According to the National Automobile Dealers Association (NADA), dealerships’ annual turnover rate continues to grow at an alarming rate, with over 46 percent of employees leaving the industry. This mass exodus has contributed to operational challenges that directly hinder sales and impair customer service quality.
On today’s episode of CBT Now, Jen Suzuki, President of eDealer Solutions, shares her critical insight on how a strong and positive dealership culture can be a powerful tool in combatting the massive turnover plaguing the industry.
In the post-pandemic landscape, dealerships are finding it difficult to sell cars at sticker prices. This contrasts sharply with previous years, when sales occurred more frequently and were much easier to close. According to Suzuki, dealership staff that entered the workforce during this boom struggled to grapple with this new retail landscape, resulting in low morale and higher turnover rates across the industry.
Furthermore, Suzuki states that revitalizing the dealership culture is essential to addressing the high turnover rate. Upper management should adopt a three-pronged strategy to restore the dealership’s culture.
Firstly, senior leadership is responsible for evaluating what they stand for and refining the dealership’s identity. They need to actively reinforce these principles, as the most successful dealerships often have leaders who continuously “get in the trenches” alongside staff to stay connected to their clients and observe their team in action.
Secondly, leaders should focus on creating an effective game plan. This plan not only provides a structure for the entire staff but also sets clear expectations for what teams should accomplish daily when they’re not with customers or on the showroom floor.
Thirdly, leaders should focus on the training and development of their teams. Identify where your team is winning and where there are areas of opportunity. Boost your team’s morale by celebrating wins to reinforce those good behaviors positively. After coaching the observed opportunities by roleplaying, modeling the behaviors, and putting them into action.
Suzuki encourages leaders to think outside the box to make the workplace fun and engaging while building high-performing teams that are receptive to feedback. This can be accomplished through contests or incentives that foster a competitive and team-oriented environment.
By adopting this effective strategy, dealerships can improve team morale, reduce turnover, and foster a customer-oriented culture.
“Rethink your strategy about how you go about nurturing team member success.” – Jen Suzuki
