7 Actions To Onboard Millennials In Your Dealership

Jennifer Suzuki President and Founder | e-Dealer Solutions| Aventura, FL 800.625.1590 | jennifer@edealersolution.com

@edealersolution #NADA100

Tom Carney Lead Instructor, Variable Operations |National Automobile Dealers Association| Tysons, VA| tcarney@nada.org

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Objectives• Update pre and post hire processes to attract and

retain younger sales associates

• Identify pay plans that will motivate and retain

• Prepare consistent training programs that engage your new hires all year long so you promote career growth

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Kahoot.it! Poll (This slide will not be used - it is an indicator for us to go online and use this app. to poll the audience the following questions)

1.  What percent of sales consultants reached the 3 year employment milestone? 

a. 45% b. 55%  c. 63% d. 33%

  2. Turnover of Millennials increased at dealerships

to: 

a. 25% b. 35% c. 52% d. 70%

3. The number of Millennials hired by dealerships increased to: 

a. 20% b. 30% c. 50% d. 60%

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4. Today’s pay plans must reflect the importance of: 

a. More base pay and benefits b. Flexible Hours, c. Transparency d.lear Performance Benchmarks

5.  When on boarding Millennials you must get them up to speed quickly and turn them into ‘knowledge workers’. 

a. True b. False

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“Dealers cannot profitably create and keep customers without a

talented and dedicated workforce.”

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- National Automobile Dealers Association, 2016 Workforce Study

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“Overall every department reported improved revenues and earnings, as well as increased employment. It is this growth that is also

driving an increased need to focus on employees and the role of the workforce.”

- National Automobile Dealers Association, 2016 Workforce Study

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Statistics

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What Does This Mean To You?

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Statistics - Key Points

• Only 33 percent of all sales consultants reached the three-year tenure milestone.

• Salesperson turnover is 67%.

• Average dealership hiring efficiency has been around 65 percent for the last four years.

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Statistics - Key Points• 39 percent of terminations happened within the

first 90 days for sales consultants.

• Greatest increase in Millennial new hires – seven percentage points – was sales consultant.

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Pre and Post Hire Processes

Where can improvements be made?

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If You Are A New Hire In Your Dealership, How Might You Feel On Your First Day?

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How Can You Create Excitement?

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Pre Hire Steps

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GM introduces existing team member to new hire via email

Team member calls new hire to welcome, ensure there are no concerns, establish date/time

at dealership to meet staff

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Team member handles new hire email address, work space, logins including computer, iPad, Surface

Pre Hire Steps

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Pre-First Day - New Hire Visits Dealership • New hire introduced by team

member to all department heads and sales team via dedicated meeting

• New hire receives applicable training manual flash drive/dropbox/pdf

• Receives upcoming training schedule that begins on start date

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(School Loans: $42,000)

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• Receives career path plan with goals, standards and benchmarks to include sales goals for first, second and third month

• GM/Manager provides pay plan copy

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Pre-First Day - New Hire Visits Dealership

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New Hire First Day

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Welcome gift ready on new

hire workspace

Team member welcomes and introduces work space,

business cards, email, logins “cheat sheet”, lunch

room, conference room, bathrooms

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New Hire First Day

General Manager introduces new hire to sales team in one-on-

one meeting

General Manager meets with new hire to review

growth plan, next 30 day goals, work

schedule, expectations,

scheduled time of sales meetings

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New Hire First Day

Start certification/online product training modules

HR website/ complete online

forms

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Sales Member - Pay Plan Options

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One Two

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Pay Plans• Performance based and transparent

• Salary + Bonus / Commission + Bonus

• Year - end bonus

• Retention bonus

• Tuition student loan subsidy

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Sales Manager’s Pay Plan – Gross and Volume Driven

Manager 3.5% = <100 Units 3.75% = 100 Units 4.00% = 130 Units 4.25% = 160 Units 4.50% = 190 Units 5.00% = 200 Units 5.50% = 210 Units

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

26% retro to 1st unit27% retro to 1st unit28% retro to 1st unit

30% retro to 1st unit29% retro to 1st unit

Salesperson Pay Plan

Sales Manager Pay Plan

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Example 1

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23Example 1

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Medium-Sized Town

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Example 2

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Example 2

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Pay Plan Recap (aka, the ‘Millennial Pay Plan’)

• Pay plan in place since April 2015 • 3 teams of 6 currently @ 60-75 sales per month per team. Adding

additional team in February. • Recent Modification: Minimum of 24 units sold in 90 days if not

their salary goes to $1500 month for the next 90 days. • Average sales consultant earns $5500 / month ($66k / year) • Team leaders making between $90k and $110k • 9 month turnover is 2

Example 2

What has this pay plan accomplished?

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Salary & Monthly Bonus Pay Plan Example 3• Salary: $600/week [$31,200/year] + Monthly Bonus Matrix

Sales Schedule: • 42 Hour Work Week

• Example: (Wednesday shown as Day Off in this example)Monday 9:00am – 8:00pm (1 hour lunch) 10 hoursTuesday 9:00am. – 5:00pm (1 hour lunch) 7 hoursWednesday OFFThursday 9:00am – 8:00pm (1 hour lunch) 10 hours Friday 9:00am – 6:00pm (1 hour lunch) 8 hoursSaturday 9:00am – 5:00pm (1 hour lunch) 7 hours

• 3 set teams with 1 Saturday off per month • A Team: off Tuesday with 1st Saturday off • B Team: off Wednesday with 2nd Saturday off • C Team: off Thursday with 3rd Saturday off • **The Saturday off replaces weekday off.**

• Company vehicle and/or demo allowance are not included in this pay plan offering.

• Note: All paperwork, titles and monies due (i.e. deposits, COD, registrations) must be completed and turned into the sales mgmt. office for bonuses to be paid.

Monthly Bonus Matrix

• Volume Bonus:

• 10 Unit level requires 3 used vehicles

• 12+ unit levels require 5 minimum used vehicles

• Gross Profit Bonus: • Requires a minimum $2,200 Used Vehicle Front-

End GPU

• CSI Bonus • See Carbone CSI President’s Club Bonus criteria

Sold Units

Volume Bonus

Gross Profit Bonus

CSI Bonus Total Bonus

10 $400 $150 $250 $800

12 $500 $250 $250 $1,000

14 $750 $500 $250 $1,500

16 $1,000 $750 $250 $2,000

18 $1,250 $1,000 $500 $2,750

20 $1,500 $1,500 $500 $3,500

22 $1,750 $1,750 $500 $4,000

24 $2,000 $2,000 $500 $4,500

26 $2,250 $2,250 $500 $5,000

28 $2,500 $2,500 $500 $5,500

30 $3,000 $3,000 $500 $6,500

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Draw:

• $405.00 per pay period.

Commissions:

New Vehicles: Used Vehicles:

20% with a $350.00 pack, 20% with a $750.00 pack,

at minimum $100.00 flat at minimum $100.00 flat

Upgrade Program commissions:

New Vehicles: $100.00 flat Used Vehicles: $225.00 flat

Monthly Demo Program:

• Employees will receive an allowance of $400.00 per month or company demonstrator vehicle.

• Employees will qualify for monthly Demo program eligibility when employee has sold a total of 12 units. Employee must maintain a minimum of 8 units sold per month.

• Employee is not eligible for the Demo Program in any month in which he/she does not sell at least eight (8) units.

• If Employee does not sell at least eight (8) units for two (2) consecutive months, he/she will become ineligible for the Demo Program (losing the monthly demo bonus or demo vehicle privilege). If the Employee loses eligibility in the Demo Program, he/she must sell 12 units to qualify for eligibility.

Draw / Weekly Commission / Monthly Bonus Pay Plan

Example 3

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End of Month Bonus:

Unit Bonus:

8 units = $500

10 units = $1000

12 units = $1200

14 units = $1400

16 units = $1600

18 units = $1800

20 units = $2000

21+units = +$100.00 per unit

Note: All paperwork, titles and monies due (i.e., deposits, COD, registrations) must be completed and turned into the sales mgmt. office for commissions to be paid.

Draw / Weekly Commission / Monthly Bonus Pay Plan

Example 3

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Example 4

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What Do These Pay Plans Tell Us?

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Should You Offer Two Types?

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Career Path Goals

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Level 1: Apprentice 0-90 days of employment.  Must complete the following to go up to Level 2• Achievement 1: New Hire Training Completion• Achievement 2: OEM Product Training Completion• Achievement 3: Sell 12 Vehicles (within the first 90 days)• Achievement 4: “Play” (work) for at least 60 Days (within

the first 90 days)

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Career Path Goals

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Level 2: Associate 91-180 days of employment.  Must complete the following to go up to Level 3• Achievement 5: Phone Skill Training Completion• Achievement 6: Used Vehicle Selling Skills Completion• Achievement 7: OEM Product Certification• Achievement 8: Sell 25 Vehicles since leveling-up to Level 2• Achievement 9: “Play” (work) for 6 months in a row

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Training Program and Topics35

Week One Three Aspects to Convey When Communicating

Week Two How to Review Internet Leads Before Contacting

Week Three Leaving Voicemail MessagesWeek Four Outbound Phone Call - Introduction

Week Five Outbound Phone Call - Present the Value in you and Buying Experience

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Week Six Outbound Phone Call - Identify Hot Buttons, Deal Breakers, Vehicle Flexibility

Week Seven Outbound Phone Call - Tie the Trade Appraiser to the Meeting Time

Week Eight Outbound Phone Call - Set Firm Appointments

Week Nine Evaluate Outbound Phone Calls

Week Ten The Inbound Phone Call Greeting

Training Program and Topics

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Week Eleven Obtain Prospect Contact Information on Phone Up

Week Twelve Evaluate Inbound Phone Calls

Week Thirteen Effective Chat Techniques

Week Fourteen Documenting Notes in CRM

Week Fifteen Appointments and the CRM

Training Program and Topics

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Career Path Goals

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Level 3: Consultant  6 – 12 months of employment.  Must complete the following to go up to Level 4• Achievement 10: Ecommerce Training Completion• Achievement 11: Advanced Selling Skills Training Completion• Achievement 12: Self-Improvement Initiative• Achievement 13: Mentor a New Hire for 30 Days• Achievement 14: Sell 60 Vehicles since leveling-up to Level 3• Achievement 15: “Play” (work) for 1 Year

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Level 5: Master  2/3 years of employment.  Would then be open for more advance training• Achievement 20: Financial Services Training Completion• Achievement 21: Desking Training Completion• Achievement 22: Sales Manager Training Completion

Career Path GoalsLevel 4: Professional 1 – 3 years of employment.  Must complete the following to go up to Level 5• Achievement 16: Master Sales Skills Course Completion• Achievement 17: Double Down on Self-Improvement• Achievement 18: Sell 144 Vehicles since leveling up to Level 4• Achievement 19: “Play” (work) for at least 2 years

Questions

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Please visit the NADA Pavilion in the Expo Hall for

information on accessing electronic versions of this

presentation and the accompanying handout

materials, and to order the workshop video recording.@edealersolution

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Jennifer Suzuki President and Founder | e-Dealer Solutions| Aventura, FL 800.625.1590 | jennifer@edealersolution.com

Tom Carney Lead Instructor, Variable Operations |National Automobile Dealers Association| Tysons, VA| tcarney@nada.org

7 Actions To Onboard Millennials In Your Dealership