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A NEW generation of potential employees for car dealerships is showing a much greater enthusiasm for working in car retailing and service than older millennials and Generation X, according to a new survey by Cox Automotive in the United States.

The survey comes at a time when employee turnover across the US is reaching new heights while the unemployment rate is running at record low levels.

Cox Automotive said that “competition for talent is redefining the workforce and dealerships find themselves at the epicentre of the struggle to attract and retain skilled workers”.

However, the 2019 Dealership Staffing Study reveals a younger generation is showing a greater interest in dealership jobs than older generations.

Isabelle Helms, vice-president of research and market intelligence at Cox Automotive, said in a statement: “A new generation is entering the workforce and bringing with them a renewed interest in working at a dealership.

“To attract and retain employees in this highly competitive job market, dealerships should understand which benefits and cultural attributes employees value most and take action to effect positive changes within their store,” she said.

Among Generation Z and young millennials, more than 30 per cent are interested in working for a dealership. The number is even higher when roles other than sales are presented to them, according to the study.

This interest is nearly 10 percentage points higher than interest shown by older millennials and Gen X.

This suggests that the attitude of the public towards dealers is becoming more positive than in the past.

The changes made by dealers to modify their sales tactics over the past decade could now be having an impact on a younger generation which has not been influenced as much by the relentless negative press that dealers have been subjected to in the past.

It could also reflect the extremely high standard of dealership showrooms and service facilities that have been built more recently, giving dealership staff pride in their workplace, as well as the attraction of working with the very high quality and design of the cars for sale across the industry these days.

However, there is still much work to be done on staff retention, according to the survey results.

The study says that approximately 20 per cent of all dealership staff are likely to look for another job in the next six months. And one third of non-management employees are feeling neutral or unsatisfied with their jobs, the report said.

The report pointed to the high turnover rate, especially of sales staff, estimated at 80 per cent, and the danger this represents in showrooms because sales employees, according to Cox studies, are the group most likely to influence car buyer satisfaction.

“The good news is that dealerships have an opportunity to reverse this trend,” the report said

“With approximately 61 million members of Gen Z starting to enter the US workforce, dealerships have a chance to build a culture that attracts and retains this younger, tech-savvy talent.”


To win over this next generation, the 2019 Dealership Staffing Study said that dealerships must address significant gaps in today’s auto retail workplace culture:

  • Dealership employee engagement is fading with one-third of dealership staff employees saying that they are not engaged nor excited about their job.
  • Only half of non-management employees say their manager meets with them regularly to set goals that stretch their capabilities and grow their skills.
  • The absence of work/life balance can lead to staff turnover, with 40 per cent of former dealership staff saying they left due to a work/life balance-related issue.
  • A mere 39 per cent of dealership staff believe their dealership is using the latest technology.

Bob Kostkan, senior director with the Cox Automotive University, said: “Dealers can’t afford to take their eyes off their employees’ needs.

“With record high dealership turnover and a low unemployment rate of 3.7 per cent as of June 2019, it is critical that dealership leaders improve productivity while also enhancing employee engagement and retention.

“These are controllable issues that must be addressed to maximise customer experience and profitability.

“Dealerships need to act now to create a culture that makes employees feel valued and shows them they have future growth opportunities,” he said.

By John Mellor

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