Now that the busy season for agricultural, groundcare, and construction equipment dealers is over and things have slowed down a bit, it’s time to look at how well your employees performed, and if they’re a good asset to your dealership.
Employees are an essential element of the day-to-day business, and poor-performing employees affect your bottom line. Employees do well with feedback, and studies show that companies who implement regular employee feedback have a turnover rate 14.9% lower than employees who don’t receive feedback. As you prepare to forecast your sales goals and requirements for next season, you need to make sure you evaluate your employees’ abilities.
Evaluating employees lets you create a measurement of success and work towards a certain goal. It reminds your employees and managers what you expect in their performance. If you determine certain staff members aren’t worth keeping, you can start to look for new talent for your dealership.
After the end of the busy season, it’s a great time for new hires because many dealerships will reduce or cut staff. This gives you a perfect chance to find an employee who actually has experience with agricultural, groundcare, or construction equipment.
The process also helps you establish written proof of their work performance and is a good legal step every company should take. It creates a record for both you and your employees on their performance, your feedback, and their response. You can look back on this record throughout the year, especially if you have any more problems with their ability to perform a task or want to measure their improvement over time.
It’s time to get down to business and measure employee performance. Okay, so what do you measure? It’s not just about which employee is doing a good job and which one comes up short, is it? No. You need to look at how well the employee functions within the workplace.
The metrics you choose should be related to the task the employee performs. If you have an employee who works in a parts department, you want to make sure they have good knowledge of the parts inventory, can adequately explain terms to customers, and are comfortable with requests.
However, if you have an employee in sales, you would want to know how many times they can close the deal, their average sales numbers, and if they routinely upsell. Look at the different employee types you have and then make a list of what to measure.
There are also metrics that you can apply to any employee. Does the employee mind staying late or coming in early if asked? Do they throw a fit when a manager makes the request? What about their ability to listen? Do they have to consistently explain tasks to them? How long do they take to handle a call or request? Do they routinely call out or miss days?
If any employee comes up short in the above questions, and just isn’t a good team player, it’s time to make a decision which employees you should keep, train, coach, or simply let go. Got a great employee? Fantastic! Don’t forget them. Take the time to reward your employees as recognition is the top asset a manager can offer to inspire great work, according to this workplace research.
Your managers do more than just manage a department in your dealership, they also help manage and motivate employees. As the day-to-day supervisors of your staff, they can spot the specific strengths and weaknesses of each department. For instance, a service manager would know the recovery rate and which employee made the best contribution towards it. They would also know who is struggling or even bringing down the team.
Go over various employee metrics together and evaluate employees based on a list of criteria. Ask your managers their thoughts on the team and ask them to pinpoint any weak points. Be sure you ask concrete questions about their team. These could include:
Finding the answer to these and similar questions will let you start refining your team. You’ll be able to discern which employees should stay, which should go, and which might need additional training or correction. And, of course, who should be rewarded.
There are several ways to evaluate your employees. You may want to use a form to assign a numerical value to each aspect of your employees’ performance, or use a formula to calculate their effectiveness.
One of the best ways for dealerships to evaluate their employees was developed by Bob Clements International (BCI). As experts in helping dealerships build successful businesses, Clements and his team have seen thousands of employees and businesses. They figured out that there are 6 basic types of employees, with each having their own level of effectiveness. The employees can be classified into the following:
It doesn’t take long to see which employees fall under which description, does it? Having incompetent employees in a dealership can be troubling, especially if they are dealing with customers or any type of repairs.
Working with equipment for the agricultural and groundcare industry means you need to ensure the utmost safety and compliance. Make sure you take the proper steps to train. You can also make an exit plan for any employees who aren’t passing muster.
Want to make your business even more efficient? Check out our monthly checklist that every dealership owner and manager should use on a monthly basis.
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