An automotive business is only as strong as its employees. Within the automotive industry, human resources departments are tasked with identifying, recruiting and developing talent that ranges from cashiers to mechanics to managers and senior leaders. By remaining cognizant of the challenges they face, human resources professionals and owners of of small automotive businesses can grow and improve the performance of those businesses.
Lack of a Human Resources Strategic Plan
According to business advising firm Schneider Downs, one of the biggest human resources challenges the auto industry faces is the fact that many automotive businesses lack a “comprehensive, step-by-step action plan to become an ’employer of choice.” In other words, automotive businesses struggle with major human resources functions because they do not have a strategic, focused plan that involves hiring, training, delegating, promoting and releasing employees. Because they do not have strategic plans, Schneider Downs argues that most automotive businesses operate without both the strategies needed to find the right talent and the processes required to maximize their impact.
Turnover, or the number of employees who quit or are fired and must be replaced, is an key human resources problem in the automotive industry because it is both common and costly. According to Auto Dealer Monthly, the total cost of replacing a lower-level employee, such as a cashier in an auto dealership, is around $3,000. Senior and skilled employees, such as sales professionals, managers and mechanics, cost even more to replace. To overcome this challenge, Auto Dealer Monthly suggests that automotive businesses closely review turnover metrics to identify patterns and causes of turnover. Once identified, patterns and causes can be strategically reversed.