The automotive industry seems to be experiencing a phenomenon known as the “Great Resignation,” where many employees are quitting their jobs in search of better opportunities. This trend is not unique to the auto industry, but it‘s a holdback all the same.
It’s important for auto industry employers to focus on employee retention strategies to keep their valued employees from leaving. Read further for some tips on how to improve employee retention in the auto industry.
Offer Competitive Wages and Benefits
According to a study by the National Automobile Dealers Association (NADA), the automotive industry has a turnover rate of around 40%. One of the main reasons for this high turnover rate is inadequate compensation.
Offering competitive wages and benefits packages is crucial in retaining employees. According to a survey by Glassdoor, nearly 60% of employees would take a job with lower pay if it offered better benefits. This alone can make a big difference. While you cannot predict everyone’s behavior, many employees simply need one more good reason to stay.
Provide Opportunities for Career Growth and Development
Another way to improve employee retention is to provide opportunities for career growth and development. Many employees leave their jobs because they feel they are not growing or advancing in their careers.
By providing training and development programs, mentoring, and opportunities for promotion, employees are more likely to stay with the company long-term. Pushing for your staff to get their ASC certification and beyond is a good way to help them grow. Paying for the training is even better.
Creating a positive work culture is essential in retaining employees. According to a study by Deloitte, 94% of executives and 88% of employees believe a distinct workplace culture is important for business success. A positive work culture can be created by promoting work-life balance, recognizing employee achievements, and encouraging teamwork and collaboration.
Foster a Positive Work Culture
When people don’t feel like they need to walk on eggshells at work, that’s a big help for them. Moreover, striking that balance between friendly and “I’m still your boss” is very important. Work on your own leadership skills to make sure you can do your job well without alienating the team.
Provide a Safe and Healthy Work Environment
Providing a safe and healthy work environment is also essential for employee retention. According to the Occupational Safety and Health Administration (OSHA), work-related injuries and illnesses cost U.S. businesses $170 billion per year.
This goes far beyond saying you want to establish a safety culture. Your team needs to live in a safety culture. They need all the safety gear that’s appropriate for the job, and they need more and more training. Every educational tool you can provide is important.
Contact Liberty Woodland Hills for Help With Auto Shop Insurance
If you own a tire shop or other peripheral business in the auto industry, it’s important to carry the right insurance coverage to protect your business and your employees. Contact Liberty Woodland Hills today for more information on how we can help you find the right insurance coverage for your auto industry business. We’re happy to review your current coverage, seek new quotes, and partner with you in your success.