1. Why Recruiting in Automotive
Retail is So Hard: And the Reason
It Will Stay That Way
August 2015
It seems as if the market for highly motivated self-starters
with dreams of making big money has all but dried up.
Where did all the charming, persuasive, well-dressed
candidates go? Why is it so difficult to find salespeople with
the “it” factor? What happened to the car guys that are
energized by juggling multiple customers and chasing
down leads until they close the deal?
Recruiting. A Word that makes
every dealer and retail
automotive manager cringe.
The Recession changed the
dynamic of the labor market.
Traditional sales candidates
became risk adverse and a
generational shift occurred
propelling Millennials to the
largest group in the workforce.
Key Points
Millennials value growth, pay
and hours. In order to attract
these candidates, dealers
must adapt their human
capital strategies to include
hourly pay plans and defined
career paths.
1
2

2. 2 Crane Automotive Resources :: August 2015
“The labor market shifted and automotive retail
was on the losing end.”
1
The answer to all those questions is simple- the
labor market shifted and automotive retail was
on the losing end. In 2009, when every dealer
was consumed with simply how to survive and
frantically changing strategy, a major shift was
occurring in the labor market. The pool of
candidates previously attracted to the
automotive sales industry began running for the
hills. Why? Because the recession scared them
away from commission plans.
The Great Recession had a significant impact on
Real Estate Agents, Mortgage Brokers and
Advertising salespeople- all very entrepreneurial
careers. The prior attraction to commission plans
now seemed like a guaranteed way to go belly
up. Candidates who were making six figures in
commission roles prior to the recession were now
actively seeking salaried jobs at a fraction of
2
what they were making pre-recession. They were
craving stability and willing to give up the prospect
of big money in order to guarantee their bills would
get paid. Most of these candidates had 10+ years of
experience and would be classified as Generation
X.
The Gen X’ers becoming risk adverse was not the
only significant change taking place in the labor
market during the Great Recession- the Millennials
were beginning their ascent. By 2010 Millennials
accounted for almost 40% of the workforce. Baby
Boomers, who were known for their optimism,
exploration and achievement, were now at the
sunset of their career. Boomers knew how much
work went into growing a book of business and were
not interested in starting that journey again. With
Generation X scared of commission and Baby
Boomers no longer interested, only the Millennials
were left to recruit.
0 0.1 0.2 0.3 0.4 0.5 0.6
2005
2010
2015
2020
Traditionalists
Baby Boomers
Gen X
Millennials
Gen 2020
Bureau of Labor Statistics Employment Projections

3. 3 Crane Automotive Resources :: August 2015
byline
Lorem Ipsum
5.04
4.59
4.16
4.08
3.98
3.71
2.43
Growth Potential
Pay
Hours
Benefits
Company Stability
Industry
Community Service
What is/was most attractive to you about your first
employer out of school?
Growth Potential
Pay
Hours
Millennials Value
This is why automotive retail lost. The industry was
not (and is still not) ready for this generation. Based
on a study I conducted regarding the impact of
social media and employment branding on recent
college graduates, Millennials care about growth
potential, pay and hours, in that order.
Unfortunately for automotive retail those are the top
three complaints heard most often in exit interviews
of sales and service professionals. “There is no
defined career path. I’m not making enough
money. The hours are too long.” Sound familiar?
Continuing to use the same tired recruiting
strategy is like trying to sell cars without the
internet. Sure you may sell a few cars to walk-ins
but the competitor down the street with a
cutting edge online strategy will sell more. They
have more visibility and a larger customer base.
The same concept applies to recruiting. The
traditional candidate pool is shrinking and the
new pool has different kind of fish. If you don’t
change your bait don’t expect any bites.
In order to attract Millennials dealers need to
rethink their human capital strategy.
Commission plans need to be replaced with
higher guarantees or hourly plans with a bonus
component. Career paths must be defined so
new employees know what they are working
towards. Performance expectations need to
broaden in scope with units sold being only
one component of a larger standard.
Professional development needs to be a main
focus and it can’t be solely product related.
C. Crane Thesis 2015

4. 4 Crane Automotive Resources :: August 2015
1
Growing professionally is their
expectation. Without it they will
undoubtedly move on to a new
opportunity.
Millennials are not afraid to work
the hours necessary to be
successful but will demand some
form of work-life balance. The
problem with retail coverage and
hours can be solved without
increasing payroll costs while
simultaneously reducing the
number of employees on the floor.
The answer lies in the customer
experience. Eliminate the silos and
replace them with cross-functional
layers. What does this mean in
laymen terms? Empower one
employee to do the whole deal
from start to finish. Replace high
paying desk and F&I Managers
with Junior Managers whose only
job is make sure every customer
experience stays on track.
Leverage technology to make the
process go faster. Hold your
employees accountable for
increased volume and reward
them with less hours. No more
standing around.
2
With e-commerce knocking at the
door and customer behavior
continuing to gravitate away from
the traditional process, dealers need
to acknowledge the world is
changing. What does even greater
price transparency mean for my sales
process? What will finance
transparency mean and how far
away can that be? What if I can’t
rely on (or find) closers to hold gross
by winning the negotiation? If I can’t
rely on F&I Managers to save the deal
with backend gross how do I survive?
You change your mindset.
You adapt. You evolve. You
start today with your human
capital strategy.
Crane Automotive Resources
has the expertise to guide you
through these complex
challenges. Our consultants
have extensive dealership
experience and have
successfully led operational
and human capital changes.
Candice Crane was the head of
HR, Talent Acquisition and
Training at one of the largest
privately held dealership groups
in the Midwest. Candice has
over 10 years of experience in
Operations and Human
Resources and holds a Masters
in Organizational Development.
ccrane@craneautohr.com
Millennials are just as goal oriented as previous
generations but not nearly as patient.
“Eliminate the silos and replace them with cross-functional
layers. Empower one employee to do the whole deal from
start to finish.”