Why Millennials Need To Matter To Dealers
For the past few years, millennials have been one of the biggest topics in retail automotive. They’re the new technology-obsessed drivers. They’re today’s new car buyers. And now, to the mixed reaction of some dealers, they’re the majority of the automotive workforce.
According to the most recent NADA Workforce Study, millennials have solidified their lead in retail automotive, representing 60% of all dealership hires. The average dealership is now 42% millennial talent, with this expected to increase dramatically this year and beyond.
With millennials come substantial economic and demographic differences. The millennials workforce experienced 52% turnover in 2015. This rate was significantly higher than Gen X and Baby Boomers, coming in at 35 and 26 percent, respectively. Looking at the reasons behind the stark difference at millennial turnover compared to the other age groups, a few trends can be seen.
This younger and engaged demographic is far different than those automotive professionals from previous generations. Due to holdover from the great recession, these recent grads are strapped with mountains of debt, dramatically changing their approach to savings: millennials by and large are seeking to kickstart their careers with jobs that have a guaranteed and stable income, which doesn’t align well with the high-commission structures most dealerships operate under. Dealers might first refuse to change their ways to accommodate this generation, but they’ll soon realize their talent pool is quickly dwindling as baby boomers are quickly retiring and gen-xers are moving up to more senior roles across the automotive industry. Refusal to change with the evolving talent demographics could spell disaster with the dealerships who aren’t taking broader economic factors into consideration when planning their overall approach to human capital.
Dealers willing to get ahead of this trend and appeal to millennials will first need to understand the unique challenges millennials are facing while evaluating their career trajectory.
Learn how by downloading our new eBook, The Millennial Hiring Handbook: