Stopping Dealership Employee Turnover

Posted by Whitney Williams on Jan 17, 2022 9:30:33 AM


The turnover rate at dealerships has reached an unsustainable point. According to JMA Group, “the employee turnover rate in the automotive industry is 46%, an all-time high.” That staggering percentage is taking an overall snapshot of the dealership. When you examine individual departments, the situation is grimmer. As of 2019, pre-pandemic, annual turnover for service advisors came in at 49%, while yearly turnover for sales consultants was at 80%.

When you lose an employee, you lose the hours you put into onboarding that person, their expertise, and potentially losing any customers the employee accumulated during their time with you. With so much time and money going out the door at increasing rates, dealerships have to assert concentrated effort into changing the climate for new hires. The good news is, dealers don’t have to slip down the slope without an anchor. As we begin a new year, enact these four tips to safeguard your store from staff shortage.

Four Tips To Combat Turnover

Every year, dealerships lose an average of $500,000 to the revolving door of employees. Was that your store in 2021? There’s no time like the present to change the narrative. 

Bring in the Right People

It can be tough to turn away a prospective employee today. Regardless, hiring warm bodies leads to profit loss in the end. Position yourself to attract top talent by marketing the position and selling your brand. Analyze your screening process to see where you can make changes to ensure you end up with the right candidate. Anyone you bring in should have potential to evolve into senior management positions. Don’t ignore the red flags. This isn’t Tinder. 

Train Them Appropriately

The worst thing you could do for your bottom line is hire staff and throw them to the wolves. Train new hires so well that they’re positioned to positively impact their team, and your customers. Offer thorough training to set your employee up for success, then surround them with support. A common complaint of new dealership employees is feeling isolated or disconnected from the team. Making someone feel welcome really isn’t going the extra mile. It’s normal. Ensure that the employee has been introduced to someone who can help acclimate them to the dealership, has their email set up on day one, and has a proper workspace. If you’re expecting an employee, their work environment should be ready before they walk in. 

Offer Better Compensation

You’ll never keep people that aren’t making money. Car sales in particular can be cut throat, and a career that is difficult to get off the ground. Give your salespeople the tools to make more money with accessory sales. Printed accessory brochures aren’t tools. Digital accessory catalogs with configurable assets are the only way to present and sell accessories today. During the chip shortage, Vehicle Personalization is more important than ever as many of the cars, customers want, aren’t an option. Not only should training for accessory sales be mandatory, regular training on how to use the tools and get the sales!

Improve Company Culture

Some dealership environments resemble college fraternities, complete with hazing. Frankly, it’s ridiculous. Break the mold by creating an inclusive environment with diversity and employee support. There’s no better way to cultivate diversity than to maintain a diverse management staff. There’s a trickle-down effect. Consider a mentoring program that bridges the gap between new hires, in those precarious first few months, and seasoned staff. Rather than fierce competition amongst team members and motivating with fear (i.e. sell more or lose your job), encourage unity and willingness to help each other along. While individual sales goals have their place, consider setting team incentives and promoting store-wide goals. 

Let Insignia Group Help You

Insignia Group is the leading provider of digital accessory catalogs in dealerships nationwide. Presenting accessories at the point of sale has never been easier, whether the sale takes place online or in the store. With the ability to set commissions and monitor individual sales and registrations, our system is ideal for accountability and tracking. Our reporting makes it easy to see which parts are selling, update pricing and labor with a few clicks, and track communication across the board. As you concentrate on retention in 2022, make sure you have the tools you need to set yourself up for success. 

Contact Insignia Group today for a free consultation


Topics: Marketing, Lead