save your dealership time and money with hireology
TRANSCRIPT
The cost of hiring can make a large dent in profitability depending on the hire’s success. According to a recent CareerBuilder survey, 41% of businesses said that a bad hire cost them a minimum of $25,000 and 25% stated that it cost them as much as $50,000. Continue making bad hiring decisions, and that cost adds up.
SPENDING LESS
Dealerships can spend a substantial amount of time and waste significant amounts of money searching for the right candidate—due to the fact that they lack a consistent hiring process. Furthermore, the process will be much quicker if the majority of your interviewees accept the job. The hiring manager should be deciding early on which candidates they’ll be offering jobs to and what exactly the offer entails.
Working with some of the top dealerships across the country, we’ve been able to identify trends and best practices for the automotive hiring process. We wanted to share some of the interesting stats from the rooftops that we’ve helped to see if they can help your organization.
ASSESSING YOUR COSTS
Before you decide where to cut spending, you’ll have to determine how much employee recruitment is actually costing your dealership. Take a look at both your direct costs, like turnover, job board advertising fees and your indirect costs, like additional training or loss of business during a position vacancy. Another fee that can cause a dent in your recruitment spending is from regularly using paid job board posts. Relying solely on job boards instead of your own career site can start to rack up your recruitment bill.
In order to actually spend less time and money on your dealership’s hiring process, you need HR software that can help you identify the team that’ll stick around for the long haul.
Enter Hireology—the auto industry’s leading hiring solution. We’ve worked with dealerships of all sizes to reduce turnover by 50%, time to hire by 80%, and investment per hire by 60%.
Working with hundreds of rooftops across the country, we’ve been able to identify trends and best practices for the retail automotive hiring process. We wanted to share some of the interesting stats from the dealerships we’ve helped to see if they can help your organization.
A SNAPSHOT OF HOW HIREOLOGY SAVES YOU TIME AND MONEY
Here are a few highlighted metrics showing how Hireology helps our dealership locations save time and money this year:
The Hireology process helps dealerships automatically reject over 90% of applicants before entering the candidate stage—saving significant time to focus on the right candidates. From there, our automotive clients typically hire about 9% of their candidates.
For each position opened with Hireology, we see about 84 applicants. Do you actually have the time to interview that many people?
We help dealerships prioritize whom to speak with so these 84 applicants turn into 10 candidates—saving hundreds of hours for each position to fill.
BENEFIT FROM USING A SMARTRANKTM PRE-SCREEN SURVEY
Hireology recommends using pre-screen SmartRankTM survey questions for all of your open dealership positions. They’re an important part of the interview process and allow HR managers to really focus on those interested in the job, as well as those who score the best.
The SmartRankTM survey questions are determined by the job-specific, pre-screen statements the HR manager answers when opening the job, so it’s related and customized to each position. They’re customizable to include knockout questions, such as: weekend schedule availability, certifications, experience level, and others to eliminate unqualified applicants. Only 60% of applicants actually take the surveys — if they don’t complete one, you’ll know that they aren’t seriously interested in the job. We see SmartRankTM surveys as a great first step to understand whom to prioritize in your candidate pool. As you start hiring, Hireology gives you a numerical score to set as a benchmark for your top performers.
Time saved with Hireology SmarRankTM surveys: 11,600 hours
According to The Wall Street Journal, the industry average time it takes to make a new hire is about 25 business days. Hireology can cut that time by nine days, so it only takes your dealership approximately 16 days to make a new hire.
Hireology projects that by the end of 2016, dealerships using our SmartRankTM surveys will save nearly 18,850 hours from the hiring process: over 9 years of full-time work that would be otherwise wasted on unqualified applicants!
As for saving money for your dealership, the recruiter cost savings with SmartRankTM alone is approximately $446 per location—all of which adds up for auto groups with multiple sites. Beyond the SmartRankTM survey, Hireology helps save money by streamlining the process while helping your brand avoid costly recruiter fees.
The industry average cost per new hire is about $3,000, including hard and soft costs. For Hireology dealerships, the average cost of a new hire is $317: nearly 90% less than the industry average.
TAKE ADVANTAGE OF YOUR OWN CAREER SITE
Career sites are a great way to showcase your employment brand and attract better candidates. With Hireology’s Career Site Plus, we’ll create a clean employment website that lets top candidates quickly learn about your business and team. Our mobile-friendly approach means applicants can learn and apply to your positions no matter which device they’re using.
Career sites are a great way to create a stream of highly engaged and qualified candidates that seek you out proactively. Across our customers, the average career site drove only 4.1% of automotive applicants in 2016, but resulted in nearly 30% of eventual hires.
ENSURE QUALITY OF HIRES
Hireology lets managers score your new hires to ensure you’re making the best possible hire for your dealership. 70% of dealership hires made across our network were scored as either “Quality” or “Superior” hires by their managers 60 days after they joined their teams. Hireology makes sure all of your hiring costs are invested in an excellent hire to help your dealership drive more sales and provide an incredible customer experience. nm
HIRING SMART FROM THE GET GO
Developing a process to hire the best candidates for your positions will ultimately save your dealership time and money by avoiding turnover and its related costs. This starts with the proper strategies for hiring qualified employees who will bring in more business to your dealership while being satisfied with the culture and values of your brand.
There are several ways to cut down on recruitment costs. However, by creating a loyal staff of employees and a positive work environment, you’ll keep your positions steadily filled and avoid recruitment costs overall.
