Dealerships are Feeling Workforce Shortages: 5 Ways to Attract and Retain Qualified Workers

Labor shortages are not new to the dealership industry. Dealers have known for years that they have to be creative to attract all types of employees, from technicians to salespeople. Unfortunately, the pandemic has enhanced workforce shortage challenges across all industries, and the automotive industry has been one of the hardest hit. A recent Fisher Phillips survey revealed that 87% of automotive employers experienced “moderate to severe” difficulty finding and retaining workers in 2021. Additionally, 28% of the survey respondents saw more women than men leave their organizations in 2021. What does this mean for dealers? Now more than ever, you must find creative yet compliant methods for recruiting and retaining qualified employees in an increasingly competitive labor market. This Insight will provide five strategies you can implement to attract and retain qualified employees.

How Can Dealers Access Talent in Competitive and Creative Ways?

1. Revisit Pay Practices. As inflation and wages increase across all industries, many dealerships are replacing their traditional, incentive-based commission pay plans for salespeople with more secure plans that guarantee pay. 
2. Consider Flexible Scheduling Opportunities and Related Benefits. The pandemic has changed how we do work. Many qualified applicants are looking for opportunities with remote or flexible scheduling options. At the same time, more buyers are choosing to shop for cars online. Dealers can take advantage of this trend by considering remote or flexible scheduling options for employees.

   Along the same lines, you may consider offering paid family leave, reduced hours, more part-time positions, and mental health benefits, such as flex days and access to therapy through health insurance. Regardless of your dealership’s size, these changes will make your company stand out from competitors by ensuring that employees, including working caregivers, have support both in and out of the workplace.

3. Be Proactive About Changing Company Culture. As you know, employees who are dissatisfied with their work culture often look for change, even if it comes with a pay cut. Changing a company’s culture does not happen overnight and should start at the top. So, you should ensure executives and managers are leading by example, recognizing good performance, and giving employees more opportunities to provide input on workplace practices, such as scheduling. Along the same lines, executives and managers should ensure they are actively listening to employee concerns. This will help identify opportunities to make meaningful changes that are responsive to employee needs. Following through on these opportunities will help retain valued employees and attract productive new employees.
4. Ask Current Employees to Help. Current employees who are happy at work are the best advertisements for open positions. Ask for their help in your recruiting efforts and reward those who bring successful new employees into your dealership. For example, you can give monetary rewards for referrals who are hired and stay past the probationary period.
5. Use Technology to Your Advantage. Look for opportunities to implement technology-driven systems, such as scheduling apps and performance management tools, to make your employees’ jobs easier and more efficient.

Conclusion

We will monitor these developments and provide updates as warranted, so make sure that you are subscribed to Fisher Phillips’ Insights to get the most up-to-date information direct to your inbox. If you have further questions, contact your Fisher Phillips attorney, the author of this Insight, or any attorney on our Automotive Dealership Industry Team.