women in automotive 2017 - donna wagner

Internships to Improve Your Bottom Line?

You Can Do This

Northwood University Can Show You How

"What is concerning is that we continue to have an industry that suffers from very high turnover and an inability to retain workers," NADA Chief Economist Steven Szakalytold Automotive News. "When you look at the best-in-class dealerships -- those that are highest in terms of revenue and profitability -- they also happen to have the highest employee retention rate."

"What is concerning is that we continue to have an industry that suffers from very high turnover and an inability to retain workers," NADA Chief Economist Steven Szakalytold Automotive News. "When you look at the best-in-class dealerships -- those that are highest in terms of revenue and profitability -- they also happen to have the highest employee retention rate."

Dealership turnover squeezing profits

Szakaly: Wide

profitability

gap

Baby Boomers1946 - 1964

75 Million

Millennials1981 - 2000

81 Million

All other industries:

15.9%*

*Source: http://www.compensationforce.com/2015/03/2014-turnover-rates-by-industry.html

Dealership Turnover

Cost to hire and train $10/hour retail employee*

Center for American Progress study http://www.retaildoc.com/blog/8-reasons-why-your-retail-employee-turnover-is-so-high

$3,328

Solution!

Student Employment Motivation Study

Employment Motivation

Agree70%

Agree

81%

Agree54%

Agree

89%

Agree

Employment Motivation

93%

Agree

95%

Agree95%

Agree

97%

Agree

Most important factors in selecting employment

Greatest influence on career choice

Students choose careers based on . . .

Perception that life and work must be in balance

Understanding of how to advance and what their career path looks like

Today’s students

• Serious about their compensation

• Prefer salary-based options even when commission-based positions have higher total pay levels

Step 1: Look from Outside In

What is your differentiator?

- Work environment

- Unusual or special benefits

- Social functions

Step 1: Look from Outside In

What needs improving?

- Departmental infighting

- Work space

- Work / Life balance

Step 2: Evaluate Employment Needs

Where are talent gaps?

Short-term

Long-term

What are the attributes of your next best employee?

Step 2: Evaluate Your Employment Needs

Company culture

Skill sets

Necessary skills

Skills that can be taught

Step 2: Evaluate Your Employment Needs

Get buy-in

- Departmental managers

- Assure employees of their positions

- Have managers assist with identifying employment needs

Step 3: Structure the Internship

Define work for intern:

• Train for a specific job

• Department rotation

• Special projects

Step 3: Structure the Internship

Step 3: Structure the Internship

Write the job / internship description

• What differentiates your dealership?

• What will the intern learn?

• Include social aspects

Step 4: Recruit

From the right places

• Technical schools

• Dealer operations

• Aftermarket –

• Accessory sales

• Online parts sales

• Parts delivery to local shops

Step 4: Recruit

Distance not always a problem

• Relocate for right job

• Assist with housing

• Understand regional demographics

Step 4: Recruit

Career fairs

Get to know Dept Chair AND career services

Speak in the classroom

Interview on campus

Be quick with offers

Have a good internet presence

Step 5: Internship & After

Show career opportunities

Intern feedback

Communicate after internship

Offer employment as student enters senior year

Results

Maguire Chevrolet & PJ

Successful Internships

Plan

Structure

Recruit

Hire

Stay in touch

Internships Lead To . . .

Better

Hires

Long-term

employees

Increased

Profits

Thank you!

Questions?

Donna Wagner

Chair, Professor Aftermarket Management

Northwood University

WagnerD@Northwood.edu