ATLANTA -

While perhaps not as light as their inventory levels nowadays, dealerships appear to be short on personnel, too, especially in the departments that generate the most store revenue.

Like many industries, Cox Automotive indicated, the U.S. automotive retail segment is struggling to find enough employees for dealerships to be fully staffed, much less meet their 2021 growth goals.

In fact, according to the 2021 Cox Automotive Dealership Staffing Study released on Monday, 72% of franchised dealers surveyed said that finding and hiring the right employees is currently a challenge.

Furthermore, the study showed that a majority of dealership leaders — approximately 65% — report that they plan to increase the total number of employees in the dealership this year, while approximately 34% said they plan to maintain their staffing level.

And skilled labor to keep the service drive flowing and reconditioning in motion is of great importance to dealerships.

Cox Automotive discovered that expanding the number of service technicians is the highest priority for dealership leaders, with 60% planning to increase the number of service technicians this year, followed by new-vehicle sales associates (54%) and used-vehicle sales associates (48%).

Analysts pointed out that dealers’ desire to grow their operations comes at a time when business is strong.

According to the Q2 Cox Automotive Dealer Sentiment Index, opinions related to the current market reached a record high in Q2 for both franchised and independent dealers, and the profit index set a record high, as well.

Cox Automotive noted that the three-month market outlook index reading is an increase from last quarter and — perhaps even more importantly — equal to Q1 2020, which was the final pre-COVID-19 reading.

“While the outlook for dealerships has never been better, dealers state that finding employees is a challenge due to people not returning to their positions or the workforce post-pandemic,” Cox Automotive senior industry intelligence manager Angela Drake said in a news release highlighting the staffing study.

“The traditional lack of interest in working at dealerships is exacerbated this year by pandemic-related stimulus money and enhanced unemployment benefits,” Drake continued. “The good news is that our study found overall interest in working at dealerships is growing, and a growing number of employees in non-automotive jobs view their skill sets as transferable to the dealership.”

Job seekers often have skills dealers want

When asking potential job seekers why they would not want to work at a dealership, the Cox Automotive study showed that 32% indicate they did not have the necessary skills.

However, the study also determined that heavy digital dealers — operators that Cox Automotive classified as dealers who significantly invest in digital retailing tools — said the right employee doesn’t need automotive experience.

Instead, analysts shared dealers are looking for individuals with the following characteristics:

— Willing to go above and beyond their specific job responsibilities

— Good communicators across all communication channels (verbal, written, video)

— Can easily adapt to a quickly changing work environment

— Tech-savvy and comfortable with learning new technology

“As pandemic unemployment assistance winds down, dealers have the opportunity to promote their job openings to a new group of job seekers who may not have considered working in a dealership,” said Bob Kostkan, senior director at Cox Automotive University.

“Job seekers with restaurant and retail experience usually have the mindset, potential and skills to be successful at a dealership but may not realize that automotive experience isn’t a prerequisite for many of the open positions,” Kostkan continued in the news release. “The most successful dealers offer employees onboarding and comprehensive career development training beyond what their OEMs offer to enhance engagement and retention.

“In fact, the top two most popular training enhancements indicated in the Dealership Staffing Study for now and into the future are online/digital tools and communication skills,” Kostkan went on to say.

Study background

Analysts mentioned that data for the Cox Automotive Dealership Staffing Study is gathered via online surveys.

Cox Automotive said the results were based on 440 franchised and independent dealership employee respondents, comprising 151 individual contributors, 127 department managers and 182 dealership leaders, and 394 employees at non-dealership companies, comprising 147 individual contributors, 63 department managers, 147 leaders and 37 unemployed active job seekers.

Analysts added that respondents were based across the country and responded to the survey between Feb. 23 and March 10.

The entire 2021 Cox Automotive Dealership Staffing Study can be downloaded via this website.

More details about Cox Automotive University are available online.