Navigating the Evolving Dealership Workforce: What We Can Learn from the CDK Workplace Study

If there’s one thing I’ve learned in my years in the industry, it’s that building a strong dealership team is both an art and a science.?

With the industry shifting rapidly, especially over the past few years, understanding what makes employees tick is more crucial than ever. That's why the 2024 CDK Dealership Workplace Study caught my eye—it's packed with insights that can help us all navigate the challenges of attracting and retaining top talent in our stores.

Here’s a look at some of the study's key findings and my take on how we can apply them to create a more engaged team.?

Employee Satisfaction is Surprisingly High, But Retention is Still a Challenge

First off, here’s some good news: 74% of dealership employees are satisfied with their jobs. That’s a big deal, especially when you consider the national average is just 51%. Competitive pay and solid benefits are driving this satisfaction, which isn’t a huge surprise. However, despite this high satisfaction rate, nearly a third of employees could be on the move in the next six months. If you’re running a dealership, that’s a wake-up call.

We know that losing even one key player can disrupt the whole operation. Now more than ever, it’s critical to check in with your team regularly, ensure they feel valued, and anticipate any potential departures.

Work-Life Balance: The New Dealership Currency

In the old days, we often saw long hours as a badge of honor—proof that we were committed to closing deals and keeping customers happy. But the reality is times have changed. Work-life balance is now the number one factor in job satisfaction for dealership employees, outranking even compensation. In fact, 83% of respondents said that work-life balance is crucial to their overall happiness on the job.

Many dealerships are catching on by offering more regular hours and even closing during traditional sales holidays to combat burnout. If your store isn’t adjusting to this new reality, you could be missing out on retaining top talent.

Pay Structures: The Complexity Continues

Compensation will always be a hot topic in this business, and dealerships remain unique in how they handle it. The mix of salary, commission, or a combination of the two has been debated for years, and this study doesn’t change that. While many employees are still drawn to the high earning potential, the complexity of pay structures is causing some friction. Employees are increasingly favoring more straightforward performance-based pay plans, like fixed salaries plus commission.

The takeaway here? Keep your ear to the ground. If your pay structure isn’t in line with what your team wants, it might be time to rethink how you’re compensating your people.

Benefits: Tailor Them to Your Team

Let’s talk benefits. It’s clear that employees value a good benefits package, but the priorities may not be what you expect. Retirement planning and employer matching topped the list, while medical and dental benefits ranked lower than I anticipated—likely because many of our younger employees are still covered by their parents’ insurance plans. This is a good reminder to tailor your benefits to meet the needs of your workforce. One size definitely doesn’t fit all.

Opportunities for Growth: A Must for Retention

Finally, let’s talk about career development. Today’s employees want more than just a job—they want a career path. They want to know that there’s room to grow within the dealership, and they’re looking for opportunities to advance. Not every team member can become a manager, but offering training, mentorship, and specialization opportunities can go a long way toward keeping them engaged and loyal.

People First?

At the end of the day, building and retaining a great dealership team is about more than just offering competitive pay and benefits. It’s about creating an environment where people feel valued, have opportunities to grow, and can maintain a healthy work-life balance. The insights from the CDK Dealership Workplace Study are a valuable resource for any of us looking to keep our teams strong and engaged in the long term.

Let’s continue to evolve with the times and make our dealerships not just great places to buy a car but great places to build a career.

Until next time, keep driving forward.

— Jim?