The issue of hiring and retention has been on the minds of automotive retailers for years. But younger generations are now starting to show a greater interest in dealership jobs, according to the Cox Automotive 2019 Dealership Staffing Study.
The current situation, based on the report, is that around 20 per cent of all dealership employees are likely to search for a new job within the next six months. This is because a third of non-management employees either feel neutral or unsatisfied with their current employment. Furthermore, the Cox Automotive 2019 Car Buyer Journey Study suggests that dealerships are looking at an estimated 80 per cent turnover rate when it comes to their sales staff.
“The good news is that dealerships have an opportunity to reverse this trend,” said Isabelle Helms, Vice President, Research and Market Intelligence, Cox Automotive. “A new generation is entering the workforce and bringing with them a renewed interest in working at a dealership. To attract and retain employees in this highly competitive job market, dealerships should understand which benefits and cultural attributes employees value most and take action to effect positive changes within their store.”
More than 30 per cent of Generation Z and young millennials are interested in working for a dealership — and that percentage increases when other roles (as opposed to just sales positions) are presented to them. Their interest is nearly 10 percentage points higher than that of older millennials and Generation X.
But dealers will need to address a few issues before they can take advantage of the Gen Z and millennial interest, some of which, according to Cox Automotive, include:
- Engagement: dealership employee engagement is fading, as a third of employees are not engaged or excited about their jobs;
- Improvement and growth: only 50 per cent of non-management employees say their manager meets with them regularly to set goals that help them improve their capabilities and grow their skills.
- Work-life balance: the absence of work/life balance can result a higher staff turnover rate, with 40 per cent of former dealership staff having left their jobs due to this issue.
- New technology: 39 per cent of dealership employees believe their dealership is using the latest technology.
“Dealers can’t afford to take their eyes off their employees’ needs,” said Bob Kostkan, senior director with Cox Automotive University. “With record high dealership turnover and a low unemployment rate of 3.7 per cent as of June 2019 (in the U.S.), it’s critical that dealership leaders improve productivity while also enhancing employee engagement and retention.”
He adds that these issues are both controllable and must be addressed to maximize customer experience and profitability.
Dealers need to empower and engage staff while also investing in modern and user-friendly technology that will help boost productivity and efficiency for employees. Furthermore, they must also implement training opportunities, which leads to happier workers and a more optimized workflow, according to Cox Automotive.
