How much does speeding the onboarding process actually cost?
Managers in the automobile sector have been telling their employees the real cost of a lead for years. A phone call or a walk-in consumer was thought to cost $200–300 when I started in 2003. It is much higher now. Take the overall marketing expenditure and divide it by the total number of leads to arrive at the calculation. Simple, but the true cost of expediting your new hire’s onboarding is far higher than that.
Many managers in the automotive sector think that making mistakes is the only way to learn, but does this have to happen right away? The majority of newly hired employees have little to no expertise in the auto sector and are unable to deliver the kind of positive customer experiences needed to increase brand loyalty. Customers are pushed toward our competitors as a result of this lack of trust, and we lose out on several post-sale revenue-generating options, such as repeat business, trade-ins, referrals, service work, etc. Additionally, profits are increasing, and there is a monthly difference of five units between an average sales consultant and a new employee. What are the actual costs associated with passing up so many possibilities, when everything is considered?
Things worsen. The mental strain a new hire experiences during their first few days of work when they are required to interact with clients is detrimental to their long-term performance with a new organization. In many circumstances, a new employee is still debating whether or not choosing to work in the automobile business is the proper move. Let’s face it, Nobody wants to sell automobiles when they grow up but the owner’s children. For a small number of people, being forced to perform in front of other top performers who have years of experience motivates and inspires them. The majority, though, are just disengaged by it, and they begin to hunt for opportunities elsewhere while consuming leads. They leave after a few months, so you have to start the procedure over.
There is no way to completely avoid the costs of employing a new employee, but investing in a well-organized onboarding and orientation program will significantly cut those expenditures. Give your new employee time to get to know everyone in the organization by taking it easy. Inform them about the company’s history, values, mission, and vision. Give them the fundamental skills and allow them time to internalize them. Play out each phase of the procedure so that they are familiar with the general flow and how to carry it out. While they don’t need to be flawless, they must exude confidence when speaking with clients. You might think that this costs too much and that it takes a while. It is negligible in comparison to the cost of inappropriate onboarding. There are just two options left: “Pay now, or pay a lot more later.”
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