Employee turnover at U.S. car dealerships dropped steeply last year, reports the National Automobile Dealers Association, which credits dramatically increased compensation.
Turnover across all departments fell from 46% in 2020 to 34%, its lowest level in the 11 years that NADA has produced its Dealership Workforce Study.
Average earnings at participating dealerships exceeded $100,000 for the first time. Average weekly earnings rose 27% over 2020 compensation.
The study also collects data on employee demographics, hiring trends, operating hours and other metrics.
The compensation gains reflect market conditions of low inventory and higher vehicle price tags, resulting in higher sales commissions. As inventory thaws and prices follow, compensation and turnover could revert to prepandemic levels.
READ MORE: New-Vehicle Prices Set Record in July 2022 as Inventory Improves Year-Over-Year and Luxury Share Remains Elevated
Originally posted on Auto Dealer Today
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