Hireology Releases Retail Automotive Industry Survey about Current State of Hiring

June 21, 2016

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 Provider of Employee Selection Technology Finds Room for Improvement in Hiring Process; Provides Keys Takeaways for Automotive Dealerships

CHICAGO–(BUSINESS WIRE)–In an effort to better understand hiring challenges facing dealers, Hireology, partnered with DrivingSales, a respected resource for auto dealership professionals, for a survey on the state of hiring in the retail automotive industry: how it’s being done, who makes the decisions and whether or not dealers are succeeding in building high-performing teams.

“Our research shows that dealerships are starting to come to terms with the reality that they must invest in HR systems to compete in today’s environment,” said Hireology’s CEO and co-founder Adam Robinson, noting that 70 percent of small operators and half of dealer groups reported making changes to their HR policies in 2016.

“However, there still remains a lot of progress to be made if retail automotive dealers wish to remain competitive. Dealers will continue to struggle with a broken hiring process unless they learn to treat talent acquisition as a core and critical function of their business.”

A shifting hiring landscape is making it more difficult for hiring managers to recruit and retain qualified candidates. As a result, auto dealers are wasting money – up to $600,000 – on turnover in crucial functions, such as sales, which impacts team morale and management effectiveness.

Other key findings reveal:

  • Who’s Calling the Shots When it Comes to Hiring: The research shows that 70 percent of General Managers are making the final hiring decision, yet only 20 percent of respondents report that they provide hiring managers with guides and templates for candidate evaluation.
  • Hiring Managers Continue to Struggle to Understand Process: Dealers that fail to provide a structured hiring process to their managers suffer from higher turnover rates than dealers that require their managers to follow a structured hiring process.
  • Dealers Have Been Slow to Adopt HR Services: Respondents revealed that retail automotive dealerships fail to take advantage of tools that would lead to improvement in quality of hire. Only one-in-five dealers have adopted applicant tracking into their hiring process and less than 10 percent use advanced HR solutions.

The challenges facing hiring managers are only going to worsen, making a clear case for automotive dealers to begin taking hiring seriously by investing in tools and processes that reduce hiring cycle times, lower cost per-hire and put control back in their hands. Hireology’s research shows that by implementing an HR tool and process, the average dealership store can add $368,000 of net profit back per year.

As part of the survey methodology, DrivingSales surveyed 80 retail automotive dealer groups, ranging in size from small to large and representing more than 200 rooftops. To download the ebook, visit: http://resources.hireology.com/driving-sales-ebook-download.


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