It’s time to give everyone in your dealership a big raise!
Yes I said it, but this time you won’t have to open your checkbook to give every employee that works for you a raise.
How do you justify a pay increase for everyone in your dealership? I have a way to give every employee in your dealership a raise — it’s powerful to the overall strategy of your dealership because it will foster increased sales and dealership profit! After reading this blog, go practice what I have shown you, and you will see an immediate response in employee attitudes and behaviors. So let’s go and give everyone a big raise (and it won’t cost you a penny)!
Most of you may think that money motivates your employees, right? Yes, compensation is an important factor that determines job satisfaction and employee engagement, but it’s not at the top of the list. In several research studies, the construct of pay ranks second or third behind other aspects of the job. In other words, pay is only a part of the equation of what makes an employee happy, satisfied and engaged in their work.
Other than pay, employees value working for employers who appreciate their work and let the employees know it on a regular basis. Another aspect is being able to do their work using the knowledge and skills that they personally bring to the table. This translates into letting the employee do the job without micromanaging every step. In other studies, employees have said that having a good working relationship with their supervisors or managers is more important than pay. Personally, I have learned a great deal from managers that I had who I respected and liked. The work dynamic is so much more productive when this type of relationship exists.
If you want to give your employees a boost in morale, personal job satisfaction and personal productivity, don’t do it all with money. Do a lot of it with a lot of praise! Below are some guidelines for giving praise. Giving praise is very hard for some dealer principles and managers. It takes continual practice in order for the praise to be meaningful and powerful. I know a lot of managers who are quite skilled in giving positive feedback. The key is to do it on a regular basis, be genuine and be sincere. Be this kind of manager! Remember that praise is often more powerful than a pay raise.
Authors Christopher F. Achua and Robert N. Lussie write in their book, “Effective Leadership,” of a four-step process to implement and practice in reference to giving high-quality praise:
- Tell your employee what was done correctly.
- Tell your employee why the behavior is important.
- Stop for a quick moment of silence.
- Encourage repeat performance of the behavior.
Practice these four steps, and give everyone person who works for you a raise! Give constant and continuous feedback to your employees. Yearly reviews are passé and not effective according to most modern management practices. What is healthy for your dealership is to be in constant communication with your employees and give praise where and when it is needed.
The four steps above are for giving praise and not giving punishment. Become a master at this, and you will see higher levels of employee performance and profits. So close your checkbook and open your mind. Do everything you can to increase employee performance outcomes and keep your employees loyal and happy!
