The US workforce seems to be struggling to tie down young, highly sought after, yet elusive employees – the millennial.
This generation of the labor force is tech savvy and not receptive of the old deal that the longer you stay, the more marketable you become. Most of these new employees only stay for a year or two before quitting, and for some time, employers thought that they were hiring the wrong people.
Reports indicate that the turnover of millennial employees costs the United States economy more $30 Billion a year. The auto industry bears the brunt of the high millennial turnover. A 2016 NADA Dealership Workforce showed a 52 percent turnover rate that year. Compare the national rate of 21 percent to that figure, and you will see why there have been complaints in the auto industry.
But all hope isn't lost yet; there are ways auto dealers can use to reverse this situation. Auto dealers don't have to keep hurting their bottom line through their failure to retain this generation of extremely talented workforce. Let's take a look at some of the strategies auto dealerships can use to attract and maintain millennial talent.
Provide A Career Vs. a Job
One of the biggest reasons an employee won't stick around a company is because they don't see a future at the company. What's the point of staying at a company where you don't see yourself advancing your career? Over the years, millennials have been portrayed as restless job hoppers, and in a bid to break up this preconceived notion, they are looking for opportunities to climb to the highest levels in their organizations.
Therefore, a good way of ensuring they stick around is to give them a true opportunity geared towards career advancement. Help them grow and save for retirement through IRA, self-directed IRA in particular. But, what are the benefits of a self directed IRA? They are multiple, for example, more flexible investment options for their retirement funds.
Get the Right Fit
Sales performance in the auto industry is determined by empathy and ego drive, the two basic qualities for the success of a good salesperson. Studies have shown that among all values, millennials value empathy the most. This generation leads an empathetic view focussing on the environment as well as social justice and responsibility. As an auto dealer, focus on tapping the potential of millennials looking to elevate their social status, for personal or ego-driven purposes. When you have the right fit, they will stay.
The millennial generation accounts for 38 percent of the US workforce; they are not kids anymore. By 2025, millennials will constitute about 75 percent of the workforce. Auto dealers need to pay attention to the millennial workforce, and in addition, engage them once they're hired.
Forget About The 9 To 5 Schedule
Do you know why the Silicon Valley attracts the highest number of millennial workers in the US? Companies in the Silicon Valley are perks galore and with their casual dress codes and flexible working hours, which are millennial-friendly. Work-life balance is important to the millennial generation and will prefer to work in an environment that comes with a certain degree of flexibility.
For instance, many companies in the Silicon Valley allow their employees to individualize their schedules. You can slip out for an hour of Zumba on the workday or choose to work from home if you don't have client meetings. As an auto dealer, you may not have the luxury of matching that level of flexibility, but you can work with available options to make your dealership more attractive for millennial talent.