Car dealership turnover rate still too high

Walser said part of it was the compensation for his group’s salespeople, being salaried, receiving bonuses rather than being paid a percentage of profits, and the high price of last year’s new cars. This is due to profit margins.

“Some team members left last year because they felt there was a good opportunity to go to a store they could join with a higher profit margin,” he said.

Coupled with high turnover in entry-level jobs such as runners and lubrication technicians, his group’s turnover rate will reach 39% in 2022.

Karl Schmidt, president of California’s Hello Auto Group, said the opening of two stores in February and July likely contributed to an overall turnover rate of 38% last year. .

“I would estimate that 12-13% of sales were from store to store,” Schmidt says.

The #1 Cochran in Monroeville, Pennsylvania, recently expanded out of state with the acquisition of Sweeney Chevrolet and Sweeney Buick-GMC near Youngstown, Ohio, where turnover last year was in the high 20s, according to CEO Rob Cochran. rice field.

“We are working hard to get into our late 20s,” he said.

Cochran said his stores are focused on employee engagement and management training. They are committed to engaging staff rather than managers focusing solely on the tasks of the day.

“I think that’s the evolution of this industry. Historically, I don’t think that’s what we’ve been focusing on,” Cochrane said.

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