Hiring the wrong applicant can erode morale, decrease productivity, and corrode the dealership’s image, not to mention the considerable expenses spent and lost in the hiring and training process.

First, here are some expenses often incurred when choosing an unqualified candidate.

• Hiring costs
• Total Compensation
• Cost of maintaining employee
• Disruption costs
• Mistakes and failures

Now let’s look at the particulars

Team Spirit is Corrupted

If you choose a new hire poorly, they sometimes bring bad habits and destructive attitudes that can influence the entire team; this virulent loss of devotion and gusto can be nearly impossible to repair without redeveloping your team, depending on how susceptible its members are and the caliber of employee you didn’t properly vet. Moreover, listless workers are difficult to motivate once tampered with by the former employee.

Even worse, team members dissatisfied with the unfavorable work environment may quit. Meanwhile, efficiency dwindles, and your established staff must pick up the slack. Your employees become overworked and exhausted, productivity further suffers while the dealership endures monetary loss, and customers search elsewhere for their next vehicle.

Productivity Plummets

This cannot be stressed enough. Think about the amount of effort taken to hire one person. A lot of time goes into creating, managing, and monitoring job posts. Then there’s the tedious time spent sifting through resumes and conducting interviews, usually pulling several people from their daily tasks.

Training a new employee can take weeks or months and hinder the team because the trainee requires auditing and takes time to get acclimated to the processes. Though each employee helps along the way, their work suffers during these months, which means the dealership suffers. When a new hire doesn’t work out, the hiring process repeats, along with the accompanying costs associated. Also unhelpful is after perusing so many applicants, it’s tough to distinguish one from the next.

When you have a high turnover rate and consistently have openings posted on job boards, the dealership can appear unstable, reflecting poorly on management. Skilled and experienced people don’t want to work at a dealership known for having difficulty keeping employees. The bottom line is you must take the appropriate time to hire your next team member because one bad hire can drastically affect your business. Contact Vanguard Dealer Services for more information!