your most important asset best practices for engaging employees

Your Most Important AssetBest Practices for Engaging Employees

Sonja Moseley• Director of Certification & Benefits, MRAA• Previously the Executive Director of the Arizona Parks &

Recreation Association• Arizona State University & University of Minnesota

A Tale of Two Bosses

Boss #1 Boss #2

• Did not spend time recruiting

• Informal interview• Frowned upon new

approaches• Negative feedback• They were right, I was

wrong

• Interviews with staff and board President

• Encouraged me to take responsibility in my own way

• Positive and constructive feedback (both formal and informal)

• Invested in me• Set me up for success• Admitted when they were

wrong and were not afraid to laugh at themselves

What is your most important asset?

Your people!

• Between 40% and 80% of customer satisfaction and loyalty is directly correlated to the relationship between employees and customers. (Brooks)

Industry Examples

(Excluding MarineMax)• Locations range from 1-7 • Employees range from 8-135• Businesses started 1940-2001

(excluding Constitution Marina)• 5-14 boat brands carried• 2-12 engine brands carried• Average tech efficiency: 76.20• Average CSI score: 95.95

Data was pulled from the last 1-3 years

The right people in the right seats

Establish goals & expectations

Monitor progress

Offer feedbackMonitor satisfaction

Encourage retention

Develop & Train

Employee Best

Practices

Getting the right people on the bus… in the right seats

• As much as 80% of employee turnover is due to bad hiring decisions. (Harvard Business Review)

• The average cost of a bad hiring decision can equal 30% of the individual’s first-year potential earnings. (US Department of Labor and Statistics)

• 36% of senior leadership said the leading factor of a failed hire is a poor skills match. (Robert Half)

What the best hiring managers do differently: • Clarify.• “Every time you hire a new employee,

your dealership’s culture gets either stronger or weaker.” – David Spader

• Refuse to compromise.• Fully engage.• Modify the job, not the person.• Value potential over experience. • Take full responsibility.

(The Adler Group)

Topgrading Competencies

Example: MarineMax• First-ever Boating Industry Top 100 Dealer of the Year• Top 100 Hall of Fame • All locations are Brunswick Master or Brunswick Platinum Master

Dealerships• All locations are Marine Industry Certified Dealerships

Best Practices for the Best People• Topgrading senior leadership• Featured case study in Topgrading

• 25% A player or A potential to 90% in 3 years

“There’s nothing that’s done more for our company than Topgrading. We began the process in 2002 and we’re totally convinced Topgrading has significantly improved our bottom line.” - Bill McGill

Port Harbor Marine• 2013 and 2014 Top 100 dealers top 20• Five Star Marine Industry Certified Dealership

Best Practices for the Best People• Where do you see yourself here?• Sales vs. service

The right people in the right seats

Establish goals & expectations

Monitor progress

Offer feedbackMonitor satisfaction

Encourage retention

Develop & Train

Employee Best

Practices

Establish Goals & Expectations• Only 40% of the workforce know about their company’s goals,

strategies and tactics. (Bain & Company)

• 30% of senior leadership claimed that the second leading factor of a failed hires was unclear performance objectives. (Robert Half)

Example: Legendary Marine• Top 100 Hall of Fame• Five Star Marine Industry Certified Dealership

Goals & Expectations Best Practices• Culture of continuous improvement• Each division is responsible • Annual retreat• Accountability

Example: Clark Marine• 2013 Top 100 dealer• 2014 Top 100 Best in Class: Best Service Department• Brunswick Five Star Dealer• Five Star Marine Industry Certified Dealership

Goals & Expectations Best Practices• Handbook with process maps• Shadow period of 10-15 days• Annual service efficiency benchmarks

Incentives • Individual incentive programs increase performance by an

average of 22%, while team incentives can increase performance by as much as 44%. (Incentive Research Foundation)

• 69% of employees say they would work harder if they felt their efforts were better recognized. (Globoforce)

What motivates your team?

What Motivates MRAA?

The right people in the right seats

Establish goals & expectations

Monitor progress

Offer feedbackMonitor satisfaction

Encourage retention

Develop & Train

Employee Best

Practices

Monitor Progress• More than 80% of small business owners said that they don't

keep track of their business goals. (Annual Staples National Small Business Survey)

• 84% of managers don’t know how to accurately measure their team members. (Human Resources Employee Engagement Statistics)

Example: Port Harbor Marine• 2013 Top 100 Best in Class: Best Industry Advocate• Ranked #9 of the 2014 Top 100 dealers• Brunswick Master Dealer• Five Star Marine Industry Certified Dealership

“Knowing what the goal is and then knowing where you stand towards that goal with an opportunity to affect change helps keep you focused.” – Rob Soucy

Best Practices for Monitoring Progress • Budget Maestro• Budget• Compare to prior year• Project assumptions • 4 reports sent to each manager/director each month

Example: Clark’s Marine• 2013 Top 100 dealer• 2014 Top 100 Best in Class: Best Service Department• Brunswick Five Star Dealer• Five Star Marine Industry Certified Dealership

Best Practices for Monitoring Progress• Service department efficiency reports • Performance reviews based on agreed upon goals and

incentives

Need help?• Sample One-Page Budget Worksheet

• Sample Inventory Management Worksheet

• Sample Net Cash Condition Worksheet

The right people in the right seats

Establish goals & expectations

Monitor progress

Offer feedbackMonitor satisfaction

Encourage retention

Develop & Train

Employee Best

Practices

Feedback• Managers giving little or no feedback to their workers fail to

engage 98% of them. (Gallup)

• 65% of employees say they want more feedback. (Gallup)

How often do you offer feedback?• Daily?

• Weekly?

• Monthly?

• Quarterly?

• Annually?

• All of the above?

Example: Russo Marine• 2014 Top 100 Best in Class: Best Industry Advocate• Top 100 Hall of Fame• Brunswick Platinum Master Dealer• Five Star Marine Industry Certified Dealership

Best Practices for Employee Feedback• Formal progress review at 30, 90 and 180 days after hire and

annually thereafter

Example: Paris Marine• 2013 Top 100 dealer• 2014 Top 100 dealer editor’s choice

Best Practices for Employee Feedback• 45 day Initial Performance Evaluation

Not sure where to start? • MICD performance appraisal

The right people in the right seats

Establish goals & expectations

Monitor progress

Offer feedbackMonitor satisfaction

Encourage retention

Develop & Train

Employee Best

Practices

Employee Satisfaction

“The number one factor in increasing the level of highly satisfied and engaged customers in your business is the level of highly satisfied and engaged employees in your business.” – John Spence

• 52% of Americans are unhappy at work. (Conference Board)

• Companies with engaged employees outperform companies with disengaged employees by up to 202%. (Gallup)

Employee Satisfaction Survey

• Top benefit of Certification

• Anonymous

• Time-saving

Example: The Sail & Ski Center• 2013 #3 Top 100 dealer• 2014 Top 100 Best in Class: Best Training and Benefits• 2014 #4 Top 100 dealer• Brunswick Master Dealer• Five Star Marine Industry Certified Dealership

Best Practices for Employee Satisfaction • Annual employee appreciation awards program• Award of excellence• Technical achievement award• Brass plug award

Example: Lynnhaven Marine• 2013 Top 100 dealer• 2014 Top 100 Editor’s Choice

Best Practices for Employee Satisfaction • Employee of the year bonus• Good attitude raises/bonuses• Staff training day with surprise bonuses/prizes• On the spot recognition

The right people in the right seats

Establish goals & expectations

Monitor progress

Offer feedbackMonitor satisfaction

Encourage retention

Develop & Train

Employee Best

Practices

Employee Retention• 75% of people who willingly leave their jobs don’t quit their

jobs, they quit their bosses. (Roger Herman)

• A 5% increase in employee retention can generate a 25% to 85% increase in profitability. (Harvard Business Review)

• On average, it costs $7,000 to replace a salaried employee, $10,000 to replace a mid-level employee, and $40,000 to replace a senior executive. (HR.com)

Millennials (Born 1980-1994)

• 60% of Millennials recognize their current position as a stepping-stone. (Time)

• 84% say that helping to make a positive difference in the world is more important than professional recognition. (Bentley University's Center For Women And Business)

• This year, Generation Y (1982-1995) will outnumber Baby Boomers (1946-1964) in the workforce. (Sarah Sladek)

Example: Constitution Marina• 40% of employees have been there for 10-20+ years and an

additional 30% have been there for 5-10 years.

Best Practices for Employee Retention• Create pathways• Train to take over

Why do your employees stay?

The right people in the right seats

Establish goals & expectations

Monitor progress

Offer feedbackMonitor satisfaction

Encourage retention

Develop & Train

Employee Process

Development & Training • Only 39% of employees think senior leadership does a good

job of developing future leaders. (Towers Watson)

• Companies that invest $1,500 per employee in training compared with those that spend $125 experience an average of 24% higher gross profit margins and 218% higher revenue per employee. (American Society for Training and Development)

Example: The Sail & Ski Center• 2013 #3 Top 100 dealer• 2014 Top 100 Best in Class: Best Training and Benefits• 2014 #4 Top 100 dealer• Brunswick Master Dealer• Five Star Marine Industry Certified Dealership

Best Practices for Development & Training• Book club• Webinars/online training• Tuition reimbursement plan

Example: Colorado Boat Center• 2014 Top 100 dealer• 2013 Top 100 Best in Class: Best Training Program• Brunswick Master Dealer• Five Star Marine Industry Certified Dealership

Best Practices for Development & Training• In-house training• Research the competition• Manufacturer trainings

MDCE

mraatraining.com

MRAA Resource Center• Nearly $4,000 worth of resources and growing!• 2015 Guides to Success

The right people in the right seats

Establish goals & expectations

Monitor progress

Offer feedbackMonitor satisfaction

Encourage retention

Develop & Train

Employee Process

“The ability to make good decisions regarding people represents one of the last reliable sources of competitive advantage, since very few organizations are very good at it.” – Peter Drucker

Comments/Questions