There is no doubt that the effectiveness of your dealership's people is the difference between outstanding and average results, which is even more pertinent in challenging trading conditions.
Understanding the key influences that differentiate high performers is difficult but critical in unlocking the full potential of your workforce.
The BDO Human Capital (HC) Index
BDO have developed a framework to assist in understanding the impact your workforce is having on achieving your dealerships strategic ambitions.
Unlike more traditional disciplines, human resource (HR) professionals have to-date struggled to develop a method of valuing and assessing the impact its workforce can have on the success of a dealership.
In conjunction with our clients, BDO have developed a methodology that moves us closer to understanding the critical levers that influence a dealerships performance through its people.
The BDO Human Capital (HC) Index looks to combine critical workforce elements such as availability, capability and engagement, as well as labour cost measures, to determine which of these elements can lead to more sustained dealership performance and improvements in workforce productivity.
How can the BDO HC Index assist your dealership?
The BDO HC Index will allow leaders to focus attention on areas that provide the highest return on investment.
On the 10-point BDO HC Index scale, higher performing dealerships tend to have a score of 6 or above, whereas results below 4 indicate a below average performance.
What appears to have the greatest impact on performance for higher performing dealerships is their ability to retain key elements of their workforce. Once we accept that the largest single driver of overall performance is an organisations people, it comes as no surprise that there is a positive linear correlation between the BDO HC Index result and the net profit to sales achieved for dealerships reviewed.
Whilst the BDO HC Index can draw attention to the critical workforce dynamics of a dealership, it is heavily influenced by the industry and the organisational focus. A more dynamic industry, such as automotive retail, will need to pay close attention to its workforce capability and ensure emerging skillsets are identified and addressed early and regularly.
For further information on the BDO Human Capital Index, please contact Jenine Waters, Mark Ward or Randall Bryson.