This document provides tips for hiring the right employees. It discusses the costs of bad hires and the importance of using tools like effective applications, behavioral interviews, references checks, background checks, and scorecards to reduce hiring risks. It also emphasizes establishing clear expectations, listening to employees, recognizing good performance, and creating an attractive workplace to help retain top talent. The goal is to spend time upfront selecting the right candidates in order to spend less time managing problems later.

1. – KPA CONFIDENTIAL –
How to Hire the Right Employees

2. The People Profit Connection
Did you know…..
 That the cost of a bad hire is 1.5 to 2 x the
annual salary?
That companies spend on average $1700
per employee to comply with workplace
regulations?
That harassment cases cost on average
– Pre-trial settlements: $300,000.
– Litigation judgments: $1.8 Million
2– KPA CONFIDENTIAL –

3. The People Profit Connection
Did you know…..
That on average 35% of operating expense
is attributed to employee compensation
and benefits?
 The average implemented employee
suggestions saves a company $6,224 in
operational expenses according to the
Employee Involvement Association
 The typical worker wastes about 2 hours a
day- and the cost is a staggering $759
billion a year nationwide! (SHRM)
3– KPA CONFIDENTIAL –

4. How to Hire the Right Employees
4– KPA CONFIDENTIAL –
Retain
Select
Attract
Be the place everyone wants to work
Select the best because you have a choice
Keep the best through a good working environment

5. Challenges in Attraction
• Economy
– Competitive wages and benefits
• Industry Reputation
– Concerns with employment opportunities
• Proprietary components/diagnostics
– Qualified Candidates
5– KPA CONFIDENTIAL –

6. Create An Attractive Workplace
• Training and development opportunities
– Performance Reviews
– Webinar training, “lunch and learn”
• Competitive wages
– Salary.com
– Jobstar.org
– Local economic development and labor departments
• Innovative benefits
– Discounts
– Benefit pay
– PTO vs. vacation
6– KPA CONFIDENTIAL –

7. How Can Candidates Find You?
• Employee referrals
• Partnerships with high schools and
vocational schools
• Community outreach (low cost)
• Job fairs
• Local press (low cost)
• Advertising
Be recognized as a top employer and candidates will find you
7– KPA CONFIDENTIAL –

8. Hire the right person for the right job
• Dealerships report they spend less than 4
hours in the hiring process*
• Cost of bad hire is 2 to 3 times the annual
salary
• 95% of a managers time is spent on 5% of
the employees
Bad hires cost you money, and even worse they keep you up at night!
*survey of 268 dealerships
8– KPA CONFIDENTIAL –

9. First Things First
Job Description
9– KPA CONFIDENTIAL –

10. Are you using the right tools for the job
• Effective job application form
• Conduct a behavioral interview
• Personally conduct references
• Perform background check
• Use a scorecard to make objective decision
If the answer to any of these questions is anything
but yes- then you are taking on more risk than is
necessary and increasing your chance of making a
bad hire
10– KPA CONFIDENTIAL –

11. The Five Tools
Effective Application
Behavioral Interviewing
Reference Checking
Background Checking
Candidate Scorecard
11– KPA CONFIDENTIAL –

12. The Five Habits
Follow a defined process
Use the five tools
Always be recruiting
Include others in the process
Never talk yourself into saying yes
12– KPA CONFIDENTIAL –

13. Advanced Hiring Techniques
Skill Testing
Assessment
Testing
Job
Simulation
13– KPA CONFIDENTIAL –

14. Hire the right person for the right job
• Using the five habits and the five tools will:
– Establish a proven method to reduce the risk
of making a bad hire- do what works!
– Save time by using the five tools to screen out
poor fit early in the process- don’t waste your
time!
– Reduce the time you spend on management by
hiring the right person in the first place- spend
your time on your top employees!
Time is money, can you afford to make poor
hiring decisions?
14– KPA CONFIDENTIAL –

15. Retaining Employees
• Spending time on retention is good
business
– Reduces training
– Improved productivity
– Creates an attractive workplace
• Retaining poor employees is bad business
– Performance reviews
– Disciplinary action plans
Remember that 95% of a manager’s time is
spent on 5% of the employees, but your goal is
to reverse this equation in your dealership
15– KPA CONFIDENTIAL –

16. Best Practices for Retention
• Set clear expectations
– Pay Plans
– Job Description
– Performance Reviews
• Listen to employees
– Brown Bag
– Blog
– Hotline
• Have some fun
– Contests
– Company Events
– Recognize and reward
Never forget the power of “thank you, I appreciate what you do”
16– KPA CONFIDENTIAL –

17. Ideas from other dealerships
• Incentive plans based on gross profit
• Write a thank you note
• Personally wash employees cars
• “Caught in the Act” program
• Lunch with the boss
• Extra time off
• Boss for a day
17– KPA CONFIDENTIAL –

18. Hiring the right person for the job
• What makes a company attractive to
candidates makes it easy to retain
employees
• Use the five tools and five habits to hire the
right person for the right job
• Spend time upfront to hire the right person,
it will be the best use of your time
• Don’t spend your time on the bottom 5%,
spend your time on the top 25%
18– KPA CONFIDENTIAL –

19. Contact Information
19– KPA CONFIDENTIAL –
www.kpaonline.com
bross@kpaonline.com
866-356-1735