Hiring and retaining quality employees has long been a challenge in the automotive industry. Candidate pools are limited, recruiting resources are low and finding the time for the process is tricky.
Recently, an extremely competitive job market has made things even harder, with many companies responding by changing how they hire. But doing so carefully is important, since lax hiring practices can lead to a costly employment practices claim.
If your aftermarket business is considering making changes to your hiring practices to improve business and reduce turnover, make sure the changes you make don’t expose you to excess risk.
Here are five tips to improve hiring practices and reduce turnover in 2022, without increasing the risk of a claim to your business.
1. Expedite the Process
With almost everyone hiring, job candidates have lots of options. Your job opening must compete with those of other aftermarket businesses as well as other industries. That makes speed an important factor and businesses that can expedite their process will have more luck filling positions.
A typical hiring process has numerous friction points that can lead to job candidates looking elsewhere or taking another offer before you can make yours. To speed things up, take a look at your current process to see what can be expedited.
- If you need to fill a position, ask candidates to complete an application, rather than collecting resumes a hiring manager will have to pore over later.
- If you use an application process, create a short customized application that asks only the most necessary info and can be completed in a few minutes.
- If you have an opening you need to fill, create a process to call a candidate immediately to set up an interview when you receive their application.
- If you require a drug test for employment, consider options that offer faster results, such as mouth swab tests, which are ready in about 10 minutes.
- If you require a skills test, consider testing candidates with tasks that can be completed in a matter of minutes, as opposed to those lasting hours.
As you look to speed up your process, remember to keep protections in place to minimize risk for your workers and business. Maintain background checks and other procedures while making the process for them faster.
2. Host Hiring Events
Traditionally, it could take days or weeks for applicants to hear back about an application. But today, these red tape delays in the hiring process can frustrate applicants and lessen your chance of finding good hires. If your business is growing, consider hosting one or more on-site, in-person hiring events.
On-site hiring events have the potential to expedite and improve the hiring process and lead to more high-quality hires, while in-person events give you a chance to meet job candidates face to face. Events can include an application submission, interview, background check and drug screening all in one day, making it possible to make an offer to a qualified candidate as soon as the same day.
In order to minimize your risk of a claim during on-site and in-person hiring events, make sure to take the proper precautions:
- Require an application to control what information is volunteered by candidates.
- Know what questions you can and can’t ask applicants during a job interview.
- Treat everyone the same, standardizing the process for applications, interviews and checks.
- If candidates volunteer personal information, don’t use it to make your hiring decision.
3. Offer Job Flexibility
Fixed schedules and long hours used to be standard for many jobs, but this is changing. If you are having difficulties filling certain roles, it may help to offer more job flexibility.
Determine if it makes sense for your business to rethink hours and schedule requirements for key positions. Two part-time positions may make more sense than one full-time position. Or, some roles may lend themselves to more scheduling flexibility. Also, consider ways to make it easier for employees to handle outside commitments like childcare, while maintaining a high level of productivity and job performance in the workplace.
In order to minimize the risk of a claim, be sure to put job requirements and workplace rules in writing. Apply rules fairly and equally to all employees and offer the same accommodations you agree to for one employee to all your employees.
4. Provide Incentives
Hiring practices are undergoing lots of changes, but some traditional recruiting and retention tools still work in the new economy. Providing incentives to new hires and current employees can still be effective for hiring and retaining quality employees.
Incentive ideas can range from sign-on bonuses, performance awards, paid vacations and employee benefit packages to free snacks, social outings, referral bonuses, professional development and other workplace perks. Consider a mix of one-time, recurring and continuous incentives of different levels and costs that are appealing to your workforce and appropriate for your business.
Minimize your risk when developing an incentive program, by putting the terms in writing in your employee handbook. Be fair to new and existing workers and offer incentives to all employees who meet the requirements you set.
5. Focus on Retention
With all the difficulties facing the automotive industry today, it’s no wonder the average dealership experiences a nearly 70% turnover rate. Businesses with higher turnover can face more workplace challenges, from difficulty refilling positions to lower workplace morale and more claims. With the stakes this high, focusing on retention is key.
Higher employee retention has many benefits, including better workplace culture, higher customer satisfaction and a lower risk of claims. Incentives for retaining employees can be similar to those used to woo job applicants. Consider cash bonuses as well as non-cash perks that improve workplace culture.
When offering these employee bonuses and perks, make sure to be fair and equitable. Put in writing what incentives will be available when and how, and ensure that all employees have an opportunity to benefit from the incentives you make available.
How to Protect Your Business from Claims
As you work to improve your hiring practices and reduce your turnover, take care to minimize your chance of a claim. Employment practices liability (EPL) claims can result when an employer and employee have a dispute over hiring practices, working conditions or the termination of employment.
While aftermarket businesses have little control over broader employment trends in the auto industry, it is possible to take steps to help reduce your own employee turnover. Improving your hiring practices and reducing turnover has many benefits, including better workplace culture, higher customer satisfaction and a lower risk of EPL claims.
Along with helpful tips for managing risk at your business, Lockton Affinity Aftermarket offers customized insurance policies to help protect your business and employees. Visit LocktonAffinityAftermarket.com to learn more.
