As pandemic eases, hunt for talent will intensify

Permanent shifts in dealership operations have taken place because of the coronavirus pandemic. But one constant is the set of traits auto retailers should seek in their next generation of leaders.

That was a key message shared by dealership executives and a hiring expert last week during an Automotive News Retail Forum: NADA virtual discussion about leadership.

Dealers should be honing their hiring and retention strategies now to be ready as the pandemic eases. Many in the industry may not fully appreciate the level of pent-up demand that exists on the consumer side and how business will further rebound as the economy continues to open up, said Adam Robinson, CEO of dealership recruitment technology company Hireology.

"We are about to enter the craziest war for talent anyone has ever seen," Robinson said. "Get ready. It is going to be bananas."

The U.S. dealership business has seen large shifts in employment since the COVID-19 pandemic took hold in the U.S. a year ago. Auto retail jobs have been reduced, and much of the change should be permanent so that dealerships can operate more efficiently, Robinson said. He estimated that dealership job counts should be 5 to 7 percent lower than pre-pandemic levels. Sales representatives who sold 11 or 12 vehicles per month before the crisis began should now be targeting 15 to 17.

That's because after government- mandated shutdowns early in the pandemic were lifted, dealers discovered they could get more done with fewer people on the floor, he said.

Also, salespeople were making more money. The shift to more digital and remote sales has contributed to the productivity gains.

The pandemic also accelerated workplace flexibility by five to 10 years, Robinson said, and that change is here to stay.

"The work force today wants flexibility," he said. "They want to work how and when they're able to or want to."

Even if dealerships keep their staffing numbers permanently lower, good help is always needed in an industry in which the average employee turnover rate was 46 percent in 2019, according to the latest National Automobile Dealers Association Dealership Workforce Study.

Dealers are not expecting a surge of top candidates to come streaming through their doors.

"It's going to be really hard to acquire talent," said Zhuqiong Alice Cao, general manager at John Eagle Acura in Houston.

Cao's store is approaching the potential dearth of talent by cross-training employees from different departments to "create leadership within," she said.

One selling point of auto retailing that widens the candidate pool, panelists agreed, is that a college degree is not necessary to be successful. A potential surge in post-pandemic hiring also could benefit the industry by providing more opportunity to add diversity to the traditionally white-male-dominated sector.

"You don't need a college education or $100,000 worth of college debt to be successful in the car business," said Michelle Primm, managing director at Cascade Auto Group in Cuyahoga Falls, Ohio. "You can be green, purple, red, white, gay, straight."

Retailers seeking fresh talent should look for people who are themselves flexible and willing to learn, panelists said.

"Having that think-like-an-owner attitude, wanting to learn, is so important," said Angela Pritchard Spiteri, COO of Pritchard Cos., which operates six dealerships in Iowa.

Rising leaders should also round out their skill sets, Primm said.

"One of the things that I think is really important for someone that is an up-and-coming leader is to figure out where you're weakest," she said.

If, for example, a store manager knows finance and insurance thoroughly but is unfamiliar with fixed operations, "go learn fixed ops," Primm said.

For the next generation of leaders, Primm said she's looking for people who keep their eyes and minds open to solutions. "So listening skills," she said. "And no fear."

As dealers look to hire, Boris Lopez, director of South Dade Toyota and South Dade Kia in Florida, cautioned that they should keep in mind that the current high-profit business environment can't last forever.

"The industry's going to be interesting when we don't have what we have right now, when we don't have the profit we're making today," Lopez said.