Manheim, a wholly owned subsidiary of Cox Enterprises, is the world’s leading provider of automotive remarketing services, handling 10 million vehicles per year and operating 144 locations and 10 service centers worldwide. Within one of Manheim’s primary businesses, its auto auctions, turnover was as high as 86 percent in some departments and more than 40 percent overall. The jobs in which turnover was especially troubling included detailers and drivers, which represent nearly a third of Manheim’s total workforce. As about one in three newly hired employees left within 90 days and a full 65 percent left within their first year of employment, Manheim realized that the high turnover was linked to its approach to hiring for its high-volume positions.
Manheim partnered with DDI to conduct job analyses and create Success ProfilesSM for eight high-volume positions. DDI also worked with Manheim to create a set of actionable tools to guide location managers through the hiring process. Given that the jobs location managers were hiring for were hourly, non-professional positions, the tools needed to strike a balance between structure and informality. The four tools created included a prescreening tool, an interview guide, a document the manager could use to practice rating candidate responses, and a realistic job preview.
The competency models, the training program, and the hiring tools are making it possible for Manheim’s managers to make better hiring decisions across all locations. What’s more, by having a more standardized process, Manheim has improved the legal defensibility of its hiring decisions.
In the first year after revising its hiring approach and providing training and tools to its location managers, Manheim realized a 13 percent reduction in turnover, equating to an estimated cost savings of $7.8 million. Between 2003 and 2006, turnover dropped by one-fourth—more than 10 percentage points—producing an estimated cost savings of $16 million.