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Here’s Why Millennials Don’t Want to Work at Car Dealerships

Here are the changes dealerships can make to attract the right candidates

Car dealerships are having a Millennial problem, but not for lack of sales: Millennials don’t want to work there.

With Millennials as a majority generation in the workforce, nearly 60% of all new dealership hires are now Millennial-aged workers. However, more than half of those new hires turn over annually, according to a study by Hireology, a talent and management firm.

In fact, according to the Wall Street Journal, Nissan Motor Co. reported a 100% turnover for sales staff at its dealerships in 2017. That means some positions are turning over more than once a year, a rate that is costly for dealers in both time and money.

So how can dealers make Millennials both interested and invested in a career in car sales?

Pay a flat salary

The primary reason Millennials are averse to working in dealerships is that the job is typically commission-based, and many Millennials are looking for jobs with stable, guaranteed pay. With so much debt weighing on their shoulders, it comes as no surprise that Millennials would shy away from a job where pay is conditional.

According to the WSJ, more dealerships are beginning to not only increase pay and make it less tied to specific sales goals, but also shortening workday hours and offering free college tuition for employees who stay.

Modernize the image

Many Millennials have a certain preconceived notion of what a car salesperson looks like and sounds like. Millennials greatly value transparency in their own shopping, especially since so much research and price-comparison can be done online, so it’s no surprise that they would be averse to a job that seems to rely on persuasion.

In order to eliminate that outdated image, many dealers are instituting no-haggle policies, where the dealer sets an advertised price and sticks to it, relieving salespeople from having to negotiate to complete a sale.

Want to Solve Your Gen Z Challenges?

Solving this exact challenge is why we at the Center for Generational Kinetics work with so many dealers, dealer groups and OEMs. We are passionate about solving this challenge for the auto industry and all the Millennials who could have s great career in the industry

Let us know how we can help you. Send us an email or give us a call and we’ll be happy to provide a little information for you to review.

Keep the conversation going. Follow The Center on Instagram @TheGenHQ or on Twitter @GenHQ. We are passionate about sharing our latest generational discoveries!

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