Articles

For the past three years, since the fall of 2008, the pendulum has been on the side of the employer. Now it is starting to swing. The employers have been able to keep employees not necessarily because they were good bosses but because the employee had a job in a very difficult employment period.

There have been consequences to this that in many ways have been outside the control of the employer. Wages have not gone up, work load has. Vacations have been delayed, extra hours or work has become the norm. Things have been very difficult. There have been layoffs, there have been furloughs, and there have been pay cuts. This is not the same world we had up until 2008, and that world will in all likelihood not return. Welcome to the new reality.

For many of you the real challenge going forward is to find and retain talented people in all of the job functions in the dealership. This will be a serious challenge as there are fewer people coming into the industry and many more people leaving it. This will cause serious hardships. The pendulum will begin swinging back to the employees’ side of the scale. There will be head hunters and others who will make job offers to your talented employees for more money or more status or more interesting work. Remember, the grass is always greener on the other side of the hill.

The other element, which I have discussed with you recently, is that the standard four-year liberal arts education is no longer a guarantee of a worthwhile job or career. Noted economist Paul Krugman recently wrote about the “Doughnut Hole” work force in which the lower income levels are growing and the upper income levels are static, while the middle income levels are shrinking. This coincides with increasing enrollment in technical and vocational schools in America.

With the competition for talented people on the rise, the number of entry-level workers shrinking, and the baby boomers hitting retirement, business will be challenged in reinventing the work that is to be done. Technology has made a very large impact in eliminating routine repetitive tasks – in fact you even have computers beating the chess champions and the best contestant at “Jeopardy.” The advances in technology as well as the use of outsourcing will allow businesses to completely modify work place functions.

So here we are:

• The work place is slowly returning to normal.
• Hiring has started, albeit slowly.
• There is a serious shortage of skilled people.
• Wages for talent will rise.
• The nature of work at the dealership will change.
• The older employees will be retiring – or staying longer at the job.

How are you going to adapt to these changes?

It is just another challenge to confront. You have made it through one of the toughest, most demanding economic failures in generations. You have to make sure you continue to employ the skilled staff that has stuck with you – the ones you had determined to keep. Now you have to reinvent your business and figure out how the work will be done.

Remember, employees will stay with an employer that offers a series of conditions.

• A boss they respect and admire
• A company that helps them learn
• A job function that is interesting and offers a challenge
• A career path
• Training and development

That is self-evident for many of you, but not for everyone. And it should be.

Then you will have to deal with the technological aspects of the changes.

• The use of the most current Dealer Business Systems
• The use of the most current technologies
• The use of the most current communications devices
• The use of CRM for territory management
• The use of GPS to track equipment and company vehicles
• The use of wireless devices
• The use of the Internet for order processing

There is a lot to be done. It can be intimidating but it starts with the first step. Those of who you embrace this challenge and develop your dealerships will prevail, and your employees won’t be ready to walk away when they hear the music play. They will choose to stay with you and help you to succeed. That is the future you should look toward.