The Case for Continuous Dealer Employee Education – Part I

Most of us are believers in “continuous education,” right? We understand that our environment is constantly changing. That includes both state and federal politics and regulations, technology, industrial processes, economic and seasonal business cycles, interest and inflation rates, and a host of other variables. We have to keep up with these business “currents,” so we can anticipate and respond appropriately as changes occur.

Though most of us are “believers,” one has to ask how that translates into reality in the day to day lives of our businesses. It’s more common than some think that the approach winds up being:

  1. When things are good, we’re too busy to focus on employee education.
  2. When things are not so good, we can’t absorb the cost of employee education.
  3. Our employees don’t want or need education; on-the-job training is good enough.
  4. If we educate our employees, our competitors will steal them from us.
  5. Manufacturer training is all we need; the “laws” don’t require employee training.
  6. It’s difficult to find education opportunities that focus on my dealer’s needs.

This is unfortunate, though, because when you actually look objectively at the data supporting continuous education, the real question becomes clear, in other words, “what is the cost of not educating your employees?” Not educating employees…

  1. Can set your business and its employees up for so-so results or failure. You can set individual goals for efficiency and productivity, however, do the employees know what success looks like? Do they have the knowledge and skills to implement processes and procedures that can actually achieve the results you desire? Where will they learn best practices and the performance metrics that can help them improve?
  2. Will encourage employee turnover. Several years ago, my own research on this indicated it was not unusual for a dealer to have 10% -15% turnover annually. More recent data indicates that number has climbed even higher. You have goals for your business but never forget that many of your employees also have goals for their careers and their families. When you promote someone, you want to know that they are well prepared for that job and continuous education really contributes there. Having employees know that you have a career path for them offering various possibilities and know what it will take to “get there,” is a strong incentive for them to stay and not just chase the next dollar with competitors.
  3. Impacts succession plans for key positions in the dealership. For example, we have heard a number of anecdotes about great technicians that don’t transition well into parts manager, service manager or product support positions… just to name a few. It’s true in other operational areas as well. You can improve that dynamic if you talk meaningfully with employees about where they are and where they want to be. People can be thrown into the water to see if they can swim, or you can ensure they are well prepared ahead of time to assume leadership positions. Other factors like mentoring, cross-training and stretch assignments also factor in, but continuous education should be a part of your employee development program to give them every opportunity for success as their career paths develop per individual development planning done in the context of strong employer-employee relationships.
  4. Impact other programs that are beneficial for your dealership. Employee turnover was discussed earlier. Employee reward systems also can contribute to your retention programs. Continuous education can be a foundation for such rewards. Excellent educational performance, attaining relevant certifications, and trying learning to identifiable project and program improvements can be incorporated into performance reviews, pay increases and criteria for promotion opportunities.

I hope this blog encourages you to look into the benefits of continuous education more. Ongoing company educational programs require commitment that starts with top executives and extends into the grass roots of the company. The program needs to be assigned to one person who believes in education and is held accountable for planning, implementation and results. If done correctly, the success of the program will be obvious, and grow and grow over time. I would encourage equipment dealers and those in other industries to incorporate continuous education into their foundational plans for success.

Look for Part II of this blog,

“How Good is the Education you Provide for Your Employees? – Part II

Learning Without Scars is an industrial education company that provides specialized, job function based online training classes, job function skills assessments, and lectures. Products are designed for manufacturers and their dealers, as well as independent businesses in the construction equipment, heavy truck, agricultural equipment, engine and automotive industries. Training is aimed at improving dealer parts, service, sales, marketing and customer service operations through qualified people that are knowledgeable in using operational metrics and current market and operational best practice methods.

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