You know it. I know it. We all know it. Turnover in retail car dealerships is and historically has been high. It seems as if the struggle never ends. NADA’s 2016 Workforce Study recently came out and my reading of it kind of went like this: Read a sentence, sigh—Read—Sigh—head shake…You get the picture.
When I read that average tenure at dealerships has steadily gone DOWN (sitting at 2.4 years for 2015) I decided to write this article. Why? Because I believe that there are simple and easy to implement ways to reducing turnover at dealerships. I believe this because I have experienced it. I’ve experienced working for a dealer as head of HR with an impressive 26% turnover rate across three stores.
When looking at turnover departmentally, sales has the highest turnover. NADA states that overall sales turnover is 67%!!! (Luxury lines at 47% and non-luxury at a whopping 72%) We’ve all read the statistics about the thousands of dollars turnover costs an organization. While these are all true there is another soft cost not as often talked about. Loyalty. Customer Loyalty is built upon relationships…if sales staff is turning over before they have the chance to reach maximum productivity (3 years if NADA is to be believed)…how are they building strong customer relationships for the dealership? Why are they turning over? Is it because they aren’t loyal to you, their employer? Employee loyalty leads to customer loyalty. Loyal employees lead to lower turnover. Lower turnover leads to higher bottom line.
So, how can dealers effectively tackle turnover and begin making headway? It can be done.