As the year winds down one task is taking center stage at most dealerships: performance reviews. ‘Tis the season to evaluate team members, identify areas for improvement, and set the stage for success in the year ahead.
However, many dealers struggle to integrate a structured, regular process for it. With so much focus on sales, service, and current inventory challenges, feedback often gets sidelined or becomes a once-a-year box-ticking exercise. But, what if performance feedback could be the key to setting and raising expectations, improving the customer experience, and strengthening relationships with your employees? What if you moved past the end-of-year or first-quarter reviews and went to a perpetual feedback process? I find performance feedback to be one of the most underutilized tools in the leadership toolbox. Most people are uncomfortable providing feedback and tend to look for ways to avoid it.
Here are insights to help you create a performance feedback process that empowers your team and drives growth:
1. Be Ready to Receive Feedback Yourself
To give feedback you have to be able to receive feedback. You need to be a product of the product. As a leader, you set the tone for the entire organization. If employees see you’re open to receiving feedback, they’ll be more willing to engage in meaningful conversations. It’s essential to practice what you preach. Show your team that feedback is a two-way street—accept their perspectives, listen to their concerns, and respond constructively. This approach will build trust and foster a more collaborative environment, making your team more open to receiving feedback themselves.
2. Schedule Regular, Structured Feedback Sessions
Feedback shouldn’t be limited to an annual performance review. Monthly or quarterly check-ins allow you to address issues as they arise and keep performance expectations clear and aligned with the dealership’s goals. Regular sessions create consistency, helping employees see feedback as a constructive part of their growth, not a reactive or punitive process. When we wait until the end of year or first quarter review it is likely harder to change the behavior you intend to address.
3. Use Specific, Measurable Goals to Set Clear Expectations
For feedback to be effective, it should be based on clear, measurable goals. When employees understand what’s expected of them and how their performance is evaluated, it reduces confusion and anxiety. Outline specific objectives—such as improving customer satisfaction scores or departmental KPI —and discuss how each team member’s role impacts those goals.
For example, obsolete parts. Instead of focusing just on the number, discuss their actions that contribute to reducing it. How often are they doing their parts returns to maximize those opportunities? Are they contacting customers whose parts fit their equipment and trying to sell it to them at a discount to move it? Or see if other branches in the company have a sales history on those older parts or customers who could use them and transfer the parts to that location? When employees can see their progress through measurable behaviors, it becomes easier to align their actions with broader organizational goals.
4. Focus on Behaviors, Not the Person
When giving feedback, focus on behaviors rather than making statements that can appear attacking. Statements that start with “You” often feel like a personal attack and walls go up. Focusing on the behaviors and outcomes makes you more likely to be heard. Behavioral-based `feedback helps employees understand what actions need to change, making it easier for them to focus on actual improvements. I find that when I focus on the outcomes and not the person I get much more engagement and a higher level of improvement. It helps to visualize the behavior and what it would look like if the expectations were met.
Instead of saying, 'You’re always missing follow-up calls with customers,' focus on the behavior and desired outcome: 'I noticed that some follow-up calls with customers haven’t been made within the 4-hour goal we’ve set. Making those calls on time is important to build trust and ensure we meet their needs. How can we adjust your schedule or process to help meet this expectation?' This approach emphasizes the action and its impact, rather than making it personal, encouraging collaboration and problem-solving.
5. Balance Positive and Constructive Feedback
When we think of performance feedback we naturally migrate to negative behaviors. However, effective feedback includes recognition of what employees are doing well and affirming that behavior. Highlighting successes helps reinforce positive behaviors and gives employees a sense of accomplishment, which is essential for motivation. Balance this with constructive feedback that encourages growth and improvement. This approach makes feedback feel balanced, helping employees feel supported rather than criticized. One caution is not to get caught in the sandwich approach, where you start with positive feedback, then touch on the challenging feedback, and then finish with positive feedback. That often leaves the employee feeling more confused about what you are trying to accomplish.
6. Provide Actionable Takeaways
Feedback is most effective when it includes actionable steps for improvement. If an employee is struggling with customer service, for example, offer specific strategies like scripting responses to common customer questions or shadowing a high-performing peer. Actionable feedback gives employees a roadmap for improvement, which enhances their confidence and competence. If the challenge is technical, find a training path; if it is more behavior, find a person to partner them with. As the leader you are the one who is responsible for building a bridge to an action plan, they are responsible for accomplishing it.
7. Follow Up
Feedback isn’t a one-and-done activity; it’s a continuous cycle. Make sure to follow up after each feedback session to see how employees are progressing with their goals. Regular follow-ups show your team that you’re invested in their development and make it easier to address ongoing challenges before they become major issues. One way to do this in a challenging situation is to ask when they would like you to follow up with them. This put it in their control. Put the date on both your calendars right then and there so both of you have it documented and time reserved.
8. Documentation and Acknowledgement
A well-structured feedback process benefits from tracking and documentation. There are some simple performance tracking tools to keep records of feedback conversations, goals, and outcomes. This will not only help you stay organized but also provide a clear picture of employee growth over time, which is essential for long-term development. If you do not have these tools, a simple email with what you are working to improve, what the action steps are, and what each person is responsible for accomplishing to improve the performance.
9. Make Feedback Part of the Culture
Finally, for feedback to be truly impactful, it must be a part of your dealership’s culture. Encourage managers and employees alike to view feedback as an opportunity to grow rather than as a chore. Create a positive feedback culture where everyone, from technicians in the service department, parts team, and sales personnel sees feedback as a tool for continuous improvement.
Performance feedback season may seem daunting as we approach it, but with the right approach, it can become one of the most rewarding times of the year. For equipment dealers, making feedback a regular, consistent process can elevate employee satisfaction, improve customer relations, and drive better business outcomes. Embrace it as an opportunity to grow your employees, raise your expectations, and make your dealership an even better place to work.
However, you can define the expectation and apply a rating to those behaviors as well. Using items such as customer experience, people development, and departmental collaboration, are all items that you can establish a measurement around.
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