During this time of economic recovery, many organizations are struggling with labor shortages and having difficulty finding workers. While these impacts may be short-lived in some industries, trends point toward recruiting becoming harder — not easier — in the long-term for auto dealerships.
The employee turnover rate in the automotive industry is 46%1, an all-time high. This level of turnover is unsustainable. Slow population growth and higher rates of retirement, among other factors, make ongoing and worsening labor shortages a very real possibility.
We examined the numbers, from car sales consultant turnover rates to demographic shifts and beyond. Here are the facts so you can see for yourself:
To prepare for these car dealership employee turnover challenges and mitigate their effects, dealers must focus on quality recruitment, talent development, and retention.
Gaining a competitive edge in a tight labor market is all about optimizing recruitment and building a talent bench that can easily fill senior and management-level roles.
Continuously upgrading dealership employees’ skill sets — and paving the way for internal promotions — will be vital in the years to come.
To keep up with this necessary strategic shift, dealerships nationwide are looking to programs like JM&A Group’s Dealer Talent Services. Our custom programs are designed by car people, for car people, to help dealerships optimize their teams, reduce turnover, and increase productivity.