As discussed in Part 1, we must try to prevent turnover. However, if we listen to the research, we will spend more time preparing for turnover than trying to prevent it. People in Generation Z have consistently indicated they plan for a shorter tenure in their positions. Most of the time they plan to stay with an employer no more than 3 years. We can try to stretch that out, but we have to accept they have different values, and it would be wise for us to prepare.
I frequently ask dealers, “How long does it take a for a new parts person to be proficient on the counter”? The answer is usually 2-3 years. We don’t have that long!
The good news is that the effort we spend in our Parts Department getting prepared for turnover just makes our business better all around. There are 3 broad areas we can focus on to be more prepared:
-
Standardize – As parts people, we like to have a process and follow the process every time. Sometimes so much that we annoy our co-workers in other departments. But even with our need for process we sometimes create or live with chaos. When I talk with dealers about standardizing their Parts Department, I always tell them, “It’s not about you. I know you can juggle this in your mind and adjust. It’s about the next person you hire.” Let’s look at a few common areas to standardize.
- Bin Location names – is it consistent in your stockroom? It doesn’t matter if your rows are named left to right with numbers or with letters. What matters is that you are consistent. Is the lowest shelf always called “1” or do you have some areas where “1” is on the top. Or maybe it “1” in this section but in the new area you use “A” on the lowest shelf.
- On the counter do you have different processes based on supplier? How you handle special orders, how you apply freight charges, handle core charges, etc. A red flag would be if you find yourself saying “we do it this way, except for this.” This one is difficult because you have so many suppliers. Keep in mind, if you just hired a parts person from a different industry this will seem very complicated.
-
You may want to consider creating Standard Operating Procedures (SOP). They can be simple one-page documents that outline how to do certain processes.
-
Simplify – You may be so close to your parts operations that you can’t really see areas that are complicated. To a new person, it may feel like a huge learning curve. There are a few things we can do to simplify our business:
- Consolidate – Do you need 2 suppliers for batteries or tires or hardware? Could we shift our supply purchases to one company from 3 or 4? Keep pressing and find those examples where you have multiple sources for very similar products.
- Rationalize – Are there products you can drop all together? I am not suggesting you shrink your business, but rather identify those products where the net margin is not enough to justify the effort. Usually, I find that dealers wanted to do this and knew they needed to but never had the time. We have to treat this like a crisis and find the time.
- Outsource – Identify what is core to your business and focus on that. If you can find someone who is better or more efficient at a task, then hire them. It could be as simple as mowing the grass or plowing snow. It could even be a service you provide like mounting tires or making hoses. These decisions vary based on your business. Just remember we have a shortage of talent and the talent we have is turning over more quickly.
-
Always Be Recruiting – Building a talent pipeline is a skill. Even when you don’t have an opening be on the lookout for your next employee. If someone did an exceptional job taking care of you at another business, take action. I usually hand the person my card and say something like “if you ever want to do something different give me a call” or “you should stop by our dealership sometime when you are in the area, you would love to see what we are doing.” Somehow build a connection. It may not happen tomorrow, but someday they could be your next new employee.
I don’t like to lose. Spending more time preparing for turnover than trying to prevent it might feel like you are losing or giving up. Ten years ago I would have agreed. However, the workforce has changed, and we have to adjust. It’s time to Prevent Turnover AND Prepare for Turnover.
