I Can’t Get No… Satisfaction!
The turnover rates in the automotive sector of the American economy is among the highest of all sectors. The reasons for this are many, but essentially it comes down to the same factors as in other industries – a lack of retention strategies among employers.
It’s easy to blame the economy, labor shortages, the work ethic of the “younger workers,’ competition, and other external factors, but retention is about creating a culture where employees don’t want to leave.
Long work hours, weekend work hours, a lack of career growth opportunities, and “burnout” from overwork are variables within the control of employer management. How many employers put themselves in the shoes of the employees being asked to fulfill roles with these obstacles? Employees stay where they are happy and are respected. Pushing people into a work environment that challenges their work-life balance is a sure way to drive them off. Establishing clear objectives and setting reasonable goals that meet the expectations of both parties – the employee and employer – without disrupting the balance between work and life is the environment that retains employees.
So why is the automotive industry plagued by this more than perhaps other industries? Certainly, there are shortages of the skills required for some technical jobs as technology continues to evolve. This is particularly true in the service and parts jobs. The employer that recognizes that and continually trains their employees will see much higher retention than those that have to continually “shop” for employees, luring them in with bonuses and a few dollars more pay. Those employees will continue to change jobs when others come with similar offers and the turnover issues will remain. Continuing education is one of the best tools for employee retention.
Obviously, sales positions have the highest rate of turnover. Creative programs that reward sales reps for performance drive sales and most salespeople are commission based. With that said, selling cars is about “being on the lot”. Again, continuing education can be a very effective strategy. The more trained a sales rep is about his or her product, the better and faster their close rate and the better the chance they can get the sale on the initial visit. Sales reps that start a sale and then lose it to their colleague because they aren’t there when the client returns to make the purchase, get frustrated very quickly. Providing a “lock in” program where a sales rep can register a customer and get at least a split of the sale provides much more comfort and allows the employee to make more life-balanced decisions about working long and inconvenient hours.
Compensation is just one benefit, but it’s a much bigger issue for unhappy employees. Employers often think that money is the solution, but a closer look at the work environment and an honest assessment can lead to better retention without spending more on higher salaries.
In brief, the auto industry is no different from any other industry, as it ultimately depends on creating a culture of loyalty and mutual respect. When employees receive a fair wage, good benefits, ongoing education, opportunities for advancement, and an environment where they feel part of a unified community within the company, they are much less likely to leave. Simply put, job satisfaction drives retention.