Data from the annual National Automobile Dealers Association (NADA) Dealership Workforce Study suggests that the automotive field has a turnover rate of around 40%, which is staggering compared to other industries—but why does this matter to employers?
Well, it’s not just because of the cost involved, but also because of the time that can be spent trying to fill these positions. In fact, research from ADP estimates a cost of $4,129 and a 42-day average to fill open positions. Knowing this, you realize it’s more cost-effective to retain technicians than hire new ones.
To retain the best technicians in your shop or dealership, you must first understand what actually drives them away. Based on research compiled from technicians across the industry who left their previous positions, these are the top seven reasons why shops and dealerships can’t keep employees today.
1.) Inadequate Compensation And Benefits
The biggest complaint among auto technicians is the lack of pay and benefits in relation to their workload and skill level.
While the Bureau of Labor Statistics reported a median wage of $47,770 for automotive service technicians, this figure likely includes lower-paid positions like lube technicians, which skews the data. We should note that the lowest 10% of technicians earn less than $30,600 per year, which is below the U.S. poverty guidelines for a four-person family.
In reality, the average pay for a technician with even a modest amount of experience typically falls between $65,000 and $70,000 annually. On top of this, more seasoned and experienced technicians can earn $100,000 or more, depending on the market they’re in. Some in high-demand areas make up to $200,000 per year, while others in lower-income regions may earn between $50,000 and $60,000 per year.
Beyond the basic lack of compensation, many mechanics complain about the benefits package or the lack of one. It’s challenging to find technician positions with retirement plans and healthcare, leading to more out-of-pocket expenses for these families.
2.) Lack Of Career Growth And Development Opportunities
While the path to becoming an automotive technician may seem clear-cut, the industry often lacks robust professional development opportunities beyond the basics. This lack of career growth is a key reason why many technicians leave their jobs.
In a more typical 9-to-5 job, an employee can start in one position and slowly move up the ranks, but that’s less likely when working in a shop or dealership due to the lack of positions available. Sure, a mechanic can become more experienced and maybe oversee the shop one day or move into a service advisor position, but where do they go after that?
For that reason, a lot of technicians will eventually move out of the industry entirely and switch careers, especially as they get older and have trouble working on cars.
3.) Having A Poor Work-Life Balance
Auto technicians are notorious for working long hours, including during evenings, over weekends, and in some cases, even on holidays.
They often do this because of high customer demand and tight repair deadlines. Plus, technicians working on a flat rate pay structure can make more money for each job, while those getting paid hourly are normally eligible for overtime pay.
While working more can add more money to the technician’s bank account, it takes a toll on their personal life. After all, it’s only a matter of time before the technician feels the burden of the additional stress and work fatigue.
The long hours worked can strain personal relationships and also reduce the time available for their hobbies and interests, which is exactly why it’s so important to have a strong work/life balance as a cornerstone of your shop or dealerships culture.
4.) Unhealthy Or Unsafe Working Conditions
In the average shop or dealership, technicians are exposed to several different hazardous materials, including solvents, chemicals, gasoline, and oil. Daily exposure to these substances can lead to health risks and skin conditions, leaving some technicians to wonder if the job is worth the possible cost to their overall well-being.
Some shops also struggle to implement proper safety protocols to reduce workplace accidents. If technicians feel that the job site is dangerous, they will start looking for another job and an employer that cares for its workers.
The long-term effects of poor ergonomic practices while working can also result in sprains, strains, and musculoskeletal impairment. Older mechanics may also complain of hearing loss from constantly being around loud machinery.
All of these factors are taken into account by technicians when they start working in the industry—they always evaluate whether the result is worth the temporary job security.
5.) Ineffective Leadership And Management
No one wants to spend eight hours a day working under poor management. Ineffective leadership can manifest in several different ways:
Lack of Vision: Leaders failing to provide a clear direction for the employees can leave people feeling unmotivated.
Poor Communication: Without open and transparent communication, employees can end up confused and misunderstandings may start among team members.
Micromanagement: On the other end of the spectrum, managers may lack trust in the employees’ ability and prevent them from making decisions independently.
Failure to Delegate: Leaders who don’t delegate eventually become overwhelmed and burn out while preventing technicians from developing their skills.
Resistant to Change: Ineffective leaders resist innovation and changes, causing stagnation in the workplace and sowing discourse among the team.
Inability to Manage Conflict: While conflict is bound to happen, leaders must manage and overcome it effectively. Otherwise, there are going to be unresolved issues among team members which can result in lower morale among technicians.
Lack of Emotional Intelligence: Leaders without emotional intelligence fail to have empathy, causing poor work relationships.
6.) Inequitable Job Expectations
Inequitable job expectations can cause employees to face unequal and unfair demands for their respective roles.
It causes dissatisfaction and affects the overall performance of workers. These expectations sometimes stem from bias or discrimination, but it could be as simple as a lack of clarity from poorly defined roles.
These issues can ultimately lead to a toxic work environment, and if the problems are severe enough, there could also be legal battles to face. Either way, most technicians aren’t going to stick around to be a part of the drama.
7.) Lack Of Recognition And Appreciation
Everyone wants to be recognized for their hard work, and it’s the management team’s job to make sure that technicians feel appreciated and respected in their positions.
When there’s a real lack of recognition and appreciation in auto shops and dealerships, employees may feel ignored and overlooked. They will only stick around as long as necessary, buying them enough time to get some experience and find a job where their skills and time are actually praised.
How To Retain Automotive Technicians
We can help you find your next automotive technician, but we can’t keep them for you. That’s a job only you can deliver on. After evaluating the seven top reasons for technicians to leave, it should become clear how to retain the employees.
For a bit of help, here’s a quick review and checklist to help you provide the best work environment possible for your team:
Start with Salary and Benefits: Your technicians need to be well compensated right out of the gate. Thankfully, our comprehensive salary guide can help you find the right compensation package for your team.
Provide a Path of Promotion: Career map the various roles in the organization and outline the path to get to higher positions. Offer regular training and continuous learning so technicians can learn new skills. You should also commit to offering open job positions to existing employees before opening them up to the public.
Encourage Balance: Creating a good work-life balance in your company starts at the top. Management must model how to balance the demands of work with a personal lift. Paid time off is one way to offer rest to employees, and breaks during the day should also be prioritized.
Create a Safe Work Environment: Conduct regular risk audits and implement solid safety protocols. Make sure that your team is regularly trained on these protocols and provide resources for team members to manage stress.
Invest in Leadership: Team leadership will make or break the organization’s success as a whole. You must make more of an investment in training and regulating leadership, making sure that they have the skills needed to run the team.
Establish an Equitable System: Have clearly defined roles so everyone knows their job. Encourage the performance of team members and keep the lines of communication open if changes need to be made.
Recognize the Employees: Technicians must be rewarded for their time and efforts with regular achievement recognition and monetary compensation. Making sure your team feels appreciated can be as simple as bringing donuts to work once a week as a thank you.
Conclusion
While we are thankful for the opportunity to help you find workers, we would rather see you retain your automotive technicians after the hiring process is over.
Thankfully, it doesn’t take a lot of effort to make sure that your technicians are happy and satisfied with their jobs—some may argue that it’s even easier than going through the process of finding, interviewing, and hiring new technicians.
At Automarket, we’re here to help you find the applicants worth adding to your long-term team. Set up an environment where mechanics want to work and reach out to our team to start the hiring process.
As the top recruiting experts in this field, we specialize in sourcing highly-trained technicians for your repair shop or dealership. Receive assistance from our professionals by scheduling a quick call today to get started!
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