B ut perhaps the number one reason they leave is perceived opportunities which can include better working conditions. Says Dupaquier, “I estimate 75% leave because of pay plan disagreements where a dealer has cut the commission or made the job much harder. The other 25% leave for better working conditions”. Tom Reddin works with scores of dealers on the east coast in his capacity as Senior Business Development Manager for North American Automotive Group based in Cumming, Georgia: “At least 40% turnover exists in the stores my company services because many believe the grass is greener on the other side. But what they overlook is that grass still has to be mowed, fertilized, and watered. The grass ain’t always that much greener he says. “I’d say upwards of 75% of those managers change stores believing things are better elsewhere when in fact, similar problems exist there too”. And pay is only a part of it. “Though the pay plan may seem great on the surface, there will be other obstacles not easily identified in the initial interview. These aren’t viewable until you’ve worked there for a while. Pretty soon, the headaches return after the shine has worn off and you find yourself wondering if the move was worth it”. Dale Patten is an F&I Development Manager and Academy Instructor for Great Lakes Companies in Portage, Michigan: “I have to agree with my colleagues on this. A 40% annual turnover rate seems about right with a large part of the remaining 60% accepting the misery of long grinding hours”. He continues “Pay rates, hours, and better opportunities round out the top three reasons employees jump ship in my experience. Additionally, unrealistic expectations often drive them to greener pastures because of working conditions. This is usually attributed to the processes that link sales, the desk, and F&I which can often break down due to poor implementation”. Patten says the problem runs all the way to the top. “Dealers bear their fair share of blame in this too. Attending a 20 Focus Group meeting and getting wowed because another dealer’s F&I department is $300 higher per copy can be frustrating to them”. “So, they return home and haul in their finance managers demanding more without taking the time to perform a study of what’s currently happening followed up with an action plan”. He surmises how important this is. “The disconnect from sales to F&I can be huge because everyone wants to deliver the car at max profit and if the problems aren’t identified, then nothing will change. This dysfunction can cause an F&I manager to pull the plug and seek employment elsewhere which is why simply demanding more output without first understanding what’s going on can be off-putting to staff”. 6
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