Auto dealers can take heart that auto retail employees’ job satisfaction appears to be on the upswing, but there’s still much room for improvement to keep them in the fold, especially over the long haul. 

CDK – the company dropped 'Global' from most marketing materials in a rebrand several years ago – surveyed more than 400 U.S. dealership employees about workplace conditions, compensation and industry perception, finding that overall satisfaction rose 11% over last year to 82%. At the same time, the percentage of employees who intend to leave their current dealerships in the next six months fell by nearly 30% to 22%.

The improvements, though, don’t reflect several retention risk factors, including pay, the greater economy, and industry sentiment, the study found. 

“Leadership responsiveness and team dynamics are now just as critical as pay,” said CDK Vice President of Product Marketing and Enablement Bruce Johnson. “Dealerships that thrive will be the ones that listen, adapt, and lead with empathy while aligning compensation strategies with retention goals and employee expectations.”

Workplace stress remains, the survey results show, though the top reason for it has changed. Economic uncertainty leads all causes of stress at 40%, supplanting difficult customers, now at 36%, and followed in third place this year by the auto industry’s future at 31%.

“Store leadership often focuses on the controllables, not letting outside forces like the state of the economy or politics impact their strategies,” said CDK Director of Content Marketing David Thomas. “But employees signal loud and clear that the economy and the health of the auto industry are top stressors.”

Meanwhile, just over half of survey respondents – 54% – said they consider their compensation competitive, the average falling between $50,000 and $100,000. CDK cited a second-quarter Bureau of Labor Statistics report putting the U.S. median salary above $62,000. 

Still, according to the survey results, that leaves nearly half who don’t consider their pay competitive. One generation X respondent said, “If I got a better paying job or … reasonably better benefits at another dealership or job, I’m jumping.”

The auto retail industry’s future, along with feelings of economic uncertainty, add to the compensation challenge for dealers. Barely a quarter of respondents – 26% – said they’d recommend the business to others. More than a third of generation Z respondents, the most of any cohort, said they’d recommend working in the industry, one citing a flexible schedule and ability to work from home.

While the study found that 78% of respondents have no plans to leave their dealerships in the next six months, the long term is less certain, just 49% saying they see themselves staying put another five to 10 years.

“It’s a job I think is better for the younger people with no commitment, time on their hands, and can hustle out,” said one baby boomer respondent. “It can be tougher when you have family, but it’s good money. Never boring.”

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