Many Canadian dealers have found themselves plagued with the same problem: high employee turnover.
Let’s explore why your employees are leaving and examine some practical strategies you can use to improve your recruitment and retention, particularly for Gen Z workers.
Why is turnover high?
Let’s start by addressing why dealers are seeing a high employee turnover. First, there’s the environment itself.
Dealer employees — particularly Gen Zs and Millennials — report long hours and weekend shifts, commission-based pay structures, and poorly defined career paths as major drivers for their exits. Meanwhile the exits of Gen X and Baby Boomer employees were most often related to retirement. Gen Z turnover is three times that of Gen X and Baby Boomers.
Here’s the thing: the next generation of our workforce wants more flexibility in their work arrangements. They crave balance between their work and personal lives, which makes dealer roles like sales reps and service technicians less appealing.
These jobs often require employees to be on-site, making hybrid or remote work nearly impossible. Unlike desk-based roles, positions like technicians and sales consultants demand hands-on interaction with customers and equipment. As a result, dealers struggle to offer the type of flexibility workers now expect from their employers.
Additionally, many employees — especially your next generation of workers — expressed difficulty in envisioning a clear career path within the dealer. They struggle to see how their current roles connect to future opportunities. They want more than just a paycheque, they want career mobility, learning opportunities, and a sense of purpose in their work.
Create a flexible and attractive workplace
So, how can dealers adjust? One solution is to rethink scheduling.
While it may not be possible to offer remote work to all your roles, there are creative ways to introduce flexibility. For instance, dealers may want to consider offering split shifts or shorter bursts of work. Much like the restaurant industry will split shifts during peak hours, your dealer can implement similar strategies, allowing your team to have more control over their schedules.
In addition to flexible hours, providing mental health and wellness programs can make a considerable impact on retention. Offering resources for mental health support not only shows that your dealer values its employees, but it helps to reduce burnout.
And let’s not forget continuous learning. One of the biggest mistakes a dealer can make is assuming their people only want to climb up the ladder. Today’s workforce is interested in upskilling — like learning new skills, upgrading the ones they already have, and / or exploring different aspects of the business.
Providing your workforce with opportunities for professional development, whether it’s through mentorship or cross-department training, not only helps to keep them engaged — it gives them a reason to stay.
Build clear career paths
Career progression is key when it comes to keeping your best talent. Without a clear path forward, employees — especially Gen Z — are quick to move on to other opportunities.
Your dealership should focus on creating structured career paths, offering employees a clear view of what the next steps could look like. This doesn’t have to be a complicated endeavour. You can start by providing a clear job description that includes potential paths forward or discussing career goals during performance reviews with your existing team members. Employees should know exactly what skills and experiences they need to advance within the organization.
Career paths aren’t only about promotions. They’re also about giving your workforce opportunities to move laterally within the business. For example, a service technician might be interested in transitioning to a sales consultant role, or a sales consultant might want to explore a customer service position. Offering these types of opportunities can make a considerable difference in retention rates.
Leadership also plays a huge role in employee satisfaction. Empathetic leadership — leaders who truly understand and care about their employees’ needs — can make all the difference.
Strengthen employee engagement
It’s not just about the work being done. Employee engagement is another critical piece of the retention puzzle. One easy — and often overlooked — strategy for improving engagement is conducting “stay interviews.”
Unlike exit interviews, which only happen after someone has decided to leave, stay interviews focus on the employees who are still with your team. These discussions give your employees a chance to share why they stay, what they love about their job, and what could be improved.
These conversations are incredibly valuable because they help you address small issues before they become a reason for leaving. Stay interviews also leave your workers feeling heard and appreciated, which can go a long way in improving retention.
Leadership also plays a huge role in employee satisfaction. Empathetic leadership — leaders who truly understand and care about their employees’ needs — can make all the difference. Dealer leaders should prioritize self-awareness and develop the skills needed to support their teams, both professionally and personally.
Lastly, mentorship programs can be a game changer. By pairing newer employees with more experienced staff, you create an environment where knowledge sharing becomes part of the culture. Mentorship doesn’t have to be formalized either, it can happen naturally through coffee chats, ride-alongs, or team-building events. These relationships help employees feel connected to their work and to each other.
Enhance employment branding
In today’s job market, a strong employment brand can be just as important as offering competitive pay. Job seekers now expect to know what it’s like to work at a company before they even apply. However, many dealers focus almost exclusively on selling products and services, neglecting to showcase what it means to work at your operation.
Take a look at your website. Does it clearly explain what it’s like to work there? Does it highlight employee benefits, company culture, and values? If not, it may be time to change that. If possible, make sure your website includes testimonials from current employees, highlights any community involvement, and provides a clear path for applicants to ask questions about what it’s like to work at your dealership.
The first steps to reducing turnover
Reducing turnover and improving retention starts with a few simple changes. An easy first step would be starting to schedule stay interviews to understand why your current employees stick around. From there, look for opportunities to offer more flexible scheduling and invest in wellness programs. Take the time to develop clear career paths so employees can see their future with your dealership.
CHRIS SCHAUFELE is MNP’s National dealership service leader and a Business Advisor with the Firm’s Assurance and Accounting group in Surrey. With more than 15 years of experience working with equipment and automobile dealers, Chris oversees a dedicated team of professionals and the Firm’s delivery of dealership services across Canada. Chris helps dealers and leasing companies, as well as business owners in other industries, ensuring they have the information they require to make strong business decisions. He delivers a full suite of assurance services, helps with tax planning and compliance and advises on a broad range of business issues. His expertise in accounting and assurance standards and keen understanding of the industry allow him to identify opportunities to help his clients succeed.
