Honda store maintains productivity — and fun, family-style culture

DCH Kay Honda in Eatontown, N.J., is no stranger to accolades for its employee-friendly environment.

It was among the top 20 dealerships in the Automotive News Best Dealerships To Work For ranking back in 2019, before the coronavirus pandemic hit. And it was in the top five last year as it worked to protect employees from the worst of the health crisis.

The dealership's rise to the top of the charts this year in the medium category — and fifth overall — comes from a thoughtful combination of its core philosophy pre-COVID-19 and the lessons it has learned over the past 19 months.

That includes a greater focus on flexibility. The store was able to develop a work-at-home model as it navigated lockdowns, social distancing and, more recently, a careful return to mostly in-store work for its 74 employees.

DCH Kay Honda is now using a hybrid model, offering work-from-home days on request with flexible hours. That allows employees to telecommute if they need to take care of family or other personal matters and return to the office for most of the week.

"As far as the flexibility in the schedule, a lot of that did come out of COVID," said General Manager Mark Clifton. "We found that people can still be productive even if they are not in the dealership every single day. I personally don't care as long as we're getting the job done."Last year, the dealership sold 1,935 new cars and 1,481 used vehicles.

One advantage of the flexible schedule is that employees who otherwise might have to take a PTO day because they can't go into the store can ask to work at home and save those days for an actual vacation.

"If you don't want to use your PTO because you have vacation coming up, you can work from home," Clifton said. "It happens all the time: 'I need this day off or let me work from home.' " The hybrid option also helps the dealership recruit talent in a tight labor market, he said, since flexible schedules are in high demand.

DCH Kay Honda is one of 10 Lithia stores on the Best Dealerships To Work For list this year.

While the dealership is not currently hiring for strictly work-at-home positions, it is looking into the possibility and does have one back-office employee who has been able to remain at home after the coronavirus restrictions were lifted, Clifton said.

Michael Lyttle, new-car sales director, said a highly professional work environment plus a caring attitude toward staff are among the top reasons he enjoys working there.

"I feel that I work with professionals that I can learn from," Lyttle said.

"Our team is very supportive; we motivate each other to continuously grow and constantly improve. DCH Kay Honda has made me feel that I am more than just an employee; I feel we are all like a big family."

Lyttle has been at the store for just more than eight years.

Another area of flexibility at the dealership, especially among new recruits, is the pay plan. DCH Kay Honda works with Lithia on pay plan options but ultimately decides what's right for each individual. For a new hire who has never worked on commission, that could include a guaranteed pay plan until the person is ready to add commission to the mix.

"The last thing I want is someone joining our team being concerned about compensation. They should be focused on training and earning customers for life," Clifton said.

Through Lithia, DCH Kay Honda offers generous benefits to employees, including multiple medical plan options from the first day of hire.

It also offers cash incentives for staying up to date on preventative care, free telemedicine and free diabetes management, according to a survey submitted to Automotive News.

Performance bonuses, retirement plans, employee stock, gym reimbursement, free snacks, tuition reimbursement, mentoring, wellness programs, paid training including National Automobile Dealers Association programs and paid time for community service are among the concrete perks that the dealership offers.

But the intangibles are also important, such as creating an environment where workers are happy and motivated and can see career options well into the future, Clifton said.

That includes supporting an employee who sees a key career opportunity at another Lithia store. While it may be a loss to DCH Kay Honda, it's a win for that staff member and for Lithia overall.

That caring attitude shows up in employee surveys. It also shows up in tenure and reduced turnover.

Clifton has been at the dealership for 22 years. General Sales Manager Ruben Arcila has 16 years on the job, and a technician has been at the store since 1984 — when Clifton was in high school.

"We survey our employees and, believe it or not, compensation is never the No. 1 thing," Clifton said. "For employee satisfaction, it's the intangibles. We do luncheons quite frequently, we honor the employee of the month, we'll get a cake for birthdays." The employee of the month gets a dedicated parking space.

In addition to the yearly company barbecue for everyone, there are smaller group activities to recognize high performers. For example, Clifton rented a luxury box at a New Jersey Devils hockey game for the parts department after record sales in the first quarter.

For employees who have to work on Saturdays, Clifton tries to make it interesting and fun.

"I feel like if you just throw out money, that's kind of lost its luster. So we'll do silly stuff, like pick from a hat and you'll have the chance at a free tank of gas or eight hours of PTO. These little things that don't cost a lot go a long way," he said.

Store management also promotes an environment of success, setting sales goals that push employees toward greater achievement without stressing them out.

Employees are generally happier when they are hitting sales targets, earning bonuses and generating high customer satisfaction, Clifton said.

"If someone comes in with a bad mood, that rubs off on people," he said. "You can see it on their face. And if I can see it, the customer can see it. It's not good for the employee, for fellow employees, and it's not good for the customer."