Iowa Auto Dealer (Fall/Winter 2017)

Fall/Winter 2017

Woodward & Associates, Inc.

1707 Clearwater Avenue ·P.O. Box 1584 ·Bloomington, IL 61702 (309) 662-8797 ·Fax (309) 662-9438 ·Email woodwardassoc@cpaauto.com ·http://www.cpaauto.com Providing service to over 25 Iowa dealerships and their related entities.

We specialize in automobile dealers in the following areas:        

Certified Public Accountants

Memberships in:

     

Dealership valuations Automobile dealer legal support Buy-Sells for dealerships LIFO inventory computations Financial statement analysis Corporation Income Tax returns Personal Income Tax returns CPA prepared financial statements Dealer estate planning Employee theft consulting Internal control studies and audits Profit consulting Training office managers/CFO’s 401K Audits

AUTOCPA Group The American Institute of Certified Public Accountants Licensed to practice in Iowa

Serving more than 250 Automobile Dealers throughout the United States

FROM THE PRESIDENT

for the love of automobiles Iowans’ passion for vehicles starts in the showroom.

There are more motor vehicles in Iowa than there are Iowans in Iowa. That tells me pretty clearly that Iowans want, need, and demand a variety of vehicles. It also demonstrates that Iowans love their cars and trucks. There is compelling evidence that we do. The statistics bear it out. The key statistic is the number 465,000. That is the number you get if you subtract the total population of Iowa from the total number of motor vehicles registered in this state. Stated another way, if every man, woman, and child in Iowa went out and sat alone in a car or truck, there would be 465,000 cars and trucks left over.

The passion that Iowans have about their cars and trucks starts in the showrooms of Iowa’s franchised new car and truck dealerships. It is financed and made affordable in the F&I offices of those dealerships. And it is fostered and maintained in the service departments of those very same stores. That passion is evident in the 16,000 Iowans who go to work every day in Iowa’s franchised new-car and new-truck dealerships, and Iowa Auto Dealer is written for and about those very Iowans who own, manage, and staff the 300 automobile dealerships in this state.

There are plenty of publications out there that cover and report on cars and trucks. Those magazines cater to every audience from motorheads to wary and cautious car shoppers, but the magazine that is in your hands is the only one that specifically and exclusively covers and celebrates Iowa’s automotive retailers.

Publishing Iowa Auto Dealer is totally different than almost everything else that the Iowa Automobile Dealers Association and its staff does. Like Iowa’s automobile dealers, we are laser-focused on the day-to-day details of selling, financing, and servicing cars and trucks. While Iowa’s dealers and their employees are focusing on the actual transactions, IADA staff is typically working on narrowly focused projects like publishing the regulatory newsletter; maintaining the online legal library; engaging in legislative lobbying and public policy advancement; keeping the forms inventory current, stocked, and shipped; and working in countless other ways to address and supply the needs of IADA member stores so they can sell and service those millions of cars on Iowa’s roads.

And it is because IADA’s members and staff are so focused on the details and even the minutiae of automotive retailing that Iowa Auto Dealer is such a welcome, exciting, and refreshing idea. Please take some time right now (or just as soon as your last customer of the day buys) to step away from the frantic pace of auto retailing to read what is between these covers. It is designed to recognize and memorialize all of the good stuff that is going on in our state and in our industry. And it is also intended to be one more tool that Iowa’s automotive industry can use to make the best dealers in the world even better.

I am proud to lead your association, and I love to brag about the men and women who own and work in Iowa’s automobile dealerships. You literally drive commerce in this state while providing some of the best jobs, charity, and civic engagement in more than 150 Iowa communities. Collectively, IADA’s members and their employees are the reason that Iowa’s motor vehicle fleet is on the road and in good repair. Iowa Auto Dealer is your association’s way of saying “Thank you,” “Great job,” and “Let’s all keep doing it even better!”

Bruce Anderson IADA President

FALL/WINTER 2017 1

PHOTOS: COURTESY OF HAWKEYE COMMUNITY COLLEGE (TOP LEFT); COURTESY OF CASEY JOHNSON (TOP RIGHT); COURTESY OF MARTHA WOLF (BOTTOM LEFT); BY STEVE KOWALSKI (BOTTOM RIGHT)

in this issue

1111 Office Park Road West Des Moines, Iowa 50265 p: 800.869.1900 CHAIRMAN Jim O’Halloran VICE CHAIRMAN Jeff Haun PRESIDENT Bruce Anderson SECRETARY Mike Clemons TREASURER Jeff Finch IMMEDIATE PAST CHAIRMAN

Brad Deery DIRECTOR AT LARGE

Kris Kramer

DIRECTOR AT LARGE

Danny Wilson

HEAVY DUTY TRUCK DIRECTOR

departments

INDEPENDENT DIRECTOR

01

Jon McCoy Dale Finch

DISTRICT ONE DIRECTOR

Dave Wright

DISTRICT TWO DIRECTOR

Patrick Eads

DISTRICT THREE DIRECTOR

Matt Brown

DISTRICT FOUR DIRECTOR

John Gookin

NADA DIRECTOR Mark Birdnow EDITOR Brittany Bungert Iowa Auto Dealer (ISSN 2472-2634) is a bi-annual magazine produced for members of the Iowa Automobile Dealers Association. © 2017 Iowa Automobile Dealers Association For advertising information, contact Brittany Bungert at 515.226.1900.

Cover Photo: Governor Kim Reynolds visits a dealership while traveling the state on her 99-county tour.

COVER PHOTO BY STEVE KOWALSKI

2 IOWA AUTO DEALER

from the president There are more vehicles in Iowa than people.

04

pro tip Best practices for buying insurance.

06

14

10

16

show & tell Giving back and giving thanks.

iada printing & promotions Build your brand with logoed apparel.

iad foundation Grants give the gift of learning.

five things Governor Kim Reynolds has a message for dealers.

20

q&a Get a handle on employee phone use.

32

the close Advice from top dealership trainers.

features

23

by the numbers Iowa automotive statistics.

24

above and beyond Putting the “extra” in extraordinary dealership experiences.

28

hitting refresh How to handle a high employee turnover rate.

JIM ARENSON ATTORNEY AT LAW • Buy-Sells, Including Complete Documentation • Manufacturer Disputes and Termination • Manufacturer Negotiations • Franchise Relocation • Dealer Defense • Assistance in Finding a Dealership to Purchase • Assistance with Due Diligence in Purchasing a Dealership • Assistance in Selling Your Dealership • Auto Dealer Consulting for Operations/Management Financing/Expense Reduction/Crises Management • Employee Disputes • Transition Planning/Succession Planning • Real Estate Issues

ARENSON LAW GROUP, PC

425 Second Street SE Suite 900 Cedar Rapids, IA 52401 T: 319-363-8199 F: 319-363-8448

JIM ARENSON jarenson@arensonlaw.com

www.arensonlaw.com

BRONZE SPONSOR OF IADA AND LONGTIME MEMBER OF NADC

PRO TIP

take cover

Don’t wait until a rainy day to make sure your dealership has the insurance it needs.

Buying insurance is a bit like buying a car. At least, that’s how Bob Skow, president of the Independent Insurance Agents of Iowa, sees it.

“You often get what you pay for,” Skow says. “Not always, but often.”

With policies covering everything from property to ransom, comparing options for similar insurance products can be confusing unless you are fluent in industry jargon.

In short, shopping for insurance can be a stressful experience for businesses. Iowa Auto Dealer spoke with three insurance experts to get the best advice for dealerships reviewing their insurance needs.

Don’t get quotes yearly.

“They need to be looking at it every three to five years,” says Brian Hughes of LMC Insurance & Risk Management.

“Sometimes they burn the markets out by shopping it too often. If you tell your agent that you’re just keeping them honest, that implies that you already don’t trust your agent.” Hughes says that wasting time by

4 IOWA AUTO DEALER

getting yearly quotes has historically been a big issue for auto dealers.

Skow notes one exception to that rule— health insurance. “That’s one area that probably every year you ought to have a good conversation about what’s going on,” Skow says, adding that “the marketplace is under a lot of pressure.”

Pick the most important factors.

There are three factors to every product: price, quality of product, and quality of service, says Steven Gibson, president of Dealer Risk Services, a Florida-based firm that provides insurance expertise to the automotive retail industry. “In today’s marketplace, it is almost impossible to obtain all three.

So, it’s important to choose wisely the two that are most important,” Gibson says. “Obviously, the offerings need to be competitive, but insurance must be moved out of the pure ‘expense’ mindset and into the area of ‘valued protection.’”

Make sure you understand what you’re buying.

Can your insurance agent or broker explain exactly what they are selling you and what the policy covers?

This is essential with cyber insurance policies, says Hughes.

“No two

policies are the same with cyber. You really need to understand how the policy reacts to different situations.”

Ask questions.

“Don’t assume you have coverage for something,” says Skow. “Ask the question.” That is especially important if you’re dividing your business among agents. “It’s important if you’re spreading your business out that you ask questions and make sure those coverages are put together.”

Check into the insurer.

Just as the service you provide your customers is important, so is the quality of service you receive from your insurer.

“You don’t want to assume that company from California has adequate claims staff in Iowa to handle your claims if you have a problem,” says Skow. “Does the company readily have staff available in the state of Iowa?” Skow also encourages checking into the stability of the company. “You either do your own due diligence or you ask your agent, ‘What is the financial stability of this company?’ The rating is one of those indicators.” Skow’s rule of thumb is to look for a company with a rating of a B+ or better. “The higher the rating, the more financially stable the carrier is. It stands to reason that if the carrier is financially stable they’ll be able to take a loss.”

PRO TIP

Know your dealership’s five-year loss history.

“It’s important to know what has happened, how many times (frequency), and the cost of the occurrences to t h e i n s u re r s,” s ay s G i b s o n . “No t understanding the dealership’s claims history leads to confusion with regard to the relationship between claims and premium. Understanding claims is a critical part in the negotiations with insurers.”

Establish a risk management team.

Gibson suggests establishing a group, including the dealer principal, general manager or COO, CFO or controller, facilities or operations manager, and potentially an insurance consultant.

“Together the team can discuss controlling claims trends and coverage areas.”

Set sufficient umbrella limits.

Talk with both your CPA and the attorney who would represent you in court against an injured plaintiff. “A discussion of ‘what can happen’ and ‘how much could a jury award’ is the basis for developing umbrella coverage limits,” Gibson says. “Premium dollars to increase umbrella coverage can easily be found by increasing deductibles in other coverage areas.”

they don’t always consult an objective expert when it comes to purchasing insurance. “Yet most dealers feel compelled to ‘go it alone’ when developing and purchasing the program that will protect their hard-earned assets when a loss occurs,” says Gibson. “Insurance is important. Very important when you need it most.”

Hughes recommends dealerships work with a broker, like LMC. “Industry expertise is a big piece of it, access to a lot of different markets and different solutions for their insurance needs,” Hughes says. “That’s something that the direct writers can’t provide—the ability to work as a consultant instead of just an agent.”

Spend time with your agent or broker.

“The sharing of information is critical,” Skow says. “Most agents really like it when the client can take enough time to sit down with them, walk through what they do.” Skow recommends taking the insurance agent on a walking tour through the business and giving them the opportunity to sit down with someone who understands that operation. “It doesn’t have to be the owner, but a key person, to sit down, take time, and walk through what might be different.”

Types of Policies Does your dealership have adequate coverage?

Must-Have Policies • • • • • • • •

• •

Workers’ Compensation Garage Liability Employment Practice Liability Property Umbrella Liability Errors and Omissions Crime Pollution/ Environmental Liability Personal Umbrella Coverage Inventory/Dealers Open Lot Coverage

Policies to Consider • • •

Cyber/Data Risk Directors and Officers Kidnap and Ransom

Policy Endorsements •

•

Don’t do it yourself.

Dealers use CPAs for their taxes and consult attorneys for legal matters, but •

Social Engineering (can be endorsed onto crime or cyber policies) Third-Party Coverage (can be endorsed onto employment practice liability policies) Off-Premise Business Interruption (can be endorsed onto property policies)

FALL/WINTER 2017 5

SHOW & TELL

food for the soul

A decade of tradition gives a Fort Dodge dealership even more to be thankful for.

Guests fill the showroom at Fort Dodge Ford Lincoln Toyota for the dealership’s annual Thanksgiving dinner.

PHOTO COURTESY OF CASEY JOHNSON

BY ELLEN COLVILLE

Every year on the fourth Thursday in November, families gather around the table for Thanksgiving. The holiday is filled with gratitude and joy, but for some it can be a season of sorrow.

Those who are unable to be with their family or have lost someone close often feel it most around the holidays. Knowing that the holiday can be challenging for some is one of the many reasons why Casey Johnson, owner of Fort Dodge Ford Lincoln Toyota, and his family decided to give back to their community on Thanksgiving Day.

6 IOWA AUTO DEALER

“Ten years ago we were having our Thanksgiving meal together, my wife and I and our two sons, and we said you know, what should we do, new or different, as a community project for the dealership this coming year?” Johnson says.

They decided to host a free, goodwill offering Thanksgiving meal in their dealership’s showroom. They started planning and put an announcement in the paper. Tables, chairs, and linens replaced cars and trucks in the showroom. They prepped place settings of real plates and silverware.

“We didn’t want it to be on folding tables or paper plates,”

SHOW & TELL

Johnson says.

The meal was intended to help people in need or those who are alone on Thanksgiving. Along with the four members of the Johnson family, around half a dozen employees and many volunteers came to help.

“When we pulled up to the dealership that morning, there were about 25 volunteers outside that heard about the program,” Johnson says. “They were friends or customers or even strangers that said, ‘We heard about your Thanksgiving meal and we want to help and volunteer our time,’ so that was really neat.”

Many volunteers use the meal as a rewarding family experience, and plan their own Thanksgiving dinner for later in the day. The set up starts around 9 a.m. and the meal is served from 11:30 a.m. to 1:30 p.m. Every year the number of meals increases, with a record 1,700 served in 2016.

“We don’t ask for any volunteer help and through the kindness of the community, our customers, and friends, the last few years over 100 volunteers have shown up,” Johnson says. The mayor, city council members, business owners—all walks of life come to lend a hand.

Hosting this meal is a way that the dealership can give back to a community that has been so wonderful to them for the past 20 years, Johnson explains.

“You not only have to take care of your customers, you need to take care of your community,” Johnson says.

The Thanksgiving meal allows the dealership and the Johnsons to provide more than just food for the families. For some, the meal is an opportunity for parents and children to reunite.

“What has happened is that DHS has heard about this and they would bring families that were separated,” Johnson says.

Parents come in through one door and children through another, allowing families the opportunity to spend at least part of Thanksgiving together when they wouldn’t otherwise be able.

Other attendees are navigating grief, and the dealership’s Thanksgiving meal ensures they don’t spend the holiday alone.

“They come and just visit and socialize with people they’ve never met before, and the expressions on their face and the laughter is very worthwhile,” Johnson says.

Not everyone in the community is able to make the trip to the showroom, however, so the Johnsons added home delivery of meals during the event’s third year.

While delivering meals to people’s homes, Johnson explains, you get to sit and talk with them. You’re providing them with company on an otherwise lonely day.

“You leave those homes pretty teary-eyed, and then you drive by that house on any given particular day during the year and you remember that person. It’s pretty amazing,” Johnson says.

“You not only have to take care of your customers, you need to take care of your community.”

Casey Johnson

Dozens of slices of pumpkin pie sit, ready to be served.

PHOTO COURTESY OF CASEY JOHNSON

The meal delivery service started Johnson and his wife, Deb, thinking about the Webster County Meals on Wheels program.

They did some research and found it had dwindled down to only 12 meals a day. They decided to resurrect the program and have since increased the meals to 45 per day.

They also partnered with Trinity Hospital in Fort Dodge to help with drug reconciliation. If patrons are on certain medications, they can confirm that they are still on their program when the meals are delivered. Having this service has saved the lives of those who were in dire straits medically at the time of the meal deliveries.

“You knock on a door and no one answers, and we know they’re supposed to be there—you know something’s not right,” Johnson says.

The annual Thanksgiving meal has also opened doors for organizations and businesses in the community, whether that’s through helping with the Meals on Wheels program or using the showroom to hold an event. The Humane Society of North Central Iowa was inspired to hold their annual Fur Ball fundraiser in the dealership’s showroom.

“We don’t even have an event center in the city of Fort Dodge or Webster County that can hold 1,000 people,” Johnson says.

The dealership has held half a dozen events in their showroom that have come about due to the Thanksgiving meal. They have a similar program at their other dealership, Ames Ford Lincoln, which supports the Boys and Girls Club.

“A lot of communities need a big open space for free of charge, because they are nonprofits and don’t have the funds to pay for

SPRING/SUMMER 2017 7

SHOW & TELL

Volunteers serve Thanksgiving dinner to guests.

We Have Buyer Names And Addresses In Your Market Available Monthly for New and Used Car Purchasers

NEW & USED VEHICLE MARKET SHARE REPORTS

Grab Hold of the Knowledge Available Preferred Vendor of the Iowa Automobile Dealers Association

• • • • • • • • •

Buyer Names & Addresses on Each Report No Manufacturer Pre-Set Market Areas No Long Term Commitment Accurate Reporting Timely Information Optional Email Sign-up for Faster Delivery Complete Lien-Holder Information Fleet Totals or No-Fleet Totals Plus Many More Great Features

All for As Low As $30 Per Month!

($.015 per buyer record)

To see a sample market share report or for more info, contact Scott Quimby at 877.335.2525 or scott@reg-trak.com.

8 IOWA AUTO DEALER

PHOTO COURTESY OF CASEY JOHNSON

hall rentals,” Johnson says.

The dealership also partners with the Iowa Central Community College culinary arts program to help prepare and cook the meal. In return for helping, the students receive an allexpense-paid summer trip to Chicago from the dealership for a special culinary arts school.

“You know you can sit around and have your own Thanksgiving meal and watch football all day long, but at the end of the day it’s not very fulfilling,” Johnson says.

The annual Thanksgiving meal has been a true joy for the Johnson family and the community of Fort Dodge.

“What has evolved from ten years ago as an idea, has just been an explosion of joy, happiness, and a lot of pride for our dealership,” Johnson says. “We just finished our tenth year, and we have no plans of stopping.”

“You know you can sit around and have your own Thanksgiving meal and watch football all day long, but at the end of the day it’s not very fulfilling.”

Casey Johnson

Check any you’d risk a life for.

Cause of Death Speeding Distracted Driving Driving Tired Road Rage

e it Please mak day. home safe to Federated Mutual Insurance Company Federated Service Insurance Company* • Federated Life Insurance Company Owatonna, Minnesota 55060 | Phone 507.455.5200 | www.federatedinsurance.com 17.06 Ed. 9/16 *Not licensed in the states of NH, NJ, and VT. © 2017 Federated Mutual Insurance Company

IADA PRINTING & PROMOTIONS

in stitches

Dress up your workwear with custom embellishments.

Ironing out the details of a custom apparel order can be difficult, but the payoff of having your brand emblazoned on your employees’—or customers’— clothing makes the effort worthwhile.

Karen Sargent of George White Chevrolet in Ames has been ordering apparel from IADA Printing & Promotions for more than 10 years, placing orders for polos, dress shirts, coats, and jackets two to three times each year.

Sargent keeps a spreadsheet of the orders to make the process easier. “We keep the color options and style options to a minimum and give the employees a short window of opportunity to get their orders in,” she says.

If you have the time, start planning your apparel program a couple months before you would like the finished product, advises IADA Printing & Promotions

Assistant Manager Jessi White. She adds that knowing your budget and having a general idea of what you’re looking for before you begin can be helpful, but looking through catalogs and speaking with a sales specialist can help narrow your options.

Custom apparel comes at a variety of price points and with many options for placement and materials. Logos can be added to clothing via embroidery, screenprinting, heat transfer, laser etching, appliqué, 3-D emblems, and custom zipper pulls (see page 12).

And potential placements on clothing range from shirt sleeves to pockets and everywhere in between.

“The more options you offer your employees the more complicated the order process gets,” says Briann German, an IADA Printing & Promotions Sales

Specialist. “We often recommend selecting a couple of shirts from the same vendor to ensure your order is simple and easy for you.”

Engaging with a sales specialist is especially helpful for getting the best pricing possible. Pricing is determined by a combination of the cost of the garment, decoration method and options (including logo size, stitch count, and placement), and quantity purchased.

“We can tailor to the customer’s need for quantity and find a price break that works for our customers,” says German.

White stresses the importance of reaching out. “The biggest thing is to have them call in and speak to us,” she says. “I’m here to guide them and help narrow things down because it can be so overwhelming.”

Consider the Possibilities

From hats to jackets and blankets to bags, your logo can go on just about anything. Polos, jackets, and hats are among the most popular dealership apparel items, according to IADA Printing & Promotions.

Outerwear

A branded jacket can keep lot attendants and salespeople comfortable—and easily identifiable—while out in the elements.

Available styles include lightweight windbreakers, fleece, and puffy vests.

10 IOWA AUTO DEALER

Hats

Styles range from beanies to flat brims and can be as inexpensive as a few dollars per cap. A popular giveaway item, hats help raise brand awareness.

Shirts

Polos are the most popular branded shirts for dealerships. “People wear them yearround and they are pretty standard inside a business office,” says German. Looking to branch out? Sweaters, t-shirts, and button-downs are other options.

IADA PRINTING & PROMOTIONS

Streamline Your Apparel Order

1.

Look through catalogs.

IADA Printing & Promotions will send out catalogs for the dealership to review.

“They should look at setting up a program by picking out a few options for men’s and ladies’ polos, jackets, or whatever fits their needs,” advises White, noting that orders become more complicated and customers miss out on price breaks when too many choices are offered.

2.

Request samples.

Sometimes the best way to make decisions about a piece of clothing is to actually see it. Samples can often be ordered at no charge, provided they are returned to the manufacturer within 30 days.

3.

4.

Check sizing.

Once you’ve decided on the different clothing items you’d like to order, samples can be delivered for sizing to help employees determine which size fits best.

Put your order information into a spreadsheet.

“The best way for a dealership to make the ordering process go smoothly is to give us the order in Excel in the breakdown of item number, quantity, color, size, logo, and placement of logo,” says White.

IADA Printing & Promotions has a tried-and-true ordering template that simplifies the spreadsheet for the dealership.

FALL/WINTER 2017 11

IADA PRINTING & PROMOTIONS

Pick Your Polish

A variety of finishes take custom apparel to the next level.

1. appliqué

4. heat transfer

2. embroidery

5. 3-D emblems

Appliqué can be heat applied or embroidered and is ideal for adding detailed logos or images to apparel.

Suitable for most fabrics, embroidery can be scaled to fit on shirt chests, sleeves, pockets, and more.

Heat transfer has the precision to print small text and create more of a retail look on apparel.

Highly detailed dimensional designs add flexible texture to pullovers and outerwear.

3. zipper pulls

Small details, like branding the zipper pull on a jacket, gives outerwear a more upscale feel.

3.

12 IOWA AUTO DEALER

1.

4.

2.

5.

IS YOUR DMS

Holding YOU BACK? As the automotive market evolves, your DMS needs to evolve with it.

Dealertrack DMS positions you for success today while also helping you adapt to what lies ahead. Opentrack – our industry-leading, third-party integration platform – allows you to choose the partners that are best for your business now, and in the future. Plus, our easy-to-use system drives efficiencies and enables everyone at your dealership to be more productive.

Get the technology – and confidence – to thrive in any industry climate.

Call 888.318.1658 or visit DMSDealertrack.com/evolve to learn more.

IOWA AUTOMOBILE DEALERS FOUNDATION FOR EDUCATION

funding for the future

Grants bolster community college automotive programs.

Hawkeye Community College students get hands-on experience using equipment purchased with a grant from the Iowa Automobile Dealers Foundation for Education.

PHOTO COURTESY OF HAWKEYE COMMUNITY COLLEGE

The automotive instructors had a message.

Sitting in a conference room with dealers from around the state of Iowa, the instructors made an impassioned plea on behalf of their students to the businesses that will one day hire them.

That message: Community college programs need equipment in order to provide a quality education for future dealership employees, but the money to purchase that equipment is in short supply.

The dealers, members of the Iowa Automobile Dealers Foundation for Education board of directors, listened. And then they decided to do something about the problem that has long plagued automotive education.

The community college grant program was born.

"For the last few years, the automotive instructors have told us of their need to have updated equipment to train the students so

14 IOWA AUTO DEALER

they will be prepared when they begin working at a dealership.

We thought the best way the foundation could help them was to create the grant program," says Mary Cason, executive vice president of the foundation.

Every automotive program in the state of Iowa sent in at least one grant application, with requests for funds ranging from $2,000 to $40,000.

“It was a difficult decision to narrow the winners to four recipients,” says Cason. The schools ultimately selected presented a compelling need that resonated with the board.

"There's still so much need out there. The board thought that supporting these programs would make a large impact on the students, the communities, and the industry."

The largest of the four grants went to Indian Hills Community College in Ottumwa. The college had recently surveyed local

IOWA AUTOMOBILE DEALERS FOUNDATION FOR EDUCATION

d e a l e r s h i p s a b o u t t h e i r “These grants can improve the industry, as the g ra d u a t e s ' p e r f o r m a n c e and responses showed that students graduating will need less employer training.” one area the program could Constance Grimm improve was students' education on diagnostic Southeastern purchased a Snap-on tool set with inventory equipment and processes. control for the students in the high school automotive In the grant application, instructor Andy Summers explained preparedness program to use. The program, which allows that the program was using four scan tools from different students to earn both high school and college credits at the same manufacturers. “We struggle to have a cohesive learning time, began accepting students for the fall 2017 semester. environment in our shop during engine performance classes Hawkeye Community College in Waterloo improved students' and in open lab,” Summers wrote. As a result, instructors spent access to new technology with the $6,000 in grant money it extended time with each student explaining the differences in received. The school purchased a Robinair Air Conditioning scan tool operating systems.

Recovery Recharge Machine, which allows students to be taught The foundation gave Indian Hills $12,000 to purchase six with the newest technology in air conditioning refrigerants.

Snap-on Ethos scan tools with a tool cart. Students will also be "The ability to train students on the newest technology will able to achieve an Ethos certification from Snap-on while in their allow the students to be industry-ready for the workforce when engine performance and testing classes, making graduates more they leave Hawkeye Community College," says Constance knowledgeable in additional aspects of automotive repair.

Grimm, Associate Director of Grants & Resource Development Iowa Lakes Community College in Emmetsburg plans to at Hawkeye Community College. "The new machine also allows tackle recruiting challenges with a modern approach thanks to for us to be more environmentally friendly in our containment the $2,000 grant it received from the foundation. The college of refrigerants." purchased two GoPro cameras and equipment, which will be Positive feedback about the program from Iowa's community used to develop and support an online and social media presence colleges led the foundation's board of directors to approve for the automotive programs as well as incorporate video offering the program for a second year when they met in October. into classes.

Applications will be available in early 2018 for colleges that “Our focus in using these funds will be mainly to increase the continue to seek outside funding to bolster their educational visual learning aids available for use in the classroom, as well as opportunities for students. recruiting efforts,” says Jason Jacobson, Assistant Professor for “Cost of equipment used for instruction is always going up the Automotive Technician program at Iowa Lakes. and, many times, educational resources are dwindling. Grants By making these videos easily available to middle and high are a tool that we can use to help stay on the cutting edge and schoolers, parents, and counselors, the college hopes to see an to provide a higher quality education for our students,” says increase in program enrollment and overall industry interest.

Hawkeye's Grimm. “This grant allows colleges to expand their High school students in southeastern Iowa are benefiting instructional reach with ever-dwindling educational funds. from the grants, as well. Southeastern Community College used These grants can improve the industry, as the students graduating the $10,000 it received from the foundation to help launch a will need less employer training.” program for high school students at its Keokuk campus.

And that's a message that the foundation has taken to heart.

“This new program had been a dream, but lack of funding “The foundation board is pleased to be able to provide the had not brought it to fruition until now,” says Becky Rump, funding to enable the instructors to make purchases on needed Executive Director of Institutional Advancement at Southeastern equipment and enhance the student’s learning experience,” Community College.

Cason says.

2017 Grant Recipients Hawkeye Community College

Iowa Lakes Community College

Indian Hills Community College

Southeastern Community College

Waterloo Grant: $6,000 Purchase: Robinair Air Conditioning Recovery Recharge Machine Ottumwa Grant: $12,000 Purchase: Snap-on Ethos scan tools and tool cart

Emmetsburg Grant: $2,000 Purchase: GoPro cameras and equipment

Keokuk Grant: $10,000 Purchase: Snap-on tool sets with inventory control

FALL/WINTER 2017 15

FIVE THINGS

16 IOWA AUTO DEALER

FIVE THINGS

five things from kim reynolds

What Iowa's governor wants automobile dealers to know.

1.

2.

Help us build a better Iowa! My vision for our great state makes it more competitive, brings quality jobs to our families, develops the most innovative energy policy in the U.S., educates our children for the knowledge economy, and trains Iowans for the jobs of tomorrow. However, I can’t achieve this vision alone.

It requires your active commitment and enthusiasm at the local level, too. Each day, think about ways you and your employees can help make a difference.

Consider being involved with STEM. STEM stands for Science, Technology, Engineering, and Math. Greatness stems from Iowans like you! Getting our children involved in STEM is vital for their futures. STEM builds confidence in our young people. It also provides high-paying jobs and quality careers.

Please consider being a STEM business partner with your local schools or serving on the Governor’s STEM Advisory Council.

Governor Kim Reynolds and Lieutenant Governor Adam Gregg tour Edwards Chevrolet Cadillac in Council Bluffs to learn more about the automotive retail industry.

Right: Dealer Dave Edwards shows a Chevrolet Volt to Reynolds.

PHOTOS BY STEVE KOWALSKI

FALL/WINTER 2017 17

FIVE THINGS

Governor Kim Reynolds looks under the hood of a vehicle in for service at Edwards Chevrolet Cadillac.

PHOTO BY STEVE KOWALSKI

3.

4.

5.

Join the Future Ready Iowa (FRI) initiative. FRI connects Iowa’s efforts in education, workforce training, and economic development. We’re building Iowa’s talent pipeline.

Our goal is that by 2025, 70% of our workforce will have an education or training beyond high school. To learn more, visit futurereadyiowa.gov.

Apply for boards and commissions. There are over 180 boards and commissions in Iowa that advise me, the lieutenant governor, the legislature, and state agencies. We’re always looking to expand the leadership quality and professional experience of boards and commissions. It’s easy to apply for a position. Just go to governor.iowa.gov and click on “Constituent Services.”

Celebrate your economic impact. Guess what? You’re part of the 264,384 small businesses driving our state’s economy. In fact, new-car dealerships employ 12,000 people and generate 16% of total retail sales in Iowa. I’m deeply appreciative of the positive impact that you’re having throughout our state. Keep up the great work!

Governor Kim Reynolds became Iowa's first female governor in May 2017 after serving as Iowa's lieutenant governor from 2011–2017. Reynolds previously served as a state senator and as a county treasurer.

18 IOWA AUTO DEALER

Help your (future) employees grow.

Spread the word about $2,000 scholarships available for the 2018–2019 academic year.

Applications will be available at IADA.com on December 1, 2017.

Q&A

device divide

Three experts offer tips on using personal phones in the workplace.

Q:

My salespeople are using their personal phones for business.

What are best practices for employee mobile phone policies?

BRADLEY MILLER National Automobile Dealers Association

A:

This practice creates risks because it is difficult to ensure compliance with the processes and recordkeeping required under federal telemarketing law. Here are a few examples: 1. Federal Do Not Call (DNC) Requirements. You must routinely check the federal DNC list and ensure that you do not call any number on the list. Are your employees checking against the list before calling? How do you enforce that on personal phones?

2. Company-specific do not call list. Dealers are also required to maintain a list of anyone who has asked your dealership not to call them again. Do you keep such a list? (If not, start now!) How do you ensure that your employees are not calling someone on that list? If a call recipient asks you not to call them again, does your employee ensure that request is honored?

3. Telephone Consumer Protection Act (TCPA). For certain types of calls, you must obtain consent (in some cases, written consent) before making a call or sending a text. (The FCC has held that text messages are “calls” and that means that the same TCPA consent requirements apply to text messages as calls. Obtaining and proving such consent can get very complicated on personal phones.) This federal statute has been interpreted very broadly, which (along with penalties of up to $1,500/call or text) has led to an explosion in TCPA class action lawsuits. Do your employees have the proper consent before making calls or sending texts on their personal phones? Do you have records to prove it?

Remember, you will likely be held responsible for calls made on behalf of your dealership. The details of these rules can be complicated, and dealers should work with their attorneys to adopt a policy that ensures regulatory compliance with federal and state law and protects this sensitive and valuable information.

BRADLEY MILLER Director, Legal and Regulatory Affairs | National Automobile Dealers Association nada.org

Have a suggestion for our next Q&A?

Submit your questions to bbungert@iada.com.

20 IOWA AUTO DEALER

A:

CONNIE VOORHEES Bearence Management Group

Q&A

BYOD (Bring Your Own Device) describes the situation where employees use their own device to do their jobs and use the organization’s data or information systems in the process.

To establish a formal BYOD policy, you need to: • Decide who is allowed to work in this manner and on what types of devices.

If hourly employees are permitted to work outside their normal work shift on their device, they likely need to be paid for this work time. BYOD can make maintaining a healthy separation of work and personal time more difficult.

• Establish data security measures to protect valuable, confidential company and customer data from loss, theft, or sabotage. Require employees to use passwords/PINs and anti-virus software on mobile devices. Require periodic syncing of data from devices to the company network. Consider restrictions on apps and services that can be on the device. Get data security advice from a technology expert.

• Establish expectations of use for the employee; set expectations that the device will be monitored. Be clear about inappropriate use (i.e. Internet sites/use, downloading, file-sharing, etc.) so that employees know what is prohibited.

• Determine who pays for data/phone charges.

• Account for and safeguard employee privacy. Ensure non-work data is protected.

• Establish how you will capture data held on the employee’s personal device should they leave the company.

• Develop procedures to follow when a device is lost or stolen.

• Enforce the BYOD policy and review the policy annually.

BYOD is here. It can improve employee efficiency and satisfaction as well as offer cost-savings to the employer. A BYOD policy helps ensure employees are clear about user expectations and helps the company protect its valuable client and corporate data.

CONNIE VOORHEES Human Resources Consultant | Bearence Management Group | bearence.com

100%

Dealer Owned and Managed

• Credit Insurance

Providing our dealerships’ customers with valuable protection since 1976

• Vehicle Service Contracts

Available with re-insured, self-insured, or retro participation structures

• GAP Coverage

One low cost for all terms up to 84 months

• Ancillary Products

Pre-paid maintenance, 3-in-1, tire and wheel, and paint/fabric protection

• Training

Online, in store, and classroom training available

Iowa’s Only IADA-Endorsed F&I Provider

Hawkeye Financial Services, Inc. hawkeyelife.com • 515.226.8440

FALL/WINTER 2017 21

Q&A

A:

The TCPA restricts telephone solicitations and the use of automatic telephone dialing systems (ATDS) to call/text telephone numbers.

In a 2015 declaratory ruling, the FCC provided a broad definition of ATDS that could “potentially sweep in smartphones”—this means your employees’ use of a personal cell phone to call customers triggers the provisions of the TCPA. If employees are using personal cell phones to call consumers on their employer’s behalf, they must obtain consent from the person to be called.

Consent must be obtained through a written agreement including the consumer’s signature and that documentation should be retained for 5 years. Electronic signatures are sufficient. The consent must specifically indicate the sellers to whom consent is provided and the agreement must include the cellular telephone number(s) to which the consumer consents to receive calls. The consumer must take some affirmative action to indicate their assent. That agreement must clearly/conspicuously disclose: • The person is authorizing the seller to make telemarketing calls; • The calls will be made using an ATDS (or pre-recorded message) and; • The person is not required to provide consent as a condition of purchasing any goods/services.

A typical disclosure may read: “By signing this form you authorize [company] to contact you at [number provided] using an automated dialing system for telemarketing purposes. Your consent is not required as a condition of purchase.”

If you’re reimbursing your employees’ cell phone usage, implement auditable compliance procedures so you know exactly what calls you’re compensating. Also important are disciplinary policies for when employees fail to comply.

Require employees to use encryption and back-up data. Their phones have your customers’ information and it needs to be kept safe!

MICHELE SHUSTER Partner | Mac Murray & Shuster LLP | mslawgroup.com

22 IOWA AUTO DEALER

MICHELE SHUSTER Mac Murray & Shuster LLP

BY THE NUMBERS

by the numbers

Surprising statistics about Iowa and automobiles.

With

Vehicles traveled an estimated

114,486 miles of roadway, Iowa ranks 14th in the nation for public roads.

33.13 billion

miles on Iowa’s roads in 2015.

The average vehicle in Iowa in 2016 was People age 55-64 were the largest

12.6 years old.

13,194

Iowans worked at new-car dealerships and

More than

3.6 million

motor vehicles were registered in Iowa in 2016.

0.8%

of new vehicles in the United States are registered in Iowa.

2,861

worked at new-truck dealerships in 2016.

group of licensed drivers in Iowa as of 2013.

The first “No Passing Zone” sign was created by the Iowa State Highway Commission in 1958 and was later adopted around the country.

The estimated annual revenue

Iowa’s seat belt use rate for 2016

from vehicle registrations was

93.8%

$562,783,838.

Sources: Iowa Department of Transportation, National Automobile Dealers Association FALL/WINTER 2017 23

ABOVE AND BEYOND

Above And Beyond From baked goods to bicycles, these dealerships offer a little something extra for their customers.

24 IOWA AUTO DEALER

ABOVE AND BEYOND

When Greg Shottenkirk called Martha Wolf in 2001 and asked for a meeting, she thought he wanted her restaurant, the Ivy Bake Shoppe in Fort Madison, to host a dinner party.

Then the Shottenkirk Automotive Group owner showed up with blue prints.

“He came in with blue prints and I got nervous,” Wolf says.

The blue prints were for a new dealership in West Burlington, and there, written on the building plan was the single word that necessitated Wolf’s involvement: Bakery.

“He had seen it someplace and said to himself ‘why not?’”

Wolf says.

Including a restaurant in a dealership was a novel concept in Iowa that hasn’t been repeated. But as dealerships look for innovative ways to attract customers, more and more are thinking outside the box and adding features to enhance the customer experience and improve their communities.

The West Burlington Ivy Bake Shoppe & Cafe combines the whimsy of a bakery with a sleek, modern dealership.

PHOTOS COURTESY OF MARTHA WOLF

Food for Thought The new Shottenkirk dealership, complete with the West Burlington Ivy Bake Shoppe & Cafe, opened in 2002.

The first three years were a struggle for the restaurant. “[Greg Shottenkirk] said to his salesmen ‘You may not go in the Ivy and talk to customers about buying a car.’ Unfortunately, customers didn’t believe that,” Wolf says. “For the first three years, it was a struggle.”

More than once, Wolf wondered if a bakery in a dealership could work.

FALL/WINTER 2017 25

ABOVE AND BEYOND

“The best thing about having the Ivy is that when somebody says, ‘I want to have lunch and think about it,’ we always send them to the Ivy and pick up the tab. Twenty dollars well spent to get a car deal.”

Troy Patterson “Those first few years, I had a couple people who were older people that I kind of looked up to in terms of business sense, and they were like, ‘What were you thinking?’” Wolf says. “Those first few years, I was like ‘What were you thinking?’ But it has worked out.”

The restaurant has its own front door, as well as access through the dealership. And eventually, customers realized that not only were salesmen not going to bother you in the restaurant, but the food was worth the visit.

“Our customers enjoy that they can grab breakfast, a muffin, or lunch while they are waiting for their car in service,” says Troy Patterson, general manager of Shottenkirk West Burlington. Patterson, who eats at the Ivy two or three times a week, recommends the bagel BLT and three cheese macaroni and cheese.

The Ivy makes going to the dealership a fun excursion.

“There’s a couple in Ottumwa that always come over to have their oil changed at Shottenkirk because they want to come to the Ivy,” Wolf says. And people who might otherwise grumble about having to take their car in to get the oil changed use it as an excuse to sit in the Ivy, have a scone, and read a book.

“It’s a nice amenity for a car dealership,” Wolf says. “We do a sweet tray every day that we set out in the service quick lane area and we have coffee that we keep hot for them out in their waiting area.”

The restaurant has sold a few cars, as well.

“We have sold about five cars from people coming to the Ivy to eat, going out to use the restroom, seeing a car they like, and buying it,” Wolf says.

And the restaurant allows customers to go think about a deal

26 IOWA AUTO DEALER

without having to leave the premises.

“The best thing about having the Ivy is that when somebody says, ‘I want to go have lunch and think about it,’ we always send them to the Ivy and pick up the tab. Twenty dollars well spent to get a car deal,” Patterson says.

Fifteen years in, Wolf considers the Ivy to be a win-win for her business and the dealership. She tries to create a positive experience for both restaurant guests and dealership customers.

“Even now, during nice weather, if I’m there during an odd time and people are sitting outside and look like they’ve been there forever, I’ll bring them a treat,” Wolf says. “I want people to like Shottenkirks. I want them to have a good experience tied to Shottenkirk.”

In a testament to the success of the West Burlington Ivy, Wolf opened a second cafe in downtown Burlington more than two years ago and didn’t lose a single customer at the dealership location. “I keep saying, ‘It’s a dealership. Why aren’t you coming to this beautiful store?’ but it’s home,” Wolf says. The customers who once were hesitant to embrace eating in a dealership have come to be fiercely loyal to their favorite cafe.

Fido-Friendly Facilities Dave Wright Nissan Subaru in Hiawatha installed dog watering stations in both showrooms when the dealership built its new facility in 2015. The watering stations are built into the wall and fresh water is delivered via pipe.

“The customers love it and they love that we allow pets at the store,” says dealer Dave Wright. “Both reception desks have dog treats available, [so] a lot of owners know that and ask for a treat to give their pets.”

ABOVE AND BEYOND

Community Art Josh Dreyer, marketing director at Willis Auto Campus in Clive, was looking for something that would help the community and fill the empty walls of the dealership.

“I have a friend who is a local art advisor, and she and I put together a quarterly program that will feature a different program each time,” Dreyer says. Each quarter, art from a different organization is showcased throughout the dealership.

“The art is displayed in every service advisor and sales/finance manager’s office, as well as the entryway to our Lexus service drive,” says Dreyer.

The first organization to have its art deck the halls of the dealership was Art Force Iowa, a program creating a supportive artistic environment for at-risk youth. The second program featured was ASAP, the After School Arts Program, which provides arts programs for first through eighth graders attending Des Moines Public Schools. Future featured programs will include high school arts programs and a group from Drake University.

“Each organization is given a $250 ‘rental’ fee to help support their programs and allowing us to display their recent work,” Dreyer says.

A New Kind of Loaner A hotel stay on a snow day inspired Ramsey Auto Center Service Manager Dave Davis to purchase bicycles for the dealership’s service customers.

While staying at the hotel near a bike trail, Davis noticed some bicycles that were available for guest use and asked employees about them. “They said that people really like them but very

few people ever ride them,” Davis says.

Because of Ramsey Auto Center’s location near the bike trail and the lifestyle of the Urbandale dealership’s customers, Davis decided to follow the hotel’s lead and purchased two Trek bicycles for service customers to use.

“I have them there for people to use.

We have a simple form for them to fill out and we don’t charge,” Davis says. “It’s just a loaner vehicle for them. Especially since we’re right off the bike trail, it seemed like a smart thing to do.”

The bicycles are used at least every two to three days, Davis says. “They do get used quite a bit, but it’s more the idea that they’re here.” He adds that positive feedback about the bicycles comes from customers who use them—and customers who don’t. “They think it’s a neat idea.”

The bicycles are a convenient amenity for the dealership’s regular customers.

“Customers have quit bringing bikes because they knew we had them,” Davis says. One customer, in particular, brings his vehicle in every three months or so, grabs a bike, and bikes from the dealership into downtown Des Moines for work.

Davis hasn’t done much to promote the availability of the bicycles, other than a sign in the dealership, a note on the website, and a mention in Valpak advertising. “It’s not something I really push, it’s more like an add-on bonus thing,” he says.

Putting the Extra in “Extraordinary” While these little touches may seem superfluous to some, to others, they make the dealership stand out. Those little extras, the bonus amenities, are adding up to create an extraordinary experience for customers at dealerships across the state.

Right: The Willis Auto Campus Community Art Program features artwork Des Moines Public Schools students created as part of ASAP, the After School Arts Program.

PHOTOS COURTESY OF WILLIS AUTO CAMPUS

Far Left: Two Trek bicycles are available for Ramsey Auto Center service customers to use as a loaner vehicle.

PHOTO COURTESY OF DAVE DAVIS

Left: Water is piped into the built-in dog watering stations in Dave Wright Nissan Subaru.

PHOTO COURTESY OF DAVE WRIGHT

FALL/WINTER 2017 27

HITTING REFRESH

hitting refresh Dealerships face a dilemma: Embrace turnover or motivate employees to stay.

28 IOWA AUTO DEALER

HITTING REFRESH

It’s no secret that turnover in the automotive retail industry is high. It’s an issue dealerships encounter every day as they work to ensure their businesses are staffed with high quality employees who can provide an exemplary customer experience.

But when more than 40% of employees are leaving each year, dealerships have more work to do.

“Turnover jeopardizes customer experience, is expensive, and impacts the consumer brand in addition to your employment brand,” says Candice Crane of Hireology, a company that works with businesses to improve their hiring processes and attract better candidates.

The downsides of employee turnover are obvious. But what can dealerships do about it?

Causes and Costs There are two types of turnover: voluntary and involuntary. Reasons for voluntary turnover, or when someone leaves a job for reasons outside of the company’s control, can include moving or going back to school. Involuntary turnover is when someone is fired, asked to resign, or their position is eliminated due to restructuring.

“The causes of turnover can sometimes be a multitude of things. But the main reasons for involuntary turnover are because, one, the new hire does not fit the job they were hired for. Two, they don’t fit the company’s culture. Three, they don’t see a path for advancement.

Four, they don’t like their boss,” says Thomas Hamilton, a frequent presenter on employee turnover reduction strategies and the founder of Selection Resources, a company that provides employee selection tools.

A lack of engagement, lack of feedback, and the inability to find meaning in their work also contribute to turnover, according to University of Iowa Professor of Management and Organizations Michele Williams. For some, Williams says, the bigger picture of what a job contributes to society can make it more attractive.

“How can you connect the job to a larger purpose?” Williams says. For

“When an organization has a culture of ‘average’ performance, turnover and change of culture can be a good thing.”

Thomas Hamilton example, car dealerships aren’t just about selling vehicles—they are about providing reliable transportation for families. If employees don’t see how their work is making a difference, they may not be as motivated to come to work.

Beyond the hassle of having to find a new hire, employee turnover is expensive.

“Turnover is very costly in terms of dollars, productivity loss, and time,” says Hamilton. “But the real cost depends on the level of the position and what the individual’s salary is, how much time

it took to hire and train them, and how much process or customer disruption is caused due to their departure.” So the cost to replace a lot attendant won’t be as high as the cost to replace an F&I manager, although a difficult-to-calculate hit to employee morale can often accompany high turnover rates.

Finding the Silver Lining While there are obvious downsides to losing good employees, it isn’t all bad news.

NADA Dealership Workforce Study Each year the National Automobile Dealers Association takes the pulse of dealership employment nationwide during the annual Dealership Workforce Study.

In exchange for participating in the study, dealerships receive custom reports showing how their retention rates, benefits, and salaries compare to other dealerships regionally and nationally.

The 2017 study had eye-opening results on retention and turnover.

 42% 74% 65% 35%45% 11% 9%

Overall dealership employee turnover was nationwide and

43%

in the region including Iowa.

Sales consultant turnover was

nationwide and

in the region including Iowa.

of sales consultants reach a tenure of three years,

while

of all dealership employees hit that mark.

Parts manager turnover is the lowest of any key position at nationwide and

in the region including Iowa.

Learn more at nada.org/workforcestudy/.

FALL/WINTER 2017 29

HITTING REFRESH

“When an organization has a culture of ‘average’ performance, turnover and change of culture can be a good thing,” Hamilton says.

And when an employee comes from another business, their past experience or the questions they ask when learning their new employer’s processes can jump start improvements.

“The benefit is bringing in new ideas. So the cost to one company is a benefit to another company,” says Williams. “Even if the idea that comes from another dealership isn’t the best idea for your dealership, you’ve started that conversation. So you have more of

a discussion about ‘is this really the best way to do things?’ and why, and you give people more understanding about the process and why you’re doing something in a particular way.”

So is there an ideal turnover rate dealerships should aim for? It varies from industry to industry, and from position to position.

“Part of what’s important in the rate is how long it takes to train that type of individual in the types of jobs that are turning over,” says Williams. “The shorter the training period, the higher the turnover rate can be without causing detrimental effects.”

“The shorter the training period, the higher the turnover rate can be without causing detrimental effects.”

Michele Williams 30 IOWA AUTO DEALER

And Hamilton notes that it is common for retail industries to experience a higher turnover. “Many times these jobs are considered starter positions, so people move through them often,” he says.

“Other businesses have very low rates because they make significant effort in terms of time and development of their human capital. These companies are usually rewarded with higher customer satisfaction ratings and higher profits.”

Tackling Turnover There are multiple theories on how to handle turnover. One approach treats employees as ambassadors. “You train them well, give them developmental opportunities, and realize they’re going to turn over really quickly,” Williams says.

“When they move on you want them to talk about your organization as a great place to work. You hope you gain more

HITTING REFRESH

employees from employees who have left being ambassadors for your company.”

Another approach is to make the job so rewarding for employees they want to stay at the company.

How to make the job rewarding can differ from employee to employee, but there are common denominators that make a business a place where someone wants to work. Benefits. Pay. Environment.

“The most common mistake organizations make is not seeing the relational side of jobs—not realizing that sometimes, it’s the small things that matter to people,” says Williams.

Brief interactions, like having a quick discussion about a sporting event, can make a big difference in an employee's overall happiness.

“It doesn’t take a lot of time, but it takes almost that emotional space to say that we value this, along with the work,” Williams says. “We value the relational work we put in to make this a good environment to work in.”

Beyond creating a positive work environment, there are concrete steps businesses can take to reduce

“The most common mistake organizations make is not seeing the relational side of jobs— not realizing that sometimes, it's the small things that matter to people.”

Michele Williams employee turnover. And it starts with the hiring process. ““If you don’t hire the right person, you’re doomed to fail,” says Hireology’s Crane. To help dealerships achieve that goal, Hireology touts its services as a “DMS for talent management,” combining managing a career website, job postings, and applicants into a single platform designed for hiring managers.

In addition to creating a consistent and effective hiring process, Hamilton advocates for adopting best practices designed to help businesses reduce turnover.

• B e p ro a c t i ve i n re c r u i t i n g and branding.

• Use technology to improve your chances of hiring the best candidate for the job. Many

“If you don’t hire the right person, you’re doomed to fail.”

Candice Crane

businesses use assessments to help screen candidates to determine which are the best long-term fit for the company.

• Ramp up your onboarding and be prepared to give new employees the tools to succeed and grow professionally.

• Focus on employee development.

Providing training and continuing education opportunities to workers shows that your dealership values them and is committed to helping them grow.

• Plan for succession and look to grow internal candidates into leadership roles, which leads to increased productivity and longterm success.

“Being thorough and creating a consistent hiring process that leverages technology and best practices techniques it worth the effort,” Hamilton says. “In the end it can pay for itself, saving a dealership tens if not hundreds of thousands of dollars a year.”

Put It Online “The people who land on the website and spend time clicking through the career site have a higher chance of being hired," Crane says. "If you don’t have that opportunity, you’re missing out on quality candidates.”

A career website should have more than just job openings. It needs to show why your dealership is a good place to work and tell stories of employees who have had successful careers. These elements will help attract new candidates and will have the added benefit of reinforcing to current employees that working at your dealership is a career, not a job.

“Technicians are in a huge shortage nationwide,” Crane says. “I think we’re at the beginning of this problem.” Baby Boomers, who delayed retirement because of the recession, are retiring in larger numbers and there aren’t enough Millennials and Gen Xers in the industry to fill the gaps.

“There is a serious deficiency in the number of qualified applicants,” she adds. “What we counsel our clients on is you need to have a defined career path.” Both prospective and current employees want to see how someone can be hired to work as a lube tech and then move into the main shop.

“What investments are you making in that employee to move them from Point A to Point B?” Crane asks.

Tell those stories on your career website and demonstrate your commitment to developing your human capital.

FALL/WINTER 2017 31

THE CLOSE

take note

Dealership trainers share their top sales tips.

FACT: The modern buyer is…

• • • • • •

Digitally driven Mobile Socially connected Empowered Looking for salespeople with a purpose beyond profit Aching for a unique experience they can brag about to their friends!

Social selling offers you admittance into the buyer’s process. You are unlike anyone else on earth. You bring a very specific value to the table that none of your co-workers or competitors have.

KATHI KRUSE Kruse Control Inc. | krusecontrolinc.com

A great buying experience makes price less relevant. In fact, the more you differentiate yourself from the competition, the less price-sensitive customers are, while the less you differentiate, the more price-sensitive they are. Work to create a faster, more accommodating, engaging, enthusiastic, and memorable experience for a customer. Go for the “WOW”s and price becomes the easy part.

DAVE ANDERSON Learn to Lead | learntolead.com

One of the key things I stress when training our clients is developing great “active listening” skills. Too often, when a woman visits a dealership she is interrupted, talked over, or simply not being heard. Use these five steps to improve your “active listening skills” with women—in fact, with all customers: 1. Pay attention. Give the speaker your undivided attention 2. Show that you’re listening. Use attentive body language and gestures like holding eye contact and nodding to demonstrate she has your full attention.

3. Provide feedback. Acknowledge you heard and understand the message by summarizing what you heard back to her.

4. Refrain from interrupting. If she makes statements that you disagree with or you feel are incorrect, wait your turn to speak until she has finished her thoughts.

5. Thank her and ask clarifying questions rather than correct her or make defensive statements. Strive to understand rather than be understood.

JODY DEVERE AskPatty.com Inc. | askpatty.com/getcertified

32 IOWA AUTO DEALER

It’s never good when the ‘CHECK ENGINE’ light comes on.

Let Foster Group conduct a financial diagnosis on your financial future before the warning light appears.

The Iowa Automobile Dealers Association has selected us to manage and monitor their portfolio for more than 15 years. Just like someone working on their own car, it’s our fiduciary responsibility to act in your best interest. As an independent, fee-only firm with an integrated approach to financial planning and investment management, we have the tools and experience to help you on your financial journey.

Call us today to set up a complimentary, no-obligation financial second opinion, because no one wants to drive down the financial planning road alone.

515-226-9000 or Fostergrp.com/IADA 6601 Westown Parkway, Suite 100 | West Des Moines, IA 50266 PLEASE NOTE LIMITATIONS: Please see Important Advertising Disclosure Information and the limitations of any ranking/recognitions, at www.fostergrp.com/disclosures. A copy of our current written disclosure statement as set forth on Part 2A of Form ADV is available at www.adviserinfo.sec.gov.

Exclusive Audience.

More Sales.

Enjoy special access to America’s most trusted brands through our network of over 650 affinity partners. Gaining an instantly wider audience enables you to close more sales in a cost-effective way. There’s never been a better time to join the TrueCar Certified Dealer Program.

Ready to Buy 65% of buyers purchase within a week Cost Effective 46% lower than average Dealer ad spend High Growth 70% increase in Used Car site traffic

CONTACT US TODAY 866-480-1313 • info@truecar.com • truecar.com/dealers