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How Emotional Intelligence Impacts Sales Performance And Employee Retention In A Dealership}

How Emotional Intelligence Impacts Sales Performance and Employee Retention in a Dealership

by

Mike Poskey

One of the mysteries of the auto dealership world is why general managers and general sales managers assume that low productivity and the resulting high turnover are inevitable with their sales teams. Research has shown it is appropriate to apply the Pareto principle to salespeople whereby 20 percent of all salespeople now make 80 percent of all sales. That means 80 percent of the sales force fights over the remaining 20 percent of the business not produced by the top sales pros.

With so many salespeople competing for shares of such a small pie, the turnover rate in sales is obviously very high. But many auto dealer executives are willing to accept, as a cost of doing business, the unending expenses of recruiting, selecting, and training the continuing flow of newcomers into the sales rank. They should, instead, recognize that the poor sales productivity and high turnover rampant in the industry are the result of faulty hiring practices.

Research has shown that 80 percent of the essential competencies required for success in the workplace are emotional intelligence, which is far greater than IQ or personality traits. Emotional intelligence (EI) has been a buzzword in the business world for the last several years. By definition, EI is an individuals ability to recognize and regulate emotions in themselves and others. In practical application it is ones ability to understand how our emotions and the emotions of others impact action and performance.

EI has no greater application than in a sales position. A recent study by the Hay/McBer firm in Boston of Fortune 500 companies including AT&T, IBM, and PepsiCo found that the top 10 percent of the sales forces in the companies surveyed totaled nearly $6.7 million in sales while the norm was only $3 millionmore than 2 times the average or additional sales totaling 88 times the average salary of $42,000. The top 10 percent of those sales forces were very strong in EI competencies while the average salesperson was not.

In an objective study of more than 2,000 auto dealer salespeople designed to measure the EI competencies among those salespeople that were successful vs. those that were unsuccessful, the following five competencies were the most critical to predicting sales success and retention in the industry.

Intuition & Empathy. This is the salespersons awareness of the prospects feelings, needs, and concerns. This competency is important in a sales role for the following reasons.

[youtube]http://www.youtube.com/watch?v=SGWzM41RnNU[/youtube]

Attitude toward others: ones ability to look positively and objectively upon others

Understanding others: an intuitive sense of a prospects and/or customers feelings and perspectives and showing an active interest in their needs

Customer service orientation: the ability to anticipate, recognize, and meet customers needs

Results Orientation & Decisiveness. This is the salespersons adeptness at inducing desirable responses from the customer or prospect. This competency is important in a sales role for the following reasons.

Communication: sending clear and convincing messages that are understood by the customer or prospect

Influencing: using effective tactics and techniques for persuasion and desired results

Gaining commitment: ones ability to develop a motivation act

Self View. This is the salespersons level of courage and self-esteem that provides thick enough skin to persevere through various obstacles they encounter throughout the sales cycle. This competency is important in a sales role for the following reasons.

Handling rejection: ones ability to handle a no or a nonsale and to not take it personally and be able to recover and restart quickly to try again

Self-esteem: the higher the self-esteem the more passion and courage the salesperson will have in the social arena

Self Awareness. This is knowing ones internal states, preferences, resources, strengths, and limitations. This competency is important in a sales role for the following reasons.

Self-confidence: ones ability to believe in their own abilities and strengths to personally take charge in achieving and exceeding their goals

Persuasiveness: ones ability to stand their ground in negotiations and in handling sales objections to exude to the customer or prospect that their product or service meets their needs

Competitiveness: ones desire to win and be perceived as competent in the eyes of others, as well as desire to be personally recognized for their accomplishments

Self Expectations. This is the salespersons emotional tendencies that guide or facilitate reaching goals and their sense of personal commitment to responsibilities. This competency is important in a sales role for the following reasons.

Achievement drive: striving to improve or meet a standard of excellence we impose on ourselves

Initiative: readiness to act on opportunities without having to be told

Optimism: persistence in pursuing goals despite obstacles and setbacks

These are all essential competencies in selling in the auto dealership industry. The salesperson who knows the product or service inside out will not succeed in the long term without possessing these essential competencies.

Since we implemented an emotional intelligence pre-employment profile to help in our sales selection process, our retention has jumped from 10 percent to 77 percent. And not only do the employees stay longer, but they are more productive, catch on more quickly, and require less time in training, says Regina Roat, HR Director of Sterling-McCall Auto Group in Houston, Texas, which is part of Group 1 Automotive.

Auto dealers who are forward thinking and realize they are competing for top talent with other companies in their market are now implementing emotional intelligence into their selection process. Additionally, they are also providing emotional intelligence management development programs to assist their managers in leadership development, which has a major impact on improving the manager/employee relationship and is a critical piece to improving employee retention.

Mike Poskey is Vice President of ZERORISK HR, Inc., a Dallas-based human resources consulting firm that focuses on developing hiring and retention programs for the auto dealer industry. For more information, visit www.ZERORISKHR.com or e-mail Mike at Mike.P@ZERORISKHR.com.

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How Emotional Intelligence Impacts Sales Performance and Employee Retention in a Dealership
}

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Detroit teachers stage sickout to protest working conditions as Obama visits

Thursday, January 21, 2016

A majority of Detroit public schools were closed yesterday due to a coordinated “sickout” of teachers. This work stoppage was the latest in a series of showdowns with state government and was timed with an arrival by the President to attend an auto show. Activists used the opportunity to hold rallies to air their grievances publicly.

Educators have staged several work stoppages to protest the dilapidated state of public schools as well as Governor Rick Snyder’s plan for the schools, which involves spliting the school district in two. Yesterday’s protest closed over 85 schools and followed last week’s efforts which shut down more than 60 and prompted visits to school sites by Mayor Mike Duggan and inspectors. Detroit Public Schools is several hundred million dollars in debt and has been under the administration of emergency manager Darnell Earley for a year.

The “sickout” strategy attempts to sidestep Michigan law which prohibits teacher strikes. Schools have been found with mold in walls, crumbling infrastructure, and infestations.

In response to the sickout, the school district has filed a lawsuit and sought an injunction against the union as well as individual activists and teachers.

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Motorsport: Rick Kelly wins V8 Supercars Round 3 at Pukekohe NZ

Sunday, April 22, 2007

Rick Kelly has won round three of the 2007 V8 Supercar Championship, maintaining his points lead in the series. Kelly won race three after his Toll HSV Dealer Team team-mate, Garth Tander experienced a slow pitstop in lap 15.

Tander won races one and two, and fought back to finish the final race in eighth position. Both Kelly and Tander earned 58 points during the round, with the win awarded to Kelly for finishing higher in the final race.

At the end of round three, Kelly leads the championship on 173 points, team-mate Tander is in second place on 160 points ahead of Rick Kelly’s brother, Todd on 132 points.

This round marked the last V8 Supercar race at the Pukekohe Park Raceway in New Zealand. The 2008 New Zealand round of the series will compete on a temporary street circuit in Hamilton.

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MG Rover sold to Nanjing Auto

Friday, July 22, 2005

Administrators PriceWaterHouseCoopers (PWC) have announced that the British car company MG Rover and its engine manufacturer Powertrain Ltd has been sold to Chinese company Nanjing Automobile for an unknown sum of money. The company beat bids from Shanghai Automotive (SAIC), despite being the smaller of the two.

MG Rover collapsed this Spring, after struggling to make a profit for several years.

SAIC had tried to buy only the engine plant and then transfer it to China, but in June Nanjing Automobile approached PWC with a combined bid for both the car manufacturing company and Powertrain. This Monday SAIC bid for both but the offer was inferior to Nanjing’s.

Nanjing has indicated that it too will move the engine production plant to China, along with some car manufacturing. However it also intends to continue building cars in Britain, and establish an engineering research and design centre there in an effort to expand its sales globally. Nanjing intends to start hiring at once.

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Containers For Keeping Drinks Cool}

Containers for Keeping Drinks Cool

by

Jordan Rocksmith

When it’s hot outside, you want your drink to be cool. After all, what could be more refreshing than downing a chilled beverage on a sweltering hot day? However, drinks can heat up really quickly. Most Americans like their drinks fairly cool, so it’s disappointing to take a sip of something at room temperature. This is especially true for sodas. While ice is great for adding to drinks, it can dilute the flavor.Fortunately, there are a number of ways to keep your drinks cool without putting ice in them. To know what these strategies are, follow these tips fromChillCo, Inc.

Chilled Mugs

[youtube]http://www.youtube.com/watch?v=ouhCRDyu29g[/youtube]

One great idea is to invest in a chilled mug. You can find these at a number of home supply stores or Internet vendors where you would buy your other dishes. The cup contains liquid inside its walls that can be frozen. You stick the mug in the freezer and take it out, and voila, you have an icy mug. You can pour your drink in here and it will instantly chill. So forget about ice and enjoy a cool one for as long as the cup remains frozen. Note: These cups are not always dishwasher safe, so you may have to hand wash it.

Pouches

Thermal energy can be easily transferred to your drinks, particularly metal cans, which do not insulate as well as plastic bottles. Plastic is very thin on these bottles so you can expect them to collect heat, too. Even if you’re just holding these beverages, it will only be a matter of time before they lose their chill. So buy foam pouches for your drink. These fit snugly over your drink and protect against heat transfer. Plus, they feel good on your hand and you don’t have to clench an ice-cold beverage with your bare hands. If you don’t have a pouch, you can always use a thick sock that is clean. For more ideas, consultChillCo, Inc..

Since 1996, ChillCo, Inc. (

chillcoinc.com/parts.php

) has been providing customer-focused, comprehensive cooling solutions to commercial facilities with central chilled water plants and industrial plants with process refrigeration systems. Visit

ChillCo, Inc.

to know more information.

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Containers for Keeping Drinks Cool }

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Sulpicio Lines asks court to stop BMI investigation into ‘Princess of the Stars’ disaster

Monday, July 7, 2008

The Philippine shipping company Sulpicio Lines has asked a court to issue a temporary restraining order (TRO) stopping the Board of Marine Inquiry (BMI) from proceeding with its investigation into the loss of MV Princess of the Stars. The passenger ferry capsised and sank off Sibuyan island on June 21 during Typhoon Fengshen (known locally as Typhhon Frank) with hundreds of casualties.

Sulpicio told the Manila Regional Trial Court that both Republic Act 9295 and the Domestic Shipping Development Act of 2004 removed the BMI’s power to investigate maritime incidents and that the investigation the board launched on June 25 is “irregular, illegal, and null and void”. They say only the Maritime Industry Authority is allowed to investigate accidents at sea.

Sulpicio also described the investigation as an ‘inquisition’ that was biased against Sulpicio from the start. They say “prejudgment” has increased the “pervasive negative publicity” surrounding the line, since negative accusations are most often published in newspapers. The company says one comment the board made was “Your vessel is not stable!” “You have no business being a safety officer!”

As a result Sulpicio is seeking ?650,000 from the BMI. This is split down as ?500,000 in moral damages, ?100,000 lawyer’s fees and ?50,000 further costs.

The House Committee on Transportation also launched its own inquiry into the disaster today. The case for the TRO will be heard tomorrow.

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Wikinews Shorts: January 13, 2009

A compilation of brief news reports for Tuesday, January 13, 2009.

Contents

  • 1 Anti-government protests in Riga, Latvia cause riots
  • 2 Obama will close Guantanamo Bay in his first week say advisers
  • 3 Greek shipping magnate kidnapped in Athens
  • 4 Microsoft permits additional Windows 7 beta downloads
  • 5 Cristiano Ronaldo crowned Footballer of the Year
  • 6 Change of mind: Democrats accept Burris
  • 7 Obama inauguration to appear in Lego form
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US Supreme Court allows ‘light’ cigarettes lawsuits

Wednesday, December 17, 2008

The United States Supreme Court on Monday ruled that “tobacco companies that marketed ‘light’ and ‘low tar’ cigarettes may be sued for fraud.” The 5-to-4 judgment is expected to open the way for dozens of lawsuits claiming billions of dollars in damages.

In the certiorari ruling penned by Justice Stevens, the Court held that a class action brought under state law prohibiting deceptive advertising generally was not preempted by federal law regulating cigarette advertising. The lawsuit claims that tobacco makers who manufacture “light” and “low tar” cigarettes had deceived smokers into thinking the products are safer than regular cigarettes. Former United States Solicitor General Theodore Olson, now working with Gibson, Dunn & Crutcher, argued the case for the petitioners, Altria Group and Philip Morris USA.

Several smokers in recent decades switched to light cigarettes, with fervent faith they posed less of a danger to their health. But scientific or medical researches have shown this common-sense view is wrong. Although mechanical tests showed “light” cigarettes emitted less tar when burned, actual smokers inhale about the same amount of tar when they puff on a light cigarette, the studies found. The cigarette business faces more than 30 class-action lawsuits from smokers and ex-smokers who seek billions of dollars in damages and claim they were deceived by the marketing of light and low-tar cigarettes.

Respondents Stephanie Good and 2 others are Maine residents and for over 15 years smoked Marlboro Lights and Cambridge Lights cigarettes, which are manufactured by petitioners Altria Group and Philip Morris USA. They sought damages compensation for economic rather than medical harm, claiming they had overpaid for cigarettes based on fraudulent advertisements suggesting that light cigarettes were safer than regular ones. The Labeling Act requires tobacco companies to indicate rotating warnings on their packaging and advertising. “No requirement or prohibition ‘based on smoking and health’ shall be imposed under state law with respect to the advertising or promotion,” the law provides, and only if the labeling requirements on cigarettes are obeyed.

In the case, the Court applied the pertinent Federal laws, in question, Title 15 U.S.C. § 1334(b), the “Federal Cigarette Labeling and Advertising Act” and Me. Rev. Stat. Ann., Tit. 5, § 207 (Supp. 2008), the “Maine Unfair Trade Practices Act” (MUTPA). It held that “the Labeling Act neither expressly nor impliedly pre-empts respondents’ fraud claim.” The landmark decision allows the lawsuit to proceed on the merits upon remand to the trial court below. The ruling strikes a blow against a broad effort by U.S. corporations to limit their exposure to lawsuits filed under federal law.

The court also dismissed Philip Morris’s argument that the Federal Trade Commission‘s mid-1960s endorsement of machine testing of cigarette tar and nicotine levels “should relieve the company of liability for alleged fraud.” In November, the FTC officially dropped its endorsement of the Cambridge Filter Method, saying it is flawed because “the machine doesn’t take into account the way smokers adjust their behavior.”

The Supreme Court in a June ruling, said 8 to 1 that “a case filed in a state court alleging a defective catheter was pre-empted by a federal statue providing regulation of medical devices to the U.S. Food and Drug Administration.” The court also ruled in 1992 in ‘Cipollone v. Liggett Group, Inc.’ that “the phrase ‘based on smoking and health’ in the Labeling Act did not apply to pre-empt suits under state laws based on the ‘general duty’ not to make fraudulent statements.”

Justice Clarence Thomas said that “some kinds of fraud claims against cigarette makers may go forward, just not those concerning smoking and health. Thus, if cigarette manufacturers were to falsely advertise their products as ‘American-made’ or ‘the official cigarette of Major League Baseball,’ state-law claims arising from that wrongful behavior would not be pre-empted. Forbidding lawsuits based on health claims, would not mean consumers lack protection, as tobacco marketing is subject to regulatory oversight.”

Altria’s associate general counsel, Murray Garnick, in a statement, said “we continue to view these cases as manageable, and the company will assert many of the strong defenses used successfully in the past to defend against this very type of case.”

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Drone delivers transfusion blood intact

Thursday, December 8, 2016

In findings announced yesterday, scientists from Johns Hopkins University took ordinary commercial drones, swapped out their cameras for coolers and packed them with human plasma, platelets and blood cells. The drones were found to deliver their cargo in usable condition after flights lasting almost half an hour, at distances of up to 12 miles.

“For rural areas that lack access to nearby clinics, or that may lack the infrastructure for collecting blood products or transporting them on their own, drones can provide that access,” says pathologist and lead author of the paper Dr. Timothy Amukele.

Although earlier studies have confirmed that drone flights do not affect the useful properties or microbe populations of human blood products, those experiments were performed on small, vial-sized samples. Here, the drones carried much larger quantities of blood, in the proportions and packaging that doctors and medical technicians would actually use on patients, with units purchased directly from the American Red Cross. Unlike Rwanda’s medical delivery drones, which were custom-made for blood product delivery by Zipline, these experiments were completed with regular, commercially available S900-model machines with minimal modification.

Post-flight, the samples were tested for cell rupture, changes in pH, air bubbles and other damage that might indicate that the packages had thawed out or otherwise become unsuitable for use in transfusions. The samples were found to have arrived intact.

Although the test was performed in an unpopulated area, it is speculated that drones might be useful not only for delivery of blood products to rural medical facilities but also for distributing blood resources through urban areas. John’s Hopkins pathologist and research team leader Dr. Timothy Armukele speculates that emergency medical teams may one day be able to transfuse patients on the spot by calling for a drone to bring blood of the appropriate type.

The details of the experiment have been published in the latest issue of Transfusion.