Staffing shortages have challenged automotive dealerships and compromised operational efficiency and customer satisfaction. Modern business leaders have rethought their personnel approach by focusing on employee retention. Managers must implement strategies to hire, maintain, and improve top talent. Here are six proven methods that emphasize targeted initiatives to retain a competitive edge.
Implementing predictive analytics to identify at-risk employees
While traditional employee retention measures are reactive, predictive analytics lets dealership owners be proactive. This technology identifies trends to determine which workers are the most at risk of leaving the business. For instance, the algorithm may analyze factors such as absenteeism, role history, survey feedback and participation in development programs. Advanced AI can analyze the variables using historical data and give managers crucial information.
Dealership teams use analytics to gain actionable insights and apply them to their operations. The machine learning algorithm can provide a risk score that flags specific factors. Once the data is present, supervisors can schedule one-on-one meetings to discuss disengagement issues. Then, they can focus their resources on the employees most likely to leave.
Integrating real-time employee feedback loops
While annual surveys are helpful, real-time feedback loops help businesses improve employee retention and avoid staffing shortages. Dealership management should implement weekly or biweekly surveys focused on specific topics, such as work-life balance or leadership quality. Supervisors can review the comments and adjust their operations accordingly.
Dealerships should wield the feedback loop to demonstrate responsiveness and employee care. For instance, the business could address comments about a broken coffee machine or delays in specialized tools. Management teams can close these loops quickly by ordering a new coffeemaker, reviewing tool inventory and investing in new equipment sets.
Conducting stay interviews and exit analytics
Another way to get quality feedback is to conduct stay interviews. These one-on-one sessions with supervisors or HR representatives are proactive checkups to build trust with dealership employees and ensure their satisfaction. Inquiries may focus on what keeps employees at the business or how their daily workflow could improve. Experts say these interviews improve retention rates, satisfaction and engagement.
Employees will occasionally leave, so dealerships must dig deeper with exit analytics. Advanced data lets management teams understand why these departures occur. The exit interview process should include a structured questionnaire followed by segmented data. Focusing on specific departments, tenures and performance levels provides a more nuanced picture of their workers.
Altering compensation structures
Dealerships could address staffing shortages by reviewing their compensation strategies and offering opportunities for extra money. Increasing pay has proven to be an effective employee retention strategy because it makes workers more satisfied with their jobs. A 2024 Dealertrack report said a Sacramento dealership increased pay and saw management tenures increase to 10.1 years and sales staff durations to 7.4 years.
The Sacramento business altered its compensation structure by eliminating traditional commission-based pay at 12 of its dealerships. Instead, the employees received a steadier paycheck and other perks, such as 40-hour workweeks without reducing wages. After introducing the policies, management found increased job satisfaction and improved tenures in their sales staff.
Improving the onboarding process
Optimizing employee retention should start when staff members first walk into the showroom. Supervisors should prep new workers and set them up for success by outlining specific and measurable goals for the first 90 days. Experienced employees should take the new hires under their wing to answer on-the-job questions and build relationships.
The dealership should take the initiative to show employees top-notch organizational skills. Leadership teams should ensure the new hires have access to all systems, logins and equipment before they arrive. Personalized welcomes, whether in-person or virtual, can make them feel appreciated and ready to launch their careers. Experts say a strong onboarding process improves new hire retention by 82% and productivity by 70%.
Investing in advanced technologies
The workforce is getting younger, so dealerships must acclimate to the times. Young people want employers to look to the future and implement advanced technologies. A 2023 survey said millennial and Gen Z workers have the highest technological expectations at work, and 91% of business leaders say they must provide advanced digital experiences to meet demand.
Automotive dealers should respond with advanced platforms and workforce management systems. Managers can start with AI-powered training services that provide personalized and adaptive learning experiences. This software can adapt to the employee’s skill level and learning pace, thus offering tailored content for engagement and motivation. Other technologies could include virtual reality and efficient communication channels like Slack or Microsoft Teams.
Improving employee retention to deal with staffing shortages
Automotive dealerships face staffing challenges due to a changing labor market and workplace demands. However, employee retention goals can be achieved by embracing modern practices and a multifaceted approach. From stay interviews to predictive analytics, businesses can build a resilient and loyal workforce.
