Tag: DMS

3 Ways Easy-to-Learn Technology is Good For Your Business

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Technology changes every day and, often, businesses have a difficult time keeping up. When your dealership falls behind the technology curve, it’s painfully obvious. Auto dealers, famously, tend to hang onto old technology. While staying put and “making do” with outdated technology is very common, it doesn’t have to be that way. Adopting a Dealer Management System (DMS) that is designed to be easy-to-learn is good for you, your business, and your team. Here are three surprising impacts of implementing easy-to-learn technology at your dealership.

Faster Onboarding Time

According to one study, it can take up to eight months for your fresh new hires to reach productivity. How many lost sales are walking out the door during that time frame? When your dealership runs on a DMS that is easier to dive into, more intuitive, and that doesn’t require endless memorization, you can rest assured that your team can go from “personnel to professional,” faster.

Hire for the Skills You Want

Dealership turnover reached an overall high at 46% recently, causing many employers to hire based solely on DMS experience to reduce the amount of training required. The problem? Your customer experience will begin to suffer if your staff is chosen based on a skillset that has nothing to do with them. However, bringing in an employee who matches the culture of your dealership, who can learn your DMS, and who is likely to grow with your team in the long term, is a valuable asset.

Engaged Employees Want to be Developed

The workforce is changing as more millennials enter the job market every year. This group of smart, digital natives are eager to learn and happy to work in an exciting industry. And at the top of their list of needs? You guessed it: professional development. In fact, 87% of millennials cited professional development as their top need—above time off and compensation—when looking for a career. If your DMS doesn’t offer continued learning options and a community where they can continue to develop their skills, you will lose them.

While choosing a new DMS is certainly a big decision, finding one that your team can learn without a struggle can help everyone in so many ways. Your new hires can quickly get up-to-speed faster while your hiring managers can recruit for the skills that match your company’s mission and goals. Plus, as your sales people, managers, and team members become more engaged, everyone wins. Watch the video below to see how an easy-to-learn DMS made the decision even easier for these real-life dealerships.


 

Are You Losing Money Across Your Operation?

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This article originally appeared on Digital Dealer here.

Just like we run our homes and our lives, we run our businesses by our calendars. It keeps us on track, organized, and efficient. However, the monthly “must do’s” in the dealership – from administrative work to data cleaning, inventory check-ups, and talent acquisition and retention – have become overwhelming and expenses are adding up.

Consider this: In 2018, NADA reported an average dealership’s expense structure was 100.2 percent of its gross profit. In the first quarter of 2019, this skyrocketed to 106 percent. Fortunately, in Q2, NADA saw this rate finally drop back into the green at 98.5 percent.

But the story can’t stop there. Dealers can’t afford to settle on a 1.5 percent gross profit margin. Rather, they need to take the next step toward right sizing their expense structure, and that means efficiency, efficiency, efficiency. Where better to start than by looking into the system that touches every part of the dealership – the DMS?

However, as the saying goes, you can’t boil the ocean. In other words, don’t try to take on all aspects of the DMS at once. Instead, we are introducing this new series to help take you step-by-step through some of the most common seasonal “must do’s” to keep your dealership running efficiently all year long.

First up on the calendar is model-year turnover season.

Your Personal August “Must Do’s”:

  • Start back-to-school shopping, get your last beach days in, prepare for Fantasy Football draft, make plans for Labor Day.

Your Dealership August “Must Do’s”:

  • Prepare for model-year turnover season. Address any and all account changes, from removing old or unnecessary accounts to adding new ones.

It’s already nearing the end of August and that means fall is just around the corner. But in the auto retail world, it also means a busy changeover and selling season.

Not every model year changeover is massive, some years are easier than others. Either way, it’s important to find out as soon as possible from your OEM what you can expect – major or minor. That way, you can plan ahead.

This year, at least one OEM has indicated plans for significant model line changes, which will necessitate nearly 200 new account additions to a dealer’s general ledger. In broader terms, for every model line modification an automaker makes, it is not unusual for it to generate three to five changes to a dealership’s accounting practices. If you multiply that out across several brands or automakers, that could mean a substantial amount of administrative work that you will want to get ahead of.

As a result, whether it is a major or minor year for model changes, you will need to take swift action to get new accounts added, validated and routed to the corresponding sections of financial statements and related documents to ensure your reporting is accurate from the minute the new vehicles start rolling in. There’s also the task of removing old accounts for models that have retired and executing a merger of accounts when the OEM indicates it’s necessary.

The average dealership has between 800 to 1,000 accounts in its general ledger chart (assuming a dealer has one brand). That can be a lot to manage and update. Here are some key do’s to help you through this busy time of year.

  1. DO keep up with physical inventories. Whether you do these as spot checks periodically or once a year, it is a good idea to compare what the computer is telling you to what you actually count is on the shelf or in the bin.
  2. DO consider your DMS provider as a partner and resource to assist in easing model-year changeover. Do you have the right technology provider in place to help make implementing changes a seamless process? Do they offer any “white glove” services – where they will handle adding all new accounts to your general ledger, manage all financial statement routing, and make the required changes to the related documents for you? Or, are you on this journey alone? The right provider can be the key to several other “rights,” including the right tools and right processes to keep your entire team moving effectively, no matter how much administrative work you need to address.
  3. DO look to your peers as resources and explore any online materials your provider may offer, such as video tutorials, eBooks and peer-to-peer learning exchanges. You aren’t the only one going through model-year mayhem, so don’t be afraid to ask questions and leverage on-demand training opportunities to set yourself up for success.

Stay tuned for more as this was just part one of an article series covering “must do’s” to rein in expenses and drive efficiency at your dealership

About the Authors:

Susan Moll is Senior Director of DMS Field Services for Cox Automotive and Matt Hurst is Senior Director of Tech Client Support for Dealertrack DMS.

This article originally appeared on Digital Dealer here.

Four Keys to a Successful DMS Switch

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Upgrading your Dealer Management System (DMS) is a must-do. But, just like other franchise dealerships, you may postpone this important upgrade for many reasons. And it makes sense—who wants to introduce fear, change, and relative inconsistency to their entire staff? Switching your DMS doesn’t have to be daunting. So, we asked Susan Moll, Vice President of Client Implementation at Cox Automotive, to share the tactics and best-practices that lead to a successful technology transition. 

Dealer Principal Owners and General Managers often wait to make the move until it’s absolutely necessary. According to Moll, “many dealers have been using the same system for decades, with years of accumulated customer lists, outdated setups, old reports, records and files that need to be dusted off and sorted through.” Fortunately, in a recent interview with the team at Jim Browne Auto Group, Moll assured dealers that a DMS switch doesn’t have to be scary. Here are Susan’s four keys to making a successful switch: 

Step 1: Make an Action Plan   

Before you begin, you and your management team should set up time with your future partner to establish a clear roadmap for the implementation. This should include a thorough timeline that defines how and when the new technology will transition.  

Most DMS transitions will take around 90 days from start to finish which should include planning and training your crew. 

Step 2: Find Your Team Champions 

A successful DMS switch doesn’t happen overnight, of course. But it also doesn’t happen without the help of individual department champions. Identify team members who are eager to learn and ready to help lead change. Make sure to incentivize your crew as the new technology rolls out. Your champions will become an important part of the process as learning and training assignments are distributed. 

Step 3: Keep an Open Door  

Fine-tune your change-management skills as this will become the key success factor when making a big technology switch. Aligning your goals to your values is a great way to start, so be sure to keep an open-door policy and allow employees to reach out when they become frustrated. Communicating openly, and frequently, goes a long way. And it simply must come from leadership. According to Moll, “The most successful implementations start at the top.” Hold weekly status updates, send frequent emails to the staff, and let people know that you’re proud of their progress. 

 

 

Step 4: Practice with the New DMS Technology 

Learning a new DMS will take some time and practice. Your team will be given access to train on the new system inside of a “sandbox” environment. You will be assigned lessons and training that cover how to use the new technology. Dealertrack is rated the #1 easiest-to-use DMS, but it will be different than the current tool you have used before. 

Automotive dealerships are a fast-paced business that deal with change, daily. Covering your basics and preparing for a successful DMS switch will help ensure that your entire staff is ready to hit the ground running once you flip the switch.  

Ready to learn more? Check out the tips and best practices below to make sure you hit the ground running with your new solution here. 

 

 

Next Generation of Dealers Wants to Hold onto Dad’s Legacy, Not His DMS

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This article originally appeared on CBT Automotive Network here.

For some auto dealers, Father’s Day is more than an opportunity to celebrate Dad. It’s a chance to celebrate the man who brought them into the auto business, someone they still may work with daily. When dealerships stay in the family, the next generation has the opportunity to maintain that legacy. But it doesn’t mean having to do everything the way Dad did it. For some, it means moving away from Dad’s DMS and toward a provider and technology that works better, all the while staying true to the roots that planted you in the dealership in the first place.

Even the biggest technology companies in the world recognize the need to shift away from legacy technology and offerings that once were their hallmarks, but now may be holding them back. Apple, for example, recently decided to move on from iTunes, a technology that changed the way we bought music, listened to podcasts and watched TV shows and movies. As technology and customer needs evolved, Apple decided it was also time to evolve its own technology and recently announced plans to replace iTunes with a three-pronged approach split into Apple Music, Apple Podcasts and Apple TV.

Similar to tightening competition among dealers, disruptors from Spotify and Pandora to Netflix and Hulu have been eating into Apple’s market share. Instead of waiting for customers to jump ship, Apple introduced a change of its own to meet these new market demands.

Kathryn Mataga understands how changes in technology can help uphold a company legacy. In 1980, her father Yosh Mataga took a leap of faith. Picking up his life in Southern California, he moved his wife and two young daughters — ages five and less than one at the time — to Central California, where he and his partner purchased a new Oldsmobile Buick dealership. Kathryn grew up working at her father’s various dealerships, earned a degree in economics and then worked at another owner’s Montana dealership before making her way home.

At Mataga Buick GMC Cadillac, she rotated through the finance, sales, service and parts departments, eventually becoming the general manager. Today, Kathryn sees the family dealership, now located in Stockton, California, as a place for customers from all walks of life to get their transportation needs met and her staff as trusted guides to help car shoppers understand their various options in a way that makes sense for them.

Kathryn realized that while she and her younger sister Carolyn — who also works at the family dealership — place the same high value on relationships and customer service as their father, they need to make some changes at the dealership to continue to succeed. One of those changes has been technology. They know technology is there to serve them, and they won’t tolerate a cumbersome DMS, stuck in a relationship with a provider making their lives more difficult.

Since entering the auto business, I’ve overseen more than 15,000 DMS installations. At my company’s annual Customer Advisory Board, I started to see dealerships in transition. I’m now welcoming the sons and daughters of the dealers whose DMS I once installed, and meeting a new generation looking to invest in an enhanced experience for both their employees and customers through new and modern technology.

I’m beginning to see this new generation trend away from the legacy DMS their dad once used toward a more open, easy and flexible system that they know will appeal to younger workers who were born digital natives and are accustomed to a high-tech, hyper-connected environment. In 2017, Gen Z accounted for 14 percent of all new hires in the dealership, according to NADA’s 2018 Dealership Workforce Study, a seven-point jump from 2016. As more members of Gen Z begin to reach working age, this number will only continue to grow. However, having the right technology will be critical to attracting this new talent. They want technology that is user-friendly and helps streamline processes rather than hinder them.

With a new generation of workers also comes a new generation of consumers who expect an efficient and convenient car-buying experience that puts them in the driver’s seat. Customers today want to get in and out of the dealership. They won’t tolerate a process that takes hours on end. Your technology should help you meet, if not exceed, these expectations.

Always being open to change and learning is something that Kathryn tries to impart on her staff after hearing similar advice from her own general manager at a previous dealership. “When you’re green you grow and when you’re ripe you rot.” If you think you know it all and there’s nothing else to learn, you become stagnant. For Kathryn, these foundational values are key to how she now runs her dealership and looks at new technology.

If you save a customer and staff member time, you’ll make it a better experience for both of them. Kathryn realizes that, and it’s one reason she’s able to carry on her father’s legacy. She pays attention to what matters – the customers, the relationships and employee satisfaction. And she changes the technology to make all their lives better. “My dad taught me that if you take care of your employees, they will take care of your customers and your customers will take care of you,” she said. This all starts with the right technology and a commitment to continuing Dad’s legacy.

This article originally appeared on CBT Automotive Network here.

Let’s Do the Math: Integration Fees Are Hurting Your Dealership

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Many dealerships are feeling the pinch of margin compression, strict government regulations and compliance rules, and the high cost of turnover. But there’s another hidden cost impacting your bottom line, and it’s hidden in plain sight. As dealerships adopt modern technology services to run their businesses more efficiently and meet customer demands faster, the need for integration between platforms and systems comes with data access charges, or worse, user fee agreements, that can seem small—at first.

It Adds Up

According to research, the average automotive dealership now uses up to seven technology systems just to complete a transaction. That’s seven systems that all communicate (hopefully) with each other, seven systems that require training for your employees, seven logins, and seven different user access rights agreements. Beyond that, if you’re working with multiple vendors, you’re likely paying up to seven different vendor agreement fees at this point to access your data.

If your dealership uses 7 apps at an average cost of $500 for third-party integration fees, that’s $3,500 a month—or $42,000 a year.

Still Not Sure How Much You’re Spending?

Your dealership depends on the right technology to get the job done. And, you can’t go back to filing paper reports and making your customers sit around and wait while you extend the already long process of completing a transaction. When it comes to running your dealership in a hyper-competitive market, your Dealer Management System (DMS), is the central technology that keeps your dealership running. Are you sure you’re not overspending on third-party integrations or extended contract fees with a provider who doesn’t have your best interests at heart? Plug in the numbers here and see what your technology is really costing your dealership.

The Right Technology Can Save You More Than Just Money

Once you see for yourself how much it costs to access your own data, you’ll start to wonder how much an outdated, legacy DMS costs you in other ways. For instance, a DMS that doesn’t offer on-demand training or access to an online community could stifle your team’s ability to grow their skills. Technology that impedes your new hires and your onboarding process costs your dealership in time, productivity, and even sales in the long run. Your technology should help, not hinder your dealership’s processes and workflows.

Start expecting more from your technology. Calculate the extra costs that often go unnoticed to access data that you already own, and demand more, today.

Calculate your costs here.

Why Now Is the Time to Clean Out Your DMS

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Just because spring is almost over doesn’t mean you’re in the clear when it comes to cleaning. Tidying up the house or clearing out the garage is on very few people’s lists of fun things to do. That’s why they’re often pushed to the back-burner, or never completed. But, remind yourself how good it feels when you finally unpack, organize and reap the benefits of your efforts. You wonder why you waited so long in the first place.

The same thing applies to your dealership’s DMS, which requires periodic reviews, clean-ups, and updates. All too often, however, fear of change can hold you back from sorting through your outdated technology, cleaning up data or taking that first step toward a DMS switch.

Having overseen thousands of DMS installs throughout my career, I know how hard it can be to let go of old technology. Many dealers have been using the same system for decades, with years of accumulated customer lists, outdated setups, old reports, records and files that need to be dusted off and sorted through. However, just like cleaning the garage, decluttering your dealership’s systems can help rejuvenate your staff and make way for better, more streamlined processes.

One customer I worked with shared that their 20-store group had been with the same DMS provider for more than two decades. They had 200,000 customer names on file, with some going back 25 years. Do you think those customers still own the original cars sold to them by that dealership? Are they all still in the area? The customer list was the first clean-up priority for this group looking to switch systems. They recognized that an updated list was critical for staff to focus on the best leads for new sales, while still maintaining a service and sales history for active customers. This is a perfect example of why you need to use your DMS switch as a time to house clean, take inventory and get rid of old data.

After implementing a new, modern DMS, your staff is better enabled to focus on what matters most: accessing information quickly to help drive your dealership’s business strategy and success. A Dealertrack survey found that 83 percent of dealers who continued using their legacy DMS felt the technology was not prepared to help them move toward the future, and 91 percent felt their DMS was not delivering ROI. There is absolutely no reason to continue using a system that is not paying returns. In fact, the same survey revealed that the number one benefit for dealers who did switch systems was the value they gained. When the barriers to effectively doing their jobs are lifted, staff members can focus on what they do best, whether it’s car sales, customer service, fixed operations or something else. Technology is no longer impeding their progress and operational efficiency.

How do dealers know their new DMS technology is working? I hear from dealers all the time that they can tell by the feedback they receive from their employees. They find the new system valuable and feel better supported in their jobs. There are also benchmarks like being able to submit monthly financial statements to the manufacturer accurately and on time. Cash clearing accounts are being reconciled to zero every day rather than accumulating. In the service department, open repair orders are being closed and monitored daily.

After switching over to a new DMS not too long ago, Barbara Condon, controller at AutoFair, quickly saw what efficiency could mean for her dealer group. “The way the new system is set up, you no longer have to run month-end reports because they are already in there. You can always get them. Closing is no longer a case of, ‘Hey, everybody, get out of the system so I can close.’ I can now go in and switch it from a Y to an N, and we’re closed. It’s seamless.”

There are countless reasons why a dealership might be motivated to make a DMS switch. While changing to a new system will save some dealerships money, other factors for DMS cleaning include creating standardization across a group’s rooftops, the flexibility of open integration, a mobile-friendly platform or finding a vendor you can form a true partnership with. Dealers have differing needs and the best technology providers focus on building and maintaining customer relationships, supporting them at all times.

No matter the season, cleaning up is a chance to look at how you’re running your dealership, knowing that you don’t have to run it the same way it’s always been done. Just as consumers are buying cars in new ways, dealers need to find the best technology to help them in the current sales market, while moving toward the future. It’s worth stirring up the dust, and if you find the right vendor, they will be with you the entire way.

This article originally appeared on Digital dealer here.

Susan Moll joined Cox Automotive in January 2017 and is the senior director of field services. In this role, Susan is responsible for all DMS implementations across the United States. Susan has a wealth of knowledge and over 35 years of automotive industry experience.

In November 2015, Susan was recognized by Automotive News as one of the Top 100 Leading Women in the North American Auto Industry.

Continue reading “Why Now Is the Time to Clean Out Your DMS” →

The Race for Talent: Why the Right DMS and Technology Partner are Key to Attracting Quality Candidates

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Finding and retaining the right talent has never been more important or challenging for dealerships. They’re now facing the double whammy of historically low unemployment rates and high employee turnover. Fortunately, it turns out a modern DMS backed by a true technology partner might not only be important for streamlining your dealership operations, but also the trajectory of your hiring and retention strategy.

Many dealerships have traditionally followed a recruiting process where the goal is to find employees who already have experience with a specific DMS. That ties their hands in terms of who they interview. Instead of focusing on a prospective employee’s customer-facing skills, many dealerships find themselves fixed on an individual’s technology experience instead. That leaves a large number of talented applicants on the table all because of how hard it can be to learn a legacy system.

With overall staff turnover reaching 46 percent in 2017, according to NADA’s 2018 Dealership Workforce Study, dealerships can’t afford to be held back by the time it takes to train new talent on a legacy system. Making a switch to a modern DMS not only can help expedite the onboarding and learning process for new hires, but also sets them up to be more productive faster. This gives dealerships the flexibility they need to hire the right talent, rather than being limited to those who already know the DMS.

Leaving your legacy DMS behind to offer easy, open and flexible technology will also be key to catching — and keeping — the attention of younger generations who grew up with the latest technology constantly at their fingertips. However, the linchpin to winning over this younger talent lies in the training opportunities. According to a recent survey conducted by Qualtrics and Accel Partners, the number one thing Millennials want when starting a new job is sufficient training. Similarly, a Gallup report titled “How Millennials Want to Work and Live” revealed that 59 percent of Millennials cite opportunities to learn and grow as extremely important to them when applying for a job.

Employees want to continue refining their skills. They want a positive and exciting work environment, and that means mental growth and challenges. If nothing changes for them and they are constantly struggling with a technology system or spending excess time to get what they need, that impacts both employee growth and dealership productivity.

The technology landscape is changing more rapidly than at any other time in history, and if a dealership isn’t on board with that, they will get left behind. According to best-selling author Malcolm Gladwell, it takes 10,000 hours of practice to become an expert. Whether or not you take this theory literally, the overarching concept makes sense. Mastering or building on any skill requires ongoing training and practice. The same thing can be said for technology at the dealership. That’s why when it comes to making a technology switch, the training needs to begin right away and continue throughout an employee’s tenure, empowering them to further their professional development.

The continual training concept is being adopted throughout corporate America. Walmart Academies are teaching advanced retail skills and helping associates take charge of their careers. AT&T is adopting a continuous education culture and helping reskill current employees. Amazon is paying for employee education in specific fields. Each company has a different model, but they’re all trying to keep their employees on board and learning. It’s time for dealerships to take notice and do the same. This, however, will require finding a DMS provider who is your partner first and your vendor second.

Look for a provider who is willing to partner with you to deliver the training and education necessary to keep your employees engaged and using the DMS effectively. Make sure they offer training courses and online resources that your employees can access at their own speed. Enabling your employees to take control of their own development based on their needs, learning style and interests is vital to maintaining a positive and strong workforce.

Hiring, attracting and retaining staff is still the top challenge for dealership leaders today, and the Q1 2019 Cox Automotive Dealer Sentiment Index suggests it’s only getting harder. The top driver of buyer satisfaction in the dealership experience is their interactions with salespeople — even more than how long the car-buying process took or the price paid, according to the 2019 Cox Automotive Car Buyer Journey Study. If salespeople aren’t fulfilled, they aren’t representing your dealership well. Hiring and retaining the right people matters, and it’s up to you to work with your DMS provider to ensure you have the technology and training opportunities necessary to win talent over.

This article originally appeared on Digital Dealer here.

This is the final piece in a five-part series by John Grace on overcoming complacency and fear of change at the dealership.

Thinking Fresh: Today’s Modern, Adaptive Auto Dealer

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Mandi Fang, Vice President and General Manager of Dealertrack DMS, a Cox Automotive company, recently joined Auto Remarketing’s podcast to share her perspective on digital transformation and its impact to the industry. With more than 15 years of executive leadership experience in the automotive retail industry, she’s been witness to the highs and lows of the market. And she knows that dealers, perhaps more than any other profession, are ready to tackle new challenges and adapt to change.

The Center of Digital Transformation in the Automotive Industry

The term “digital transformation” has been used a lot to describe the tremendous technology shift impacting every industry. For auto retailers, technology is impacting every aspect of the business. According to Mandi, “what we’re focused on at Dealertrack DMS is giving businesses the platform to scale.” As buying habits change and consumers demand a more efficient and convenient way to buy, use, and shop for vehicles, automotive retailers absolutely need confidence in their partners that they can build a strategy that delivers a more holistic experience. However, for many businesses getting to this point comes at a cost. After research, Mandi explains, “The average dealership uses seven different software systems simply to complete a sales transaction.” After some quick math, many dealerships are averaging $3,500 per month on fees alone. It doesn’t go unnoticed by Dealertrack, and Mandi goes into detail about this issue further.

From Summer Internships to Launching New Concepts

Mandi Fang brings years of experience in leadership to her role, but her early exploits into the automotive industry are not without merit. Her early college career also include summer internships helping to assemble S10s along the assembly line at General Motors’ plant in Ohio. It’s from this background that she shares some of the experiences and lessons she carries with her to this day. “You have to be on time,” Mandi explains “because no one waits for you to show you. Someone will take your spot. And that is really an uncomfortable position to find yourself in.” She credits diligence and discipline with her early internships, and shares that “…you couldn’t help but feel and understand that everything you do has an impact.” Hear more about her background here.

Today’s Adaptive Dealer

The automotive industry may be changing as technology ushers in new concepts like ride-share services, mobility-as-a-service, and faster, more on-demand buying habits impact the dealer-buyer relationship. But Mandi knows that dealers have adapted to change throughout the history of the automotive retail history. The real struggle, she explains, is about dealers “doing more with less.” The pressure to remain innovative and still provide the best experience while reducing margin compression is a lot. Listen to Mandi’s recent auto sales experience, from the buyer-side, here.

With so many tools, resources, and technologies available to dealers today, it can become overwhelming to find the right solution. Finding the right-sized provider and taking a look at the actual fees and costs associated with your systems is a good start. Knowing where you came from and holding fast to the lessons that shaped you, as Mandi shares in this podcast, are also a great lens with which to view the ever-changing automotive landscape.

Listen to the full podcast here.

 

Our Partners Are Doing Amazing Things In The Auto Industry

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When it comes to choosing the right vendor, automotive dealerships have a big decision to make. Matching a technology to meet your needs is only one part of the process. Dealers have to consider the bigger picture, including onboarding new hires long after the transition to a new platform takes place, ongoing training and learning options, and client support and guidance. Really, it comes down to selecting a partner, not just a provider.

See how our partners are mastering the automotive industry, every day. And hear how making the move to a DMS partner vested in their continued success makes a big difference.

Beyer Auto Group | Bringing Data Together

“With Dealertrack, I’ve got all the information I need accessible on a mobile device, on an iPad; anywhere that I go, I can see what’s happening with all our stores. “

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Sisbarro Dealership | Unparalleled Support

“If you’re not with Dealertrack, it’s only because you haven’t tried it. The system and the people are phenomenal, and they actually do what they say they are going to do. You can’t get that anywhere else.”

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Todd Wenzel Automotive Group | Improved Process & Efficiencies

“Dealertrack’s DMS has put us in a position to handle things both in the present and prepare for the future, whether it’s improving our processes now or acquiring more dealerships in the future.”

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Turn Dealership New Hires into Experts with Strategic Onboarding

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Employee turnover costs dealerships billions of dollars every year. Yes, billions. And the problem is getting worse. Payroll is rising and one- and three-year retention rates are dropping, meaning dealers are spending more and seeing fewer results year over year. This problem is only compounded by the toll of margin compression, operating costs, and the hidden impacts of low team morale and comprehensive operational inefficiency due to churn. The end results leave dealership to face a big struggle. Where can they begin to make a difference? The answer, according to the experts, can be found through more effective onboarding processes.

The financial impact of employee turnover

Calculating the total cost of employee turnover surprises many dealers. On its surface, it may look like a mere annoyance or human resource hassle. But dig a little deeper and it becomes evident that turnover is having a significant financial impact on dealerships. According to Harvard Business Review, “it typically takes eight months for a newly hired employee to reach full productivity.” While dealerships wait for their new hires to slowly climb the learning curve, they can lose between 1% and 2.5% of their revenue. These additional lost profits add up.

Employee onboarding drives faster recovery

Employees come and go in every industry. But according to the most recent NADA Workforce Study, dealerships, in particular, are losing nearly half of their workforce every single year. One way to mitigate the negative effects of this high turnover rate is to lessen the learning curve and bring new hires up to speed faster. When employees know what to expect and what is expected of them, they feel more comfortable in their work and they increase their productivity in turn.

According to the automotive experts at Hireology, a strategic onboarding process can contribute to the team “as soon as they join.” And the difference in productivity adds up. The Society for Human Resource Management has found that organizations with a standard onboarding process experience 50 percent greater new-hire productivity.

Onboarding and the DMS

The DMS is the backbone of modern dealerships and employees must be proficient with the system in order to contribute at a high level. For this reason, any dealership onboarding program must include technical training. Surprisingly, only 25% of companies say their onboarding program includes any kind of technical training.

The benefits of an easy-to-learn DMS

Dealerships with an easy-to-learn DMS have an advantage when it comes to onboarding new hires and reducing the financial impact of employee turnover. Because modern DMS platforms have simple interfaces that streamline workflows, they are easy to use and easy to learn.

For those dealerships currently considering a DMS change, ease-of-use should be a major consideration. Island Automotive Group, a 15-store dealership in New York, recently changed platforms and specifically sought a provider that appealed to its employees and made their jobs easier and more efficient. Dealership partner, Marcello Sciarrano, summarized it this way: “[Our new] DMS is a better system. It’s more cost effective, it’s easier to use, and our employees like it. To me, that’s what a DMS is all about.”

Employee turnover isn’t going anywhere. But dealerships can make a difference by building onboarding programs that include technical training on their DMS. And when their DMS is easy to learn, new hires know what to expect and what is expected of them, making onboarding easier for employees and more financially beneficial for dealers.