Not much happens at Penske Automotive Group that Chairman Roger Penske does not know about, including why each and every employee quits.
"In our regional monthly review meetings with business managers and Roger, we dissect by person why someone left: by market, by store, by brand, by region," said Bud Denker, Penske's executive vice president of human resources, marketing and Team Penske. "From an 11-year employee to a two-week employee."
The dealership group asks each employee who quits, why. Given that about 150 to 200 employees across the company quit each month, those can be long meetings. But the process, which started two years ago, is worth it, Penske leaders say.
"If you want to make sure people are staying with you, you learn about why people leave," said Paul Neumann, Penske's vice president for human resources in the western region in Scottsdale, Ariz.
Those lessons inspired Penske Automotive to tweak its hiring processes over the past 18 months to attract better people who want to stay. The changes — adding automation, phone screening, a third-party email reference check and hiring four recruiters — cost about $1 million. And they are reducing turnover.
"We're slowing down the process of talent acquisition and we think we're getting better people into the business and that's made a big difference," Roger Penske told Automotive News.