Recruiting & Training Cost Dealers Over $1 Billion a Year

Recruiting Costs for Auto Retailers
Let’s say 56% of the 17,838 new car dealerships (rooftops)* do recruiting for sales people, managers and other staff. That’s 9,989 dealerships.
(* Urban Science Report Jan 2014)

9,989
Average monthly recruiting expenditure per dealership for non-sales or management positions.
(Auto Dealer Monthly article on Cost of Turnover – PDF)

$3,000
Annual expenditure for recruiting costs per dealership (this does not include any recruiting company placement fees for managers or other dealership executive staff)
$ 36,000
Annual estimated expenditure for recruiting costs for 9,989 auto retailers
$ 359,614,080

Training Costs for Auto Retailers

Number of new vehicle franchises in the U.S.
17,838
Monthly average expenditure for training per dealership. Includes in-house sales and management training, 20 Group Membership costs, along with fees and related costs for attending seminars, conferences, expositions, and other training events.
$3,000
Annual expenditure for training per dealership ($3000 x 12 mos)
$ 36,000
Expenditure for 17,838 auto retailers per year

$ 642,168,000
Total spent for recruiting, hiring, and training costs for
auto retailers per year exceeds $1 Billion.

$1,001,782,080


Saving just 20% of those costs would put over $200 million back on the bottom line of dealerships and boost net revenue for auto dealers.

That means a dealership could recover $14,000 per year in this area by implementing a program that builds employee retention and cuts down on training costs.

Dealers need to implement marketing strategies that highlight their employees, bolsters their reputation, and creates greater engagment with their community.  Dealers Marketing Network offers programs like this to community auto dealers.