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Meeting the Challenges of a Changing Workforce

Dealership Staffing Study


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Article Highlights

  1. The struggle to hire and keep the right employees can have broad operational consequences. For example, hiring relatively inexperienced sales and service advisors because they seem to be a good personality fit can result in bad hires, high turnover and associated expenses.
  2. The most successful dealers will have a solid staffing strategy and make the most of the millennial workforce. High-quality, long-term employees are critical to dealer profitability, longevity and growth. Having the right people in the right roles, properly trained, and operating in ways that reflect your desired customer experience are key differentiators for your business.
  3. A staffing strategy designed for long-term dealership growth and profitability has four critical components: Recruiting, Training, Communication and Recognition. Attracting desired talent to your organization, providing a clear career path and positive work environment, and recognizing employee contributions are all critical to sustainable dealership success.

More than half of dealership gross profit margin goes to payroll and the impact that your employees can have on your customers and on your culture can be significant. With an average cost of $10K per new hire and an annual turnover rate as high as 67% for sales positions, a dealership with 100 salespeople can lose $670,000 a year… not to mention the knowledge and customer relationships that walk out the door with that employee.

As dealers face increasing margin compression and operating costs, profitability is being tied up in comprehensive operational inefficiencies. Employee recruitment, retention and development (staffing) is one of the biggest sources of operational opportunity that dealers face today. The most successful dealers will have a solid staffing strategy and make the most of the millennial workforce. This study reveals best practices for achieving these goals.

Dealership Staffing Study

Discover how a solid staffing strategy will accelerate dealership productivity, foster better relationships and culture, improve team member retention and performance, and boost employee and customer satisfaction. See the complete study results and best practices.


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