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Forum: Idea Exchange
Topic: Stopping High Sales Turnover
Topic Posted by: Arlin Friesen
Date Posted: Sun Nov 22 23:47:05 EST 1998
Topic Description: I am a Sales Manager at a very small dealership. Can some one tell me how to stop the high turnover at our store. I want to build an agressive long term team.
Newer messages are at the top
Posted by: Billy the Kidd
Date posted: Thu Feb 7 9:51:54 2002
Subject: Retaining a Staff
Message:
Hire the right people upfront, encourage them, get invoved with them as human beings (personal lives too), and train, train, train!!
Money is rarely the reason someone leaves our employ. Some move, some die, some retire. If they can't cut it or hate it after a few weeks or leave for a "greener pasture", then it's my fault.
Posted by: Steve Hiatt
(SteveJr@HiattPontiacGMC.com
)
Organization:Hiatt Pontiac GMC
Date posted: Sun Oct 24 3:11:07 EDT 1999
Subject: Stoping Turnover
Message:
Turnover! I think I have a little bit on this one figured out; from experience! In 1997 we turned over 19 sales people, in 1999 we have only lost three, two of which were recruited to manage other stores in their quest for knowledge to own a dealership.
Turn your interview process into a REJECTION process, instead of a hiring process. Go to great lengths to weed out anyone unqualified. We do a minimum of 3 interviews by three different managers, and one of the three is by phone. We also do not believe in "quickey" interviews, all interviews last near an hour, and we talk about every job they have ever had. The phone is particulary informative, as without there resume and application the answers often come out quite different, or jobs never mentioned seem to pop up from no where.
We also really dig into the references and past employers, to find those strengths and weaknesses. Never be in a hurry, and never hire a warm body, it will cost you more than you can imagine. I figure it costs me close to 90k every time I lose a salesperson, in lost deals, lost time, lose of training investment and so on.
Once you hire them, train them, and train them and train them, and then....train them some more. Keep them constantly learning, and getting better.
Find a salesperson with as high of ratings of Ego and Empathy that you can, as, they need both to be sucessful in selling. Also, if they have a pattern of spotty employment, with no tenure for any reasonable period of time; just send them a "we regret to inform you letter" and move on.
More importantly, before you even run an ad or set an interview appointment, sit down and write out a very clear, defined job description. List every thing you will require this salesperson to do, all the details, processes, expectations, pay plans, and then review it thoroughly. Are YOU willing to enforce your own requirements? Is that you will train them on? Are you willing to walk the talk and even terminate them for not following your guidlines? If not go over it again and again, get all the managers, and owners on the same page, then place the ad and hold the interviews, otherwise, don't waste your time.
And before they come in write out the questions you know you need to ask them, and maybe ask those tough questions a couple different ways, see if the answers remain consistant. Have all the managers ask the same core questions, and meet with everyone in the hiring process before you extend an invitation of employment. If one manager says "NO" after the discussion has been had, no hire, back to the drawing board!
Good Luck!
Posted by: Randy BrooksSt
(broo@localaccess.com
)
Organization:Lincoln Mercury of Olympia
Date posted: Mon Dec 14 1:44:40 EST 1998
Subject: Stopping High Sales Turnover
Message:
Arlen--To stop rapid turnover you have to look further than the pretty package presented by interview appearance. How many times have you noticed the salesman profiles which include: The Young Guns, 19-25, The Cowboys, all ages with handlebar mustache,Texas accent and bowed legs, The Quarter-Magnum; (looks like Magnum PI except a foot shorter) all ages, and last but not least the oddball, (the ones you can't fit into the other categories.
Hiring people that fit these profiles has led to cookie-cutter sales forces that look alike, sound alike and easily then can transition out of your salesforce into another one across town. Why should you train your competitors next newest employee. You have to look deeper to find the keepers.
Sales energy is a by-product of drives. Often the best salesmen are ego-driven, controlled by conditions such as drugs, alcohol, sex or financial hardships. If a salesman isn't demonstrating any of these categories you may want to look deeper to see if he really has what it takes. People with these tendencies tend to do whatever it takes to get what they need. They have spent a lifetime convincing themselves and others to give them whatever they want and the one true word they hate is "no". This makes them ideal salespeople but terrible for dependability or durability unless carefully chosen.
Your job is to analyze each persons need tendencies and come up with whatever carrot or stick you need to both motivate them and keep them in your employ. What works for one will likely be unimportant to another. Since the business is so guru-oriented if you are able to work this out successfully with each guy they will cling to you like shrink wrap.
Also it is critical to do a careful job backtracking your salesmen before you hire. Studying how long they usually stick with a job before moving on will tell you predictably how long you will have them. Avoid the grazers that move constantly like a tumble weed. Not only will you lose them but they may knock loose somebody else you value when they leave for their next work.
Remember that in this industry somebody is often only as good as their last month, and certainly their last 6 months. If they were at a slow store, ascertain what the average salesman was producing by contacting the managers, producing collateral information from the applicant like statistic sheets he kept, etc. Just because a guy could sell cars three years before when somebody knew him doesn't mean he's still got it; so track the current stuff. Back up heresay with real data.
Make individual work assignments challenging based on each persons ability. Review performance and make training plans that will fill in deficiencies. Plan carefully.
Study each new hire in relation to the other members of your team. Track any previous problems current employees may have working with that guy before. Involve your salesforce in the hiring/training process. Put effort into making sure the new hire doesn't get traumatized, or that the existing staff loses productivity.
Ask for goals employees have. Hire those with interests that correspond to long term employment. Avoid situations where you hire somebody because you're desperate, don't have time to check him out. Lastly, check references, driving record and criminal records as well as administering a pre-hire drug test. You wouldn't beliewe what you will find. Try to be fair and impartial in reviewing this information to determine if the employee is really appropriate for your worksite. Consult your attorney on this to avoid potential difficulties.
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