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The Auto Dealer Employee Turnover Crisis

By Danny Vendrell  | Sep 15, 2021

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.

Download Now: Building vs. Buying Talent: Which delivers better ROI for auto  dealers? [Free eBook] →


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:

The Auto Dealer Employee Turnover Crisis

Sources

  1. Cox Automotive:https://www.coxautoinc.com/market-insights/2019-dealership-staffing-study-released
  2. U.S. Bureau of Labor Statistics: https://www.bls.gov/charts/employment-situation/civilian-labor-force-participation-rate.htm
  3. Pew Research Center: https://www.pewresearch.org/fact-tank/2020/11/09/the-pace-of-boomer-retirements-has-accelerated-in-the-past-year/
  4. Data USA: https://datausa.io/profile/naics/car-dealers
  5. Emsi: https://www.economicmodeling.com/demographic-drought/


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.

To learn more, download our latest ebook: Building vs. Buying Talent: Which delivers better ROI for auto dealers?

Inside, we’ll show you:

  • The cost of hiring from outside vs. promoting from within, by the numbers
  • How to combat turnover by building an internal talent bench
  • How your talent strategy can impact your revenue and shape your culture
  • How to build an effective talent pipeline that gives you the most ROI

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