When Someone is Poaching Your Managers
- DealersEdge
- Jun 26
- 2 min read
Poaching- aggressive recruitment of talent from a competitor.
Could this happen to you?
The rumor reached Clarence … the dealership GM… through the company grapevine.
"I heard Jim… the Service Manager… got a call from a dealership down the street.", was overheard in the breakroom.
Clarence immediately knew what was happening. Jim had become one of the dealership's most valuable leaders, driving strong profitability, technician productivity, and customer retention.
If a competitor was trying to poach Jim, then Clarence had a problem.
His first thought was to increase Jim's salary. But he quickly realized that simply paying more would be a temporary solution. Another dealer could always offer more.
Looking for a better answer, Clarence turned to the DealersEdge Guide to Pay for Performance Compensation Plans. One principle stood out:
Compensation should align employee success with dealership success.
Instead of offering a simple raise, Clarence redesigned Jim's compensation plan to include incentives tied to service profitability, customer retention, CSI performance, and technician productivity… along with an increased budget for his professional development.
A few days later, Clarence invited Jim to lunch.
"I heard you’ve had some calls from down the street."
"I have," Jim replied.
"What are you thinking?"
Jim's answer surprised him.
"It's not really about the money. But it is about knowing the dealership recognizes and values my contributions."
That conversation changed everything.
The new pay plan rewarded Jim's performance, but more importantly, it communicated that he was valued and that he was considered an important member of the management team.
A few weeks later, the poacher called again.
Jim decided to stay put.
Not because the other dealership couldn't offer more money, but because he felt appreciated and saw a future where he was.
The Takeaway
When key employees are being poached, the answer isn't always a bigger paycheck. Often, it's a better compensation strategy… one that rewards results, aligns goals, and demonstrates genuine appreciation.
The DealersEdge Guide to Pay for Performance Compensation Plans provides proven principles, examples, and planning tools to help dealerships create compensation plans that motivate performance and improve retention.
Learn more at:
NON MEMBERS https://www.dealersedge.com/payplans
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