According to Mark Gilbert, retaining your dealership’s best sales representatives is just as important or even more important than attracting them. According to the Automotive News, the annual turnover rate for car dealership salespeople was 67 percent, and that figure has been steadily rising since 2013. Some of the factors cited by those who quit were the reputation of the industry, long hours, and the compensations structure. Mark Gilbert gives tips for keeping the best salespeople in your dealership.
1. Change the pay structure. A compensation plan that’s heavily dependent on commissions is great when car sales are soaring. However, during lean months, salespeople tend to earn less and are tempted to look for jobs that offer stable pay. Mark Gilbert suggests that you offer a higher base pay with lower commissions or offer a year-end bonus program in lieu of commissions instead. If your salespeople feel secure, they won’t look for opportunities elsewhere.
2. Promote from within. Many would-be dealership employees are turned off by the perception of sales as a dead-end job. However, promoting your best salespeople to management and leadership positions makes them feel that they’ve accomplished something worthwhile and gives others something to aspire for. Mark Gilbert says that promoting from within also fosters a sense of ownership and helps develop future leaders in your organization.
3. Overhaul the culture. Car salespeople sometimes have an unsavory reputation, much of it not deserved, say Mark Gilbert. Many younger employees no longer see how worn-out sales tactics and workplace culture could fit into the times. They also welcome the opportunity to negotiate deals, which doesn’t happen too often because this duty is often reserved for their manager. They want a culture where they know they are free to make decisions and to be accountable for what they decide upon. If you want your younger employees to work for a longer time, changing the culture is necessary.