The automotive industry is undergoing rapid transformation, and hiring has become one of the top challenges dealerships face today. From staffing shortages to increasing demand for specialized roles, the pressure is on to attract and retain top talent. But how much of what we believe about the hiring landscape is actually true?
We analyzed data from the 2025 Employer Study: Automotive, where over 230 HR professionals and dealership leaders shared their experiences. Let’s separate myths from reality and uncover actionable strategies to help your dealership thrive.
Myth #1: “Hiring Service Technicians Is Just Another Recruiting Challenge”
Reality: Service technicians are the hardest roles to fill—and demand is only increasing.
According to our survey, 79% of respondents identified service technicians as the most challenging positions to recruit for. This demand is driven by the rise of electric vehicles, emerging technologies, and a lack of graduates from technical schools. Moreover, 66% of respondents expressed concern about the dwindling pipeline of technicians entering the workforce.
What You Can Do:
- Partner with Technical Schools: Build apprenticeship programs to create a direct pipeline of talent for your dealership.
- Offer Competitive Benefits: Flexible schedules, tuition reimbursement, and mentorship opportunities can make your dealership stand out.
- Invest in Upskilling: Provide ongoing training for current employees to help them adapt to new automotive technologies.
Myth #2: “Turnover Is a Problem for All Industries—We Can’t Do Much About It”
Reality: Sales associates and service technicians have the highest turnover rates, but dealerships can reverse the trend.
High turnover disrupts operations and increases hiring costs. Our research shows that 56% of dealerships struggle with sales associate turnover, followed closely by service technicians. The main drivers? Burnout, lack of career growth opportunities, and uncompetitive compensation.
What You Can Do:
- Address Burnout: Offer shorter shifts, mental health resources, and wellness programs to prevent employee exhaustion and minimize turnover.
- Create Career Pathways: Employees are more likely to stay when they can see opportunities for advancement. Develop clear growth plans for each role.
- Recognize Contributions: Frequent recognition programs, bonuses, and even small incentives can make employees feel valued.
Myth #3: “Employee Referral Programs Don’t Work in Automotive Hiring”
Reality: Employee referral programs can be a game-changer—but many dealerships fail to maximize their potential.
While 68% of dealerships have employee referral programs, participation and tracking remain significant challenges. Many programs rely on outdated methods like spreadsheets or word-of-mouth, and 44% of respondents said they wish more employees participated in their programs.
What You Can Do:
- Modernize Your Program: Use automated tools to track employee referrals, streamline payouts, and keep employees engaged.
- Promote Regularly: Use email campaigns, meetings, or even text notifications to remind employees of the program and its benefits.
- Offer Meaningful Rewards: Cash bonuses are great, but consider adding options like extra PTO or unique workplace perks to motivate participation.
Myth #4: “Compensation Alone Will Attract Top Talent”
Reality: While pay is important, employees also value flexibility, culture, and growth opportunities.
When asked about salaries, 45% of dealerships reported only modest increases (3–5%), while 11% made significant adjustments. But compensation is only part of the equation—today’s employees are looking for more. Flexible schedules, career pathways, and strong workplace culture are becoming key differentiators.
What You Can Do:
- Offer Customizable Benefits: Tailor packages to meet the needs of different employees—student loan repayment for younger workers, or retirement plans for older employees.
- Highlight Your Culture: Showcase your dealership’s values, team dynamics, and success stories in job postings and on social media.
- Provide Growth Opportunities: Training programs, mentorship, and tuition reimbursement can set your dealership apart in a competitive market.
Myth #5: “Generational Differences Make Workforce Management Too Complicated”
Reality: A multigenerational workforce can be a major strength when managed effectively.
For the first time in history, five generations are working together in the automotive industry. While this diversity in the workplace brings challenges—such as differing expectations and communication styles—it also provides dealerships with a wealth of perspectives and skills.
What You Can Do:
- Foster Collaboration: Implement mentorship programs where experienced employees can share their knowledge with younger team members.
- Tailor Benefits: Flexible schedules for Millennials and Gen Z, and retirement planning for Baby Boomers, can help bridge gaps.
- Encourage Open Dialogue: Create forums for employees to share feedback and learn from one another.
The Road Ahead: Building a Resilient Workforce
The automotive industry is at a crossroads. Hiring and retention challenges are significant, but they also create opportunities for dealerships to innovate. By addressing these myths, embracing data-driven hiring strategies, and focusing on your employees, you can build a workforce that’s ready to drive success in 2025 and beyond. What steps will you take to lead the charge?
Ready to Transform Your Hiring Process?
If you’re ready to take your dealership’s hiring strategy to the next level, start by building a foundation of speed, culture, and innovation. Together, we can create a workplace where employees thrive—and your business grows. Schedule a demo with our team today to get started.
