One of the strongest differentiators we have in the distribution business is those talented, hardworking and caring employees that man the front line. Yet how do we show them that we appreciate their efforts and are proud to have them on our team?

Many of you have by now become familiar with "the service profit chain." This was a term coined by three Harvard University professors nearly ten years ago now. The chain covers the following four items.

1. Employee satisfaction and loyalty
2. Service Value
3. Customer satisfaction and loyalty
4. Sales growth and profit

The happier and more satisfied your employees are in their jobs and workplace the more customers will be loyal and satisfied themselves. It makes sense and it is something we should pay a lot more attention to in our daily work. There is a direct correlation between employee satisfaction and loyalty and customer satisfaction and loyalty.

There are several things that I am going to assume are present in dealerships.

• a proper competitive pay and benefits package
• job descriptions and performance standards for each employee
• a regular and professional employee performance review
• a planned training program for each employee
• regular and spontaneous recognition programs
• "hero" stories of exemplary performance
• managers and supervisors who are leaders not commanders

This is a very short list of items that are necessary to maintain employee satisfaction and loyalty. I believe we need to go even further. If we are to attract and retain the "best of the best" we need to put our money where our mouth is in many ways.

The AED Foundation has put forward a modest goal of 40 hours of training per employee per year. This is a wonderful start. But I believe we need to structure this more clearly and expand our horizons.

Do you have a skill set inventory for each of your employees? Do you have an agreed plan with each employee as to their personal development? Is it written down and checked regularly?

Sitting down with each employee and taking the time to find out specifically what they want and what they have to offer is a basic and fundamental requirement if we want loyal and satisfied employees. It goes to the heart of the matter in the supervisor/employee relationship. It is those three magic questions in any personal relationship.

• Can I trust you?
• Do you care about me?
• Are you committed to excellence?

When we make an attempt to show that we care it helps. It is also something that is common sense. Trusting people is a function how clearly we describe the tasks that need to be done. Train people to do the job. Explain what the standards and expectations are for the job. And then get out of the way and let them do it. Every employee wants to do a good job. We have a responsibility and an obligation to tell them what that "good job" means.

Which brings me to the issue of training employees and its' importance. The AED Foundation works in concert with a group of individuals and companies to offer classroom training sessions on a wide variety of subjects. In the product support area - Quest, Learning Centers has developed five two day classes for parts and service. (Details can be seen either on the AED website www.aednet.org or on our website under the Quest tab at www.rjslee.com). We have also worked together to develop self learning modules within the AED University program. There are two new programs one for parts management and one for service management. (There will be more modules coming in 2004). At the convention in Orlando there will be more training sessions available. As you can see training is a significantly important aspect of the recruitment and retention of quality employees for the AED Foundation as well as for dealers and distributors.

Many people ask me about training. One of the most troubling aspects for many owners and executives is that training provides what I call "walking around assets". This is the knowledge that each employee has the opportunity to absorb and learn in training sessions. The question many people ask is - "I am going to spend a lot of money on these training programs and what if the employees leave?" The world is changing rapidly; products and services offerings are expanding; technology is advancing in every direction; the internet is here; how can anyone survive without training? Isn't the right question to ask more like - what if I don't train our employees and they stay?

We get what we deserve or what we earn.

To learn more, check out the offerings from Quest, Learning Centers.