Dealerships are facing labor issues daily related to recruiting, retention, utilization, and performance. Reduce lead times and increase gross profits dramatically after incorporating on-demand labor into their operations.
What is Dealership Labor Pool?
A labor pool is a network of independent workers familiar with your operation that can work on an as-needed basis. It is a flexible extension of your trained workforce that you build over time by rotating a mix of new and familiar workers into your operations for short periods of time.
In normal times when the volume is steady, meeting demand is not be a tall task. But when your volume is unpredictable or your company runs a big promotional sale, it’s daunting thinking about how you’ll sell twice the volume of vehicles with the same customer service commitment.
“It’s impossible!” you say. But we’ve seen time and time again how companies are able to meet this fluctuating or unpredictable demand with their labor pool.
If you’ve built up a labor pool of reliable workers, you can quickly inject just the right amount of labor into your operation.
Just keep the same level of full-time employees you already have, while also posting the work opportunity to your labor pool. Then workers, already trained, can help you meet that extra demand and maintain the commitment your company stands by. In doing so, you aren’t creating significant overtime expenses or missing sales or commitments to your customers.
How this Labor Pool is different from Traditional Staffing?
Let’s take the prior example of a promotional sale and assume you are using a traditional staffing method to staff up for more sales which include hiring a bunch of new employees. Or, you could sign a temporary staffing agreement, commit to working with a certain number of workers, and bring in temps ahead of the increase in sales.
These upfront costs drive your costs per unit up and decrease overall labor productivity in the short term but with no lasting benefit.
All the while, you’re constantly overstaffed or understaffed based on current demand because of your fixed contract. After the sale, you are likely going to have to lay off all of those employees you just hired a couple months prior.
If instead you used the “new paradigm” model, you would be able to scale up just-in-time, based on demand. You could dip into your labor pool, which has been filled over time with your network of operators who are already familiar with your operation.
When you bring in the workers who you have already trained, there is zero cost to scale because you aren’t having to commit resources and money to onboarding and training workers.
There are costs associated with the initial process of building a labor pool, such as the cost of time spent training new workers for the first time and costs associated with finding the workers. However, these are short-term costs that you will only face while building the labor pool. Once the labor pool is built, you will have established a training method that is repeatable so that you can more efficiently train any new workers.
With trained on-demand workers, you will have a flexible extension of your workforce ready to work with no training or onboarding costs.
we help businesses implement our marketplace of on-demand labor to develop flexibility and competitive operations.
The Top Five Benefits of a Dealership Labor Pool
1. Reduces Turnover / Improves Retention
With a labor pool, you rely less on full-time employees (FTEs) and therefore aren’t trying to hire constantly. As a result, you experience less true employee turnover and maintain a strong core FTE base. Overtime can lead to burnout, and burnout is a leading cause of turnover, according to a recent employee engagement survey. Instead of causing burnout and turnover, you can build a known group of people who are ready to jump in and work when needed.
2. Enables Scalability
With a labor pool, you have just-in-time labor capacity to execute any order on time and in full. Additionally, you are able to bid on work more competitively knowing you can scale as needed to hit the desired service levels.
3. Reduces Overtime Pay
With on-demand labor capacity, there is no need to have overtime. This helps you improve your margins and avoid causing your FTEs to leave from being pushed 50+ hours a week for months on end.
4. Improves Labor Productivity
Because your labor costs are known and aligned with demand, you can ramp up labor capacity without fear of excess labor costs or lost labor productivity. Productivity isn’t an issue because your labor pool is already trained and familiar with your operation, so you aren’t wasting time training and onboarding over and over again.
5. Improves Work Culture
With on-demand capacity at the ready, your FTEs will feel less stressed by not being overworked. They will feel that they are part of the privileged, core group at the company and are motivated to keep their spot as fresh talent works beside them on a regular basis. Plus, they might pick up a few new skills from exposure to workers who are routinely working other sites and learning new ways of doing things.
Ready to build your labor pool?
Our on-demand labor platform has built-in functionality that enables you to designate workers as part of your preferred labor pool. Using a tool like this, over time, you’ll build your labor pool to a sufficient size to support any demand swings you might have.
Create a free business profile with Veryable and begin posting opportunities today.
The on demand labor marketplace for auto sales, renting, and leasing.
Meet your Instructor
Shamel Leonard
- The founder and CEO of the Auto Dealer Business School.
- A licensed Six Figure Dealer with 10 years of experience in used car sales and running a dealership.
- With a passion for cars!
Shamel turned her struggling dealership around by using basic business principles, technology and a team.
In the beginning, I had many challenges with business operations, like making enough profit and dealing with vehicle inventory issues. I learned from my mistakes and created the Auto Dealer Business School to help you overcome these issues saving you time and money!
Recognizing the value in passing on knowledge, I established the Auto Dealer Business School to help aspiring entrepreneurs who want to build a car business. The Auto Dealer Business School offers time saving, wealth building courses and guidance on running a successful auto dealership, attracting people from all walks of life who are eager to join this recession proof industry.
Pursue your dreams and overcome challenges today by attending this no cost training!
Dealerships are facing labor issues daily related to recruiting, retention, utilization, and performance. Reduce lead times and increase gross profits dramatically after incorporating on-demand labor into their operations.
What is Dealership
Labor Pool?
A labor pool is a network of independent workers familiar with your operation that can work on an as-needed basis. It is a flexible extension of your trained workforce that you build over time by rotating a mix of new and familiar workers into your operations for short periods of time.
In normal times when the volume is steady, meeting demand is not be a tall task. But when your volume is unpredictable or your company runs a big promotional sale, it’s daunting thinking about how you’ll sell twice the volume of vehicles with the same customer service commitment.
“It’s impossible!” you say. But we’ve seen time and time again how companies are able to meet this fluctuating or unpredictable demand with their labor pool.
If you’ve built up a labor pool of reliable workers, you can quickly inject just the right amount of labor into your operation.
Just keep the same level of full-time employees you already have, while also posting the work opportunity to your labor pool. Then workers, already trained, can help you meet that extra demand and maintain the commitment your company stands by. In doing so, you aren’t creating significant overtime expenses or missing sales or commitments to your customers.
How this Labor Pool is different from Traditional Staffing?
Let’s take the prior example of a promotional sale and assume you are using a traditional staffing method to staff up for more sales which include hiring a bunch of new employees. Or, you could sign a temporary staffing agreement, commit to working with a certain number of workers, and bring in temps ahead of the increase in sales.
These upfront costs drive your costs per unit up and decrease overall labor productivity in the short term but with no lasting benefit.
All the while, you’re constantly overstaffed or understaffed based on current demand because of your fixed contract. After the sale, you are likely going to have to lay off all of those employees you just hired a couple months prior.
If instead you used the “new paradigm” model, you would be able to scale up just-in-time, based on demand. You could dip into your labor pool, which has been filled over time with your network of operators who are already familiar with your operation.
When you bring in the workers who you have already trained, there is zero cost to scale because you aren’t having to commit resources and money to onboarding and training workers.
There are costs associated with the initial process of building a labor pool, such as the cost of time spent training new workers for the first time and costs associated with finding the workers. However, these are short-term costs that you will only face while building the labor pool. Once the labor pool is built, you will have established a training method that is repeatable so that you can more efficiently train any new workers.
With trained on-demand workers, you will have a flexible extension of your workforce ready to work with no training or onboarding costs.
we help businesses implement our marketplace of on-demand labor to develop flexibility and competitive operations.
The Top Five Benefits of a Dealership Labor Pool
1. Reduces Turnover / Improves Retention
With a labor pool, you rely less on full-time employees (FTEs) and therefore aren’t trying to hire constantly. As a result, you experience less true employee turnover and maintain a strong core FTE base. Overtime can lead to burnout, and burnout is a leading cause of turnover, according to a recent employee engagement survey. Instead of causing burnout and turnover, you can build a known group of people who are ready to jump in and work when needed.
2. Enables Scalability
With a labor pool, you have just-in-time labor capacity to execute any order on time and in full. Additionally, you are able to bid on work more competitively knowing you can scale as needed to hit the desired service levels.
3. Reduces Overtime Pay
With on-demand labor capacity, there is no need to have overtime. This helps you improve your margins and avoid causing your FTEs to leave from being pushed 50+ hours a week for months on end.
4. Improves Labor Productivity
Because your labor costs are known and aligned with demand, you can ramp up labor capacity without fear of excess labor costs or lost labor productivity. Productivity isn’t an issue because your labor pool is already trained and familiar with your operation, so you aren’t wasting time training and onboarding over and over again.
5. Improves Work Culture
With on-demand capacity at the ready, your FTEs will feel less stressed by not being overworked. They will feel that they are part of the privileged, core group at the company and are motivated to keep their spot as fresh talent works beside them on a regular basis. Plus, they might pick up a few new skills from exposure to workers who are routinely working other sites and learning new ways of doing things.
Ready to build your labor pool?
Our on-demand labor platform has built-in functionality that enables you to designate workers as part of your preferred labor pool. Using a tool like this, over time, you’ll build your labor pool to a sufficient size to support any demand swings you might have.
Create a free business profile with Veryable and begin posting opportunities today.
The on demand labor marketplace for auto sales, renting, and leasing.
Meet your Instructor
Shamel Leonard
- The founder and CEO of the Auto Dealer Business School.
- A licensed Six Figure Dealer with 10 years of experience in used car sales and running a dealership.
- With a passion for cars!
Shamel turned her struggling dealership around by using basic business principles, technology and a team.
In the beginning, I had many challenges with business operations, like making enough profit and dealing with vehicle inventory issues. I learned from my mistakes and created the Auto Dealer Business School to help you overcome these issues saving you time and money!
Recognizing the value in passing on knowledge, I established the Auto Dealer Business School to help aspiring entrepreneurs who want to build a car business. The Auto Dealer Business School offers time saving, wealth building courses and guidance on running a successful auto dealership, attracting people from all walks of life who are eager to join this recession proof industry.
Pursue your dreams and overcome challenges today by attending this no cost training!