In-house referrals keep turnover down at Georgia Mini dealership

When it comes to sourcing his most important asset, John Secondo looks within.

The general manager of Mall of Georgia Mini in Buford, Ga., relies on employee referrals as his primary recruitment strategy.

"This has worked out much better than using third-party recruitment sites," Secondo said. "We have much lower turnover by hiring people we actually know, rather than strangers."

Secondo said being general manager of a dealership is like being a football coach.

"You need to be looking for five-star players every single day," he said. "And when you're looking for five-star players, the best place to start is by talking to other five-star players you know."

Employee referrals have proved effective for the Hendrick Automotive Group dealership, which sold 1,872 new and used vehicles last year.

"If our employees are willing to say, 'This guy or gal could be a great candidate,' we want an opportunity to try and talk with them," Secondo said. "You've got to constantly look for ways to be at the top and the best way is to start with your people."

Mall of Georgia Mini pays employees $1,000 for every referred hire who stays with the company for at least six months. More than 80 percent of the store's 53 employees were referred by other employees.

Meanwhile, work force turnover is less than 20 percent.

"We haven't had any technicians leave the dealership in over two years," Secondo said. "That's an insane stat because technicians are extremely, extremely hard to keep."

Secondo said he hires 90 percent of referrals.

"We save hours in interviews and due diligence," he said.

The referral program has helped turn the entire work force into recruiters and has created a "culture of accountability," Secondo said.

Employees who have been referred are likely to perform better because they know a friend or family member at the dealership put their reputation on the line to vouch for them.

Meanwhile, the employee who did the referring is also motivated to do well.

"You never want to recruit someone and then get beat by them," Secondo said. "So it creates a competitive culture in a positive way."

Referred employees also hit the ground running because they have a mentor in the dealership who can show them the ropes and make them comfortable in a new environment.

"It gives you a sense of confidence knowing someone's going to kind of take you under their wing, rather than just walking into a totally new culture and environment," Secondo said.

Secondo credits reduced employee turnover to helping grow the store's profitability and throughput every year.

Having employees with tenure also builds a strong workplace culture that Secondo said helped the store win a spot on Automotive News' Best Dealerships To Work For list in two of the past three years.

Mall of Georgia Mini's recruitment strategy has gotten the attention of general managers at other Hendrick group stores.

"The GMs ask me, 'How do you get so many good people?' " Secondo said. "And I tell them what we do."