Salaries on the rise at U.S. dealerships

Salaries-300Salaries and productivity climbed throughout new car dealerships in the U.S., last year, according to the latest Dealership Workforce Study from the National Automobile Dealers Association (NADA).

The fourth annual study is a goldmine of dealership data on compensation, benefits, retention and turnover trends, among them:

  • On average, dealership employees earned nearly 29 per cent more than employees in the private sector workforce.
  • The median weekly income for all new car dealership employees increased 5.1 per cent to $US 1,026 in 2014.
  • Highest turnover, and the only key position to exceed the national average of 44 per cent, was among car sales consultants, with a reported turnover rate of 72 per cent. That number climbs to 90 per cent among female consultants. Truck sales consultant turnover was 17 per cent.
  • Millennials made up 48 per cent of all dealership new hires and 31 per cent of the total dealership workforce.

“The bottom line is that new car dealerships offer well-paying jobs with benefits,” said NADA Chief Economist Steven Szakaly.

He attributes the high turnover rate of sales consultants to two factors: “First, this represents many entry-level workers who decided to try sales but then realized they did not like it,” he said. “Second, automotive retailing is going through major industry changes, which is putting pressure on sales staff earnings.”

The 2015 study analyzed 290,000 payroll records. Participants — NADA and ATD members — supplied information on sales volume, work schedules and employee benefits, and in return received a dealership-specific custom report and a comprehensive trends report.

The trends report, which also provides comparisons by luxury and non-luxury dealer franchises, is available for purchase from NADA.

Related Articles
Share via
Copy link