Hireology Blog - Insights for better hiring & HR


HR Challenges Facing the Auto Industry in 2016

Posted by Erin Borgerson on December 4, 2015

shutterstock_299485670HR Challenges Facing the Auto Industry in 2016

Within the automotive industry, human resources departments are tasked with identifying, recruiting and developing talent that ranges from salesmen, mechanics to management teams. By keeping dealerships and auto body shops aware of the challenges they face, HR professionals and business owners stand to improve the performance of their businesses as they head into the New Year.

Today, Hireology reviews a few challenges that HR professionals in the automotive industry should prepare for in 2016.

A Growing Turnover Rate

Turnover, or the rate at which employees leave the workforce and are replaced, is consistently a major HR problem in the automotive industry. According to The National Automobile Dealers Association 2015 annual industry report, total dealership employee turnover increased one point increased 35 to 36 percent last year, while sales consultant turnover increasing from 62 to 66 percent.  Auto Dealer Monthly suggests that automotive businesses take a closer look at their turnover metrics and identify the patterns and causes of turnover. Once these patterns are identified, HR professionals can take steps in hiring strategically for the long haul.

A Skills Shortage

With older workers reaching retirement and younger workers becoming harder to find, there is a looming skills shortage on the horizon. While companies in the automotive industry are doing their best to develop new talent, there is a prominent skills gap due to the fact that specialties needed today are ever-evolving. According to Kelly Global Workforce, there is now a heavier emphasis on electronics, embedded software and systems and fuel-efficiency work than there was just five years ago.

Developing Leaders

Along with a skills shortage, there is also a lack of cultivating and training leaders that seems to be challenging the automotive industry. With turnover rates so high, employees end up cycling out of jobs before senior staff even have the chance to effectively mentor them. The Kelly Global Workforce Index suggests that these companies establish a proactive knowledge transfer and acquisition strategy that includes things like mentorships, apprenticeships and training programs that allow companies to invest in  and shape leaders for the future of their businesses.

How Hireology Can Help

If your business is facing any of these HR challenges, Hireology can help you streamline the process and set you up for success from the start. With tools like background checks, personality assessments and interview scorecards, Hireology will provide your HR department with the proper infrastructure to make sure you find and keep the right addition to your business. For more information on how Hireology can give you the tools it needs to find the right person for the job, contact us today.

Discover the power behind having a smarter process for your dealership hiring by downloading the free eBook below!

Hireology ebook

Talent Management, Automotive Industry

Erin Borgerson

About the Author

Erin is the Director of Marketing, Crisis Controller and Culture Ambassador (the last two titles she gave to herself) who joined the Hireology team in April of 2012. As a certified Inbound Marketer, Erin manages Hireology's marketing department, the Hireology Blog, and media relations. She is also a co-leader of the Chicago Hubspot User Group which brings together Hubspot users from around the Chicagoland area. Erin set off to Chicago after graduating from Western Michigan University. In her spare time she can be found shaking it in a Zumba class, reading a bestseller, or drinking a craft beer on her Wrigleyville porch.