Published: June 2010. Southgate Consulting

Automotive Recruitment Trends 2010

The Automotive Recruitment market has been exciting, challenging, unpredictable and frustrating in equal amounts over the last 18 months! Never have we seen so much rapid downsizing, both within National Sales Companies and major Retail Plc’s leading to widespread cuts across all areas of the business, particularly affecting those middle-senior management roles which up until now have been very secure. In the main the cuts have been totally financially driven, and unfortunately in some cases with scant regard for the lost of talent, which is extremely difficult to replace.

The cost savings for Manufacturer/Importer Head Office and Retail Outlets has obviously been substantial, and together with the support of schemes such as the scrappage scheme in 2009, results better than expected.

Invariably we have seen companies trying to internally promote, as there have been recruitment freezes imposed upon them for an indefinite period, and the only available vacancies have therefore been at a more junior level. It might therefore be very easy to assume when a vacancy becomes available and is advertised or assigned to a recruitment consultancy, there will be a high volume of suitable responses quickly available. Unfortunately, this is not the case, as many people who are currently in work and have been with an employer for a reasonable period of time decide to, quite understandably think, that this is not the right time to risk moving.

Additionally, it has become increasingly obvious that employers are very nervous to take on “over qualified” applicants for roles that are available. There may be a number of reasons for this, usually surrounding the nervousness of good candidates searching again when the market improves, an inability to comprehend how people would slot into a lower level position and be happy there, and also some disbelief about candidates ability to take a considerable drop in salary. From an employer point of view I can see that this could be concerning, but having spoken to dozens of people across the country and internationally who have exceptionally good skills and abilities, I still maintain this pool of talent can be successfully used again within the industry.

For many, employment has been found under the heading of “consultancy” which can be sub-contracted to clients and this is certainly a growth area which exposes a potential employer to a minimal risk. I believe we will see this flexible pool for expertise being utilised more and more in the future, where senior and middle level managers may become used to working on behalf of two/three clients or, indeed, have two/three different consultancy roles for the foreseeable future.

With regards to salaries, it is true to state that they have really become static over the last 18 months and have perhaps fallen in some cases, particularly where there is a widespread available group of people for work. However, in particular areas of specialist skill perhaps like Product Marketing, Aftersales, Accounting, and even some specialist areas of Sales, candidates are still able to command slight increases on last year’s salary. Aftersales is particularly an important area of recruitment and growth at present as more and more businesses realise the importance of profitability and customer retention from this area.

For new businesses entering the market at present, there may be a slight nervousness of job security for those currently in secure employment. As a result it is important that potential employers understand the concern of some individuals giving up four/five years experience /security with one employer to move to a new position. Bizarrely, we are finding the recruitment market is either requiring ridiculously quick shortlisting (good for candidates who are immediately available), or the process drags on for months and months with minimum communication from some clients. Both of these areas are as damaging as each other, the first in terms of making “knee jerk reactions”, and the latter leaves a very poor experience for both applicants and any recruitment company involved in the process. It is therefore essential that some semblance of reasonableness and normality is always attached to the recruitment process in terms of timing, candidate matching against a job brief, salary expectations and managing future career ambitions.

Positively, however, in the last two/three months we have seen a dramatic rise in genuine career opportunities, both in the UK and Overseas. Whether this continues for the remainder of the year remains to be seen, but it is encouraging to note that quality candidates can still demand the very best salaries and career advancement.

Summary:

• Employers promoting internally where possible.
• Good candidates in salary bands £35-70K still in demand, providing they fit the cultural and career brief 100%.
• Senior Management/Executive roles in Retail and Manufacturer/Importer and Retail Groups limited for the foreseeable future.
• Some very good skills and experience available with those who, through no fault of their own, are redundant.
• Some Employer recruitment processes are not as well organized as prior to the recession, leaving candidates dissatisfied.
• More candidates considering leaving the industry and/or finding work Overseas.
• “Over qualificationism” objections plentiful.
• Ageism is not as problematic as in other industry sectors.
• Generally no change in salary packages from 2009.

Published: Thomas International | October 2008. Southgate Consulting case study

Southgate Consulting is the UK's leading automotive recruitment consultancy, specialising in executive search and selection for the motor industry.

They are not a high volume speculative recruitment company but work with manufacturers/importers, distributor groups and dealerships to develop long term working relationships. They also take this relationship driven approach with clients. Southgate Consulting differentiates itself through its ability to provide honest, unbiased and professional recruitment advice.

The Challenge
David Southgate, founder of Southgate Consulting, commented “We wanted to be able to go the extra mile for our clients by providing a service that no one else did. I am Thomas trained and wanted to use Thomas’ Personal Profile Analysis (PPA) because it’s an extremely useful tool to get a concise insight into a person’s behavioural characteristics at work.”

“For dealers, the key differentiator in the companies we deal with is their people. There can be over 200 dealers each selling the same product with the only difference being the quality of their people. This is where recruiting the right people is so vital. Manufacturers and importers have certain parameters within which they expect their retailers to operate. Recruiters are seen as a necessary evil and we want to dispel this by adding real value to their recruitment process and we do this with the use of profiling.”

The Result
Southgate Consulting uses Thomas’ PPA as part of its consultancy offering to clients. PPA assesses an individual’s behaviour in the work environment. It can answer questions such as – what are their strengths and limitations? Are they self starters? How do they communicate? What motivates them? PPA enables people to become more self aware, which in turn gives them the means to consolidate their working strengths and compensate for their limitations.

PPA is a series of 24 questions on a forced choice ‘first impressions’ basis, taking no longer than seven minutes to complete. The answers are charted on a graph under four headings of Dominance, Influence, Steadiness and Compliance.

David continued “We recently used PPA with a client who was looking at the internal development and assessment of their general managers. They wanted to look at what they had in terms of their people and any training needs they might have. We profiled each of them with PPA. Profiling gives us another perspective. In addition to the PPA report we looked at Strengths and Limitations to get a broader perspective.” This report provides a powerful and effective overview of an individual’s behavioural strengths and limitations.

“I like PPA because it’s very accurate, extremely easy to use and understand and, most importantly for our clients, cost effective. It is an extremely useful tool to use for a tight short list or when there is a difficult cultural fit. Different companies need different people. It’s not just about experience and skills it’s also about how they behave. Some of our clients are looking for High D High I type sales people (High D - driven, goal oriented, assertive, confident; High I – outgoing, persuasive, friendly and people oriented) whilst others need more High C and S types of behaviour (High S – steady, persistent, patient and a good listener; High C – systematic, methodical, detail focussed). For example, managers in a PLC need to be able to follow a system rather than make entrepreneurial decisions.”

“In addition to that client’s development we also used it to recruit for them. We benchmarked their existing people, looking specifically at their top performers. What behaviours did they bring to the work place that made them so successful? The client was really looking to recruit a better level of manager. If we could understand what made their good people good then we would be able to recruit more of them. PPA enabled us to understand the key behaviours they need to look for in prospective managers.”

Published: Motor Trader | 15.10.2007. Guest Comment by David Southgate, managing director, Southgate Consulting

Dealers must do homework to attract top grade recruits - Too many applicants are ill prepared and under informed before applying for jobs in the motor trade

The approach to staff selection and employee retention has undergone many changes in the last 22 years that I have been recruiting individuals into automotive environments but remains fundamentally the same. Generally for senior, middle and junior management levels the industry prefers to recruit from within and not risk taking individuals from other commercial environments. A good company with a strong reputation and desirable brand should still be able to attract a healthy shortlist, if individuals are approached in the right manner. But time and time again, companies and candidates applying for jobs make errors in
the selection process, leading to an unsatisfactory result and disappointment from both parties.

Advice for dealers
Dealerships should plan the approach to candidate selection, and the timescale of the selection process realistically. Management should take advice on market conditions, salaries and benefits, and invest in the right process for a specific requirement. They should also listen as well as ask questions in initial meetings, and balance work experience against assessment centre performance. Companies in the motor trade should avoid ringing numerous agencies and advertise all at the same time, and not expect a perfect response to an advertised assignment or agency instruction within days – careful selection takes 4-5 weeks minimum. They should not dictate rigid salary parameters based on out of date information, and should not advertise if it is more relevant to attract a limited number of specialist applicants. Interviews should be kept flexible in nature, and not too structured or rigid – these send out negative messages to good candidates. Finally, dealerships should not assume a good candidate at an assessment centre is necessarily going to be successful in the job – in fact they should not be surprised if some candidates are unwilling to attend assessment centres.

Advice for candidates
As far as candidates go, there are some important points they should consider when applying for jobs. Preparation is key – with a 100 per cent accurate CV. Always allow plenty of time to attend interviews and assessment centres. When you arrive for an interview be realistic – the worst thing you can do is get caught out bluffing! All applications should be taken very seriously and you should be focussing on exactly what you want in your next career move. Do not overestimate your abilities – know your strengths and weaknesses. Show flexibility in accommodating the client company meetings and interview dates. It is not advisable to play hard to get in the selection process – you will lose out in the long run. Finally, don’t be swayed by a prestigious brand or job title – make sure you closely examine the job content. In conclusion, recruitment is not a science, it is an art. Successful recruitment is often where the cultural fit is very strong between the company and the applicant, even if a few key skills still need to be learned.