index.

Empowering managers to move the chess pieces as they see fit.

Fortunately, there are several first steps dealers can take long before looking into working with a consultative talent service that can begin laying the foundation of future-proofing your hiring process.

Below are tips to consider if you are looking to get your hiring process on course and start earning back time and money for your team.

Step 1. Clearly Define the Requirements of the Role

The first critical step in the hiring process is to define what would make someone successful in the role. Yet, different stakeholders often have varying perspectives on what this means. By using a job analytic, organizations can objectively align all stakeholders on those activities that are most important for success in each role. Having an agreed upon job target sets the foundation for a successful hiring strategy.

Step 2. Write an Accurate Job Description

Hiring managers often make the mistake of focusing more on activities and tactical goals than on detailing all of the Knowledge, Skills, Abilities and Other characteristics (KSAOs) that an employee will need to be successful in the role. A well-rounded job description provides clarity around the needs of the job for both the internal team and external job seekers.

Step 3. Define What Makes a Strong Candidate

When analyzing the results of the recruitment effort, managers will in many cases identify several candidates who meet the minimum requirements of the job but will ultimately be a poor fit. To avoid this scenario, consider behavioral tendencies and attitudes in defining what makes a strong candidate and compare applicant profiles against the job target to determine compatibility.

Step 4. Incorporate Behavioral Data into the Screening Process

Since the average hiring manager may receive 100–150 applications per position (depending), the right technology solution can help organizations manage volume in the hiring process. However, with some technologies, organizations run the risk of eliminating good fit candidates while retaining applicants who prove to be a poor fit. Using a quick and practical assessment to measure a candidate’s A poor hiring decision can equal of that hire’s first-year earnings 30% Employers spend an average of $7,000 to replace a salaried employee and up to $40,000 to replace a senior executive. Behavioral assets provide additional data points to the decision-making process. This helps ensure hiring managers aren’t passing over the best candidates and continuing to interview poor fit candidates.

Step 5. Conduct Better Interviews with Data-driven, Behavior-based Questions

When hiring managers lack the training or practice opportunities to conduct effective interviews, they often resort to generic interview questions that don’t evaluate the candidate in the areas that matter most. Using assessment data to inform the interviewing process can help all members of an interviewing team develop structured behavioral interview questions to determine job and culture fit with greater accuracy.

Step 6. Align Job Offer with Candidate’s Motivating Needs

In today’s hyper competitive market for top talent, the key to getting a candidate to accept a job is presenting an offer that resonates with their innate motivating needs and drives. Organizations that do not align an offer with the behavioral profile of the person risk losing a strong candidate.

Step 7. Customize a New Hire’s Onboarding Plan and Learning Objectives

Once the hiring process has culminated in a great new hire, managers must embark on getting that individual embedded in the culture and productive as quickly as possible. A common misstep is when managers don’t continue to leverage the data and insight collected thus far to customize the new employee’s onboarding plan and learning objectives. This unnecessarily puts at risk the employee’s success potential and job satisfaction.

By leveraging the workforce data and processes associated with JM&A Group’s Dealer Talent Services and our partnership with Predictive Index, you can help optimize the performance and potential of individuals and teams without wasting time and money.

Get the Best Out of Your Dealership Team - Get Started