Automotive retail isn’t just about cars. Without the people who work tirelessly to ensure that each customer gets a safe, reliable car, a dealership is simply a building. It doesn’t exist without the technicians whose specific and invaluable skill set allows the industry to flourish. However, according to ESi-Q data, 1 of every 5 technicians in automotive is considering a different career path.
There is a strong and direct correlation between customer retention and service technician teams in a dealership. The NADA Workforce Study collected data from the last 15 years and found only 56 percent of service technicians stay at a dealership longer than three years. The good news is that in recent years, technician turnover has slowly declined. Last year, 19 percent of technicians that ESi-Q surveyed were looking to leave their dealership for a different job, a 3 percent decrease from the previous year. While that is encouraging, the numbers still are not where they need to be.
It will come as a surprise to no one that money is the No. 1 reason technicians cite for either pursuing a job at a different dealership or a new career path. That is normally the case across all industries. But the second most popular reason for technicians leaving is dissatisfaction with their workplace culture. The explanations run the gamut. It can be anything from employee favoritism to the way the work is dispatched. People don’t tend to stay in places where they do not feel they are valued or appreciated. If morale is low, it’s almost guaranteed that employee retention will be, too.
ESi-Q’s research provides a classic example of what can happen when an employee does not feel valued. At a dealership in Michigan, a technician was one test away from getting a promotion and an income increase. But instead of taking the test, he left for another job. When he was asked why he made that choice, he said he was tired of being forced to prove to people that he was worthy of a job he was already doing on a daily basis. Stories like that are all too common in dealerships, specifically for technicians. It’s imperative that dealerships consider these factors when implementing company mandates.
The most important component of a thriving workplace culture is communication. More often than not, the communication that employees desire is not what comes naturally to a manager. If a certain method of communication or program makes it easier for technicians to do their jobs, that’s what the manager should use, even if it is out of their comfort zone. Dealerships must be willing to adapt. Management isn’t just about delegating. It’s also about listening to the people who work for you.
A quarter of service technicians who are thinking about leaving their current dealership say that it is because they don’t see a sustainable career path or room for advancement. Service managers have to be willing to provide opportunities for technicians to grow. It should be possible for a technician to work their way up the ranks to shop foreman or fixed operations director. If there is an opportunity for a brighter future, technicians are more likely to stay at a place that offers them that chance.
Some technicians are dissatisfied with the benefits their dealership offers. Perks can go a long way and it’s essential for service managers and dealers to get creative. More flexible hours, four-day workweeks and monthly ride-hailing allowances are all things that would make technicians — and employees, in general — feel more appreciated. Dealerships should offer benefits that are unique to their company.
Every reason technicians leave a dealership is interconnected. Feeling undervalued, low morale, lack of communication between managers and technicians, poor benefits — all of these things overlap. Rectifying these issues means creating a holistic environment across every department, from leadership to sales to service and everything in between. Positive change only happens when everyone is willing to do their part. Technicians who are happy and fulfilled in their jobs are less likely to leave, which makes for a more successful dealership. Everybody wins.