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How Can Dealership Companies Improve Employee Retention Rates?

Employee retention is crucial to your bottom line. Learn valuable tips for keeping your employees around for the long haul with FlexDealer.

Car dealership staff who are positively retained by successful dealership brands.

High employee turnover rates in dealership companies is a problem for many business owners. It can be tough to keep moving the needle forward when you are frequently putting resources into hiring, onboarding, and training, only to have those employees leave before making it to their one-year anniversary. This cycle is time-consuming, expensive, and frustrating! However, there are several things that dealership companies can do to improve employee retention. 

If you own a dealership company and want to keep good employees around longer, here are some employee retention strategies that may help.

1. Existing Employees Should Be Fairly Compensated

To keep your best employees, you need to offer competitive salaries and benefits. Pay your people what they are worth and do your research to ensure you’re providing fair and adequate compensation. On top of regular salary, you can also look at retention bonuses, incentives, and even stock packages, which can all contribute to employee retention. Make sure you’re giving your current employees regular (and adequate) raises at least annually, and that these increases are in line with general inflation.

2. Provide Remote Working Options

Providing remote working options is one way to help meet work-life balance and improve employee retention rates. Be sure to consider the following when implementing a remote working policy: 

  • You need to define what "remote work" means for your company. Is it working from home full time or simply having the option to work from home a few days a week?

  • You also need to consider which positions can be done remotely. Not all roles within a dealership can be done from home, so it's essential to identify which ones would work best.

  • It is necessary to put together a remote working policy that outlines expectations and guidelines for employees. This will help ensure everyone is on the same page and that the transition to remote work goes smoothly.

If you’re looking for more tips on how dealership companies can successfully manage remote employees, be sure to check out this article on the topic.

3. Use a Variety of Hiring Strategies to Attract New Employees

Many businesses are finding it challenging to attract and retain quality employees as the economy continues to strengthen. To improve your employee retention rate, it is essential to use various hiring strategies.

One effective strategy is to recruit employees who are primarily a good fit for your company culture. Hiring managers should take the time to get to know each applicant and ask questions that will give them insight into whether they would be a good fit for the organization. For many people, hard skills can always be learned - but the right attitude can not. If you hire good people first and foremost, you can train them through other parts of the job as they grow within your dealership. They’re more likely to feel loyalty to your company as they learn and grow with you.

Another strategy is to offer competitive salaries and benefits packages to attract potential new employees. Let’s face it: money talks. And offering competitive pay and perks can swing talented employees to your dealership over the competition.

4. Invest in Advanced Technologies

Technology has revolutionized the workplace over the last several decades, and there are no signs of slowing down soon. For businesses, this means investing in advanced technologies to stay ahead of the curve and keep good employees.

With the right technology, employees can communicate and collaborate more effectively. It gives them greater flexibility and mobility with their work, and allows them to work from anywhere at any time, which can be a significant perk for employees who value work-life balance. All of these things can lead to increased employee satisfaction and lower turnover rates.

5. Create a Positive Work Environment

You can absolutely create a work environment that is conducive to employee retention. This includes a positive atmosphere where employees feel valued, appreciated, and essential to the business. Some ideas to do this includes:

  • Providing employees with opportunities for career growth and development

  • Setting clear expectations and doing regular performance reviews

  • Supporting employees as their career trajectory changes and grows

  • Practice inclusive hiring practices to build a robust and diverse team

  • Discourage toxic work culture with a zero-tolerance policies for behaviour that doesn’t meet the values of your company


Companies need to improve their employee retention rates to remain competitive and keep good talent. Doing so can reduce turnover costs, improve morale, and maintain a strong workforce.

FlexDealer is a creative marketing agency for car dealers. We assist dealerships in their growth by providing dealer website hosting, inventory management, and other dealership services. Contact us today to learn how we can help your new or used car dealership gain more customers and sales.

FlexDealer Team      

FlexDealer Team      

FlexDealer is a leading provider of innovative dealership inventory and marketing solutions. Our goal is to help dealerships thrive and grow in a rapidly changing industry.

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