PEOPLE STRATEGY |

THE HUMAN CAPITAL ADVANTAGE

Max LowenbaumVP of Sales | Hireology

PEOPLE STRATEGY |

3,000% Growth

20% Market Share

12 Million Cars Sold

PEOPLE STRATEGY |

THE HUMAN CAPITAL ADVANTAGE

PEOPLE STRATEGY |

PROCESS EFFICIENCY

PERFORMANCE VELOCITYACCESS TO TALENT

PEOPLE STRATEGY |

ACCESS TO TALENT

PEOPLE STRATEGY |

Unemployment Over Time

BUREAU OF LABOR STATISTICS, AUGUST 2019

6

7

2010 2012 2014 20165

5.5

6.5

2018

7.5

8

8.5

PEOPLE STRATEGY |

Today’s Applicant Economy

7.5 millionUnfilled jobs today

5.8 millionAmericans seeking work

BUREAU OF LABOR STATISTICS, AUGUST 2019

PEOPLE STRATEGY |

Entry-Level Labor Pool (In Thousands)

20K

10K

ENTRY LEVEL LABOR FORCE Age: 16-24 Years

1992 2002 2012 2022

21,617

22,366

-4.8%

21,285

18,462

-13.3%

BUREAU OF LABOR STATISTICS, AUGUST 2019

PEOPLE STRATEGY |

Technician Shortage

76,000Technicians needed from 2016 - 2026

37,000Certified technician shortage given entry labor pool and retirement plans

NADA ECONOMICS REPORT, 2018

PEOPLE STRATEGY |

Only

1.25%of today’s applicant pool would consider working at a retail dealership.

FIELDS OF WORK THAT

JOB SEEKERS ARE CONSIDERING:

Retail/Wholesale 27%

Hospitality 18%

Finance, Insurance or Real Estate 17%

Medical/Dental 16%

Education 16%

Manufacturing 14%

Construction 9%

Public Service 7%

Utilities 7%

Legal 5%

Agriculture, Forestry, Fishing 5%

Automotive (4 million) 5%

COX AUTOMOTIVE JOBS REPORT, 2017

PEOPLE STRATEGY |

CONTENT TECHNOLOGY

ACCESS TO TALENT =

+

PEOPLE STRATEGY |

PEOPLE STRATEGY |

APPLICANTS LOOK FOR:

Pay Stability and Earning Potential

Career Pathing

Work-life Balance

!

PEOPLE STRATEGY |

THE WAY WE RETAIL CARS TODAY

VEHICLE

THIRD PARTIESTARGETED ADS

BUDGET

DEALERSITE

DEALERSHIP CRM

SEARCH

PEOPLE STRATEGY |

JOB BOARDS

THE WAY WE RETAIL JOBS MUST CHANGEEmployers Must Retail Jobs Digitally And Direct-to-consumer

BUDGETOPEN POSITION

CAREER SITE

SEARCH

TARGETED ADS

CANDIDATENETWORK

RECRUITMENT CRM

PEOPLE STRATEGY |

Mobile Friendly

Shopper Expectations

80%of leads originate on a mobile device.

JD POWER MOBILE REPORT, 2018

PEOPLE STRATEGY |

Mobile Friendly

Non-Mobile Optimized

Job Seeker Expectations

60%of Hireology job descriptions are viewed on a mobile device.

HIREOLOGY DATA, 2019

PEOPLE STRATEGY |

Mobile Friendly

Non-Mobile Optimized

Job Seeker Expectations

30%

drop off without a mobile-friendly

career site or application process.

HIREOLOGY DATA, 2019

PEOPLE STRATEGY |

APPLICANT SOURCING EFFICIENCY

APPLICANT CHANNEL APPLICANTS NEEDED PER HIRE

Referrals 4

Career Site 10

Google 21

Paid Job Boards 42

Organic Job Boards 126

PEOPLE STRATEGY |

Career Sites Drive

4%

of applicants

30%

of hires

HIREOLOGY DATA, 2019

PEOPLE STRATEGY |

RECRUITMENT MARKETING COSTS BY CHANNEL

COST PER APPLICANT

COST PER HIRE

REFERRALS

$6

$21

4 APP: HIRE

CAREER SITE

$5

$46

10 APP: HIRE

ORGANIC JOB BOARDS

$1

$87

126 APP: HIRE

GOOGLE

$12

$251

21 APP: HIRE

SPONSORED JOB BOARDS

$75

$2,681

42 APP: HIRE

HIREOLOGY & NADA RESEARCH: SAVING THE LOST APPLICANT, 2019

PEOPLE STRATEGY |

PROCESS EFFICIENCY

PEOPLE STRATEGY |

PROCESS ACCOUNTABILITY

PROCESS EFFICIENCY =

+

PEOPLE STRATEGY |

24 Hours or less is the average time it takes

to respond to a consumer lead.

5 Days or more is the average time it takes to

respond to an applicant.

VS.

DIGITAL AIR STRIKE, 2018 | HIREOLOGY DATA, 2019

PEOPLE STRATEGY |

Recruiting is a Sales and Marketing Process

INTEGRATE

HIRE

ATTRACT

KPIs

Build Your Employment BrandCareer Site | Job Boards | Targeted Ads

Onboard with ConfidenceOnboarding | Payroll | HRIS | Compliance

Hire Your Best TeamPrescreen Surveys | Interview Guides | Candidate Verifications

PEOPLE STRATEGY |

of hires found their next roles within two weeks.

33%

HIREOLOGY DATA, 2019

PEOPLE STRATEGY |

of jobseekers lose interest if they don’t hear back a week after their interview.

70%

HIREOLOGY DATA, 2019

PEOPLE STRATEGY |

21 DAYS

HIREOLOGY & NADA RESEARCH: SAVING THE LOST APPLICANT, 2019

PEOPLE STRATEGY |

LOST APPLICANTS

PEOPLE STRATEGY |

2 MillionLost Applicants in Automotive Retail

HIREOLOGY & NADA RESEARCH: SAVING THE LOST APPLICANT, 2019

PEOPLE STRATEGY |

PERFORMANCE VELOCITY

PEOPLE STRATEGY |

PERFORMANCE VELOCITY =

CONNECTIVITY INCENTIVES

+

PEOPLE STRATEGY |

CONNECTIVITY

COMPLIANCE TOOLS

ONBOARDING

APPLICANTS

DMS

WEBSITE

MANAGERS

PAYROLL

JOBS

PEOPLE STRATEGY |

CONNECTIVITY

COMPLIANCE TOOLS

ONBOARDINGAPPLICANTS

DMSWEBSITE

MANAGERS

PAYROLL

JOBS

PEOPLE STRATEGY |

69%of employees are more likely to stay for

3+ years with a positive onboarding experience.

Onboarding a new

employee is like delivering a

NEW VEHICLE

CLICK BOARDING, 2019

PEOPLE STRATEGY |

PEOPLE STRATEGY |

INCENTIVES

PEOPLE STRATEGY |

FACT:It is difficult to affect gross in the current business environment.

INCENTIVE:The most common element in pay plans is supposed to help hold gross on a vehicle.

REALITY:Sales associates become discouraged knowing that the primary component of their pay is out of their control.

PEOPLE STRATEGY |

85%

of all pay plans pay on front-end gross

COMPTRACKR INTERNAL DATA, 2019

PEOPLE STRATEGY |

Flat Commission Front PVR Bonus

Base Salary

Substitutes for Percent of Front Gross

PEOPLE STRATEGY |

ACCESS TO TALENT

PROCESS EFFICIENCY

PERFORMANCE VELOCITY

STRONGCULTURE

CUSTOMER SATISFACTION

HIGHERPRODUCTIVITY

GREATERLOYALTY

The Human Capital Advantage

PEOPLE STRATEGY |

THE HUMAN CAPITAL ADVANTAGE

Thank You.