It can truly be one of the biggest nightmares for managers when their best employee unexpectedly resigns. Now, you’ve suddenly gotten an extended list of challenges that you have to tackle in addition to your daily responsibilities. You’ll now have to find another skilled professional to replace a talented team member, which will be no easy feat. On top of that, you also have to consider the impact of the team member’s departure on the rest of your dealership.
Anytime an employee, regardless of where they are in the chain, people tend to notice. Some might even start to wonder whether they need to start a search for a new job. This is why employee job satisfaction and employee retention is so important and should be placed on a high priority. Employee turnover can cost companies in the U.S. upwards of $160 billion per year.
How To Develop Strategies For Employee Retention
In order to succeed in crafting worthwhile strategies that concern our employees, you have to think about things from their perspective. Though no employee is the same and each of them has their own unique goals and desires, you have to assume that they all want to know that they’ll be paid at or higher than the market rates as well as get good benefits. They want to feel appreciated by their employers and managers while also being treated fairly. They want to feel excited yet challenged by their job.
A successful strategy will have to address all of these concerns while also going beyond the basic concerns. Everything starts from the first day of the new hire, from the training to the support, it will set the tone for the employee’s duration at the company.
So, how can you improve employee retentions at your dealership? Well, it starts with paying attention to every single employer-employee relationship area within your organization. With that, you should implement a few key strategies to really boost employee satisfaction and improve the employee retention rate.
What Do Great Managers Do To Improve Retention?
Though not all managers are likely to do the same sort of strategies, there is a general consensus that they implement a few key strategies that really get alter how employees view an organization, or in the case of this article, the dealership.
We found ten strategies that really take a decent manager to greater heights and turn into a great manager since that change can only be brought on if the manager truly cares and values every single one of their team members.
Orientation and Onboarding
The durability of an employee’s time at your dealership starts the day that they are hired. Today’s orientation process is no longer just a stand-alone event, but instead its part of a comprehensive process. The onboarding process covers training, interactive meetings, mentoring programs, and scheduled milestones. It can start from the first day, by simply alerting the front desk that a new employee will be arriving and that they need to treat them warmly. Arranging someone, ideally the manager (you), to personally escort them to their office or workstation and introduce them to the rest of the team.
After that first day, great managers often cover basic company information with the new employee, which are likely to also have been covered during their interviews, such as general information of the company, overview of the industry, mission states, values, company goals, and more. Leading from that first week, great managers often meat with their employees at predetermined points that are calculated from the first day, including two weeks post the first day, one month post, two months post, etc.
It is often seen that great managers pair up their new employees with a mentor, which is shown to help them learn the ropes. New employees are generally also able to offer veteran employees with a new outlook or viewpoint while veterans are able to provide new employees with a wealth of information and resources.
Compensation packages have become essential in this current competitive labor market, which includes, salaries, health benefits, paid time off, bonuses, retirement plans, among other perks. All new and seasoned employees should have a full understanding of all the benefits that they receive.
Rewards System and Recognition
Every person regardless of their industry or job role wants to feel appreciated for everything that they do for the company. Great managers often make it a habit to thank those that directly report to them when they go the extra mile, which can be by sending them a gift card, a sincere email, or even an extra day off.
The automotive industry is infamous for their long working hours, but that can often be the cause of them burning out and thus leading to higher retention rates. Great managers often try to create a healthy work-life balance and show their employees that they understand the importance of it. They generally encourage their staff to take vacation time, especially if certain projects or tasks require later nights. They try to counteract longer working hours by offering simple things, such as later arrivals or extra days off.
Training and Development
Smart and great managers invest in their employee’s professional development by actively seeking opportunities for their growth. They can often be seen asking their direct reports about their long-term and short-term goals. Some organizations cover the costs for their employees to attend industry events or conferences every year, continuing education training or provide tuition reimbursements.
Communication and Feedback
Effective communication is the backbone of any organization, which is something that great managers know. Your employees should be able to come up to your with any concerns, questions, and ideas while also expecting you to be open and honest about any improvements regarding their performance. You should avoid issues building up to the annual reviews.
Dealing With Change
Every workplace goes through some changes at some point, so instead of fighting or hiding those changes, great managers are often very open about the process. They know it’s important to keep their staff informed as much as possible by making announcements and allowing time to answer any questions that they might have.
Working together fosters a culture of collaboration that lets their individuals talents shine while still accommodating their individualistic working styles. Great managers encourage their team to contribute solutions and ideas, while also clarifying business roles, business goals, and team objectives.
Often times, great organizations and their respective managers celebrate major milestones for the team and for individuals. Regardless of the size, whether your team just met their quarterly goal or an employee had a baby, you should seize the opportunity to celebrate together with your team with a group excursion or shared meal.
All in all, you’ll find that great managers try to incorporate many, if not all, of these strategies within their retention strategies. In addition to that, they also try to reassess these strategies annually, just to ensure that they are staying current on the market benefits and salary rates while also incorporating the best practices in developing manager-employee relations and workplace culture. All of this helps managers to keep their staff’s morale high, the turnover rate low, and the organization’s success high.