In 2016, the turnover at dealerships in the U.S. was 43%. If you calculate the average number of employees at every dealership, that equals more than 23 team members giving notice in one year alone! That’s a lot of churn. With figures like that, if you don’t think your dealership has a turnover problem, you might want to think again. So what’s the big deal? Take a look at the root causes of employee turnover you may have overlooked:
A Lack of Diversity
There’s a general need for change in the auto sales industry. A quick look at the numbers shows that only 19% of traditional new-car dealership employees are women. And, while dealerships are aiming to bring in more millennials to the workforce, the ability to keep this group around long-term is failing. Broadening your search to be more inclusive, working with more flexible hours, and trying creative compensation structures are a few ways to start the process of change.
Hiring to Fill Niche Technology Needs
If your technology is out-of-date, hard to use, or even just oddly specific, you may be limiting your pool of candidates. Employees are already required to learn and adapt to everyday changes to industry regulations. If you refuse to consider a candidate based on their experience with the technology you currently have (when you know it will likely change), you aren’t planning for the future.
Failing to Compete with the Competition
Demand for qualified employees is growing. This is good news for anyone working in the industry, but it does mean managers and Dealer Principal Owners need to build a solid strategy for attracting top talent. As the market for employees becomes more and more competitive, your staff has the flexibility to move on to competitors who may offer better compensation, more flexible hours, better paid time off policies, or company perks and benefits. A similar story played out in the technology industry in the last ten years, and managers were forced to get creative when it came to attracting talent.
Poor, or Inadequate, Training
No one enjoys feeling lost on the job. Employees today realize that every position they fill is a stepping-stone on a career path that needs to offer skill development and training to promote growth and success in their future. Does your dealership offer e-learning or a career trajectory plan aimed at improving their development? Is there a position in their future available for promotion or advancement? Your employees have plans for their own future—do they include you?
Highly Selective Employees
Dealerships already must compete to overcome a negative reputation. Today’s employees aren’t afraid of hard work, but they’re also more agile and tech-savvy. They know how to network and will use their skills to consider better options, whether a position is in a brand new industry, or not. What does your opportunity offer that they can’t find elsewhere?
It’s not too late to uncover these often overlooked issues to retention. You can develop strong employee relationships and attract quality team players. Discover more ways to attract and retain talent in our new eBook: 8 Ways to Reduce Turnover & Improve Retention: A Dealer Principal’s Guide to Hiring and Retaining Talent.