Industry Voices | Engaging Gen Z Talent in Auto Retail

In the rapidly evolving landscape of auto retail, understanding the motivations and satisfaction levels of the workforce is more crucial than ever. The CDK Dealership Workplace Study sheds light on these aspects, focusing particularly on Generation Z (ages 18–25). This cohort, which made up a significant portion of the study’s respondents, presents unique challenges and opportunities for automotive dealership owners and HR departments.

The “Meh” Phenomenon

According to the study, nearly three-quarters of all respondents expressed satisfaction with their jobs. However, it’s worth noting that one-third plan to switch jobs within six months. Within this broader context, Gen Z workers exhibit markedly different attitudes. Only 55% of Gen Z respondents are satisfied with their current positions, compared to 74% of others. A significant 43% remained indifferent, reflecting a broader trend of detachment that many in this generation feel toward their work environment.

When it comes to motivation, Gen Z seems to lag behind older generations. While 51% report being somewhat motivated, and 4% extremely so, a substantial 44% remain neutral. This indifference could be a reflection of their dissatisfaction or perhaps a lack of engagement with their roles.

Compensation and Satisfaction

A recurring theme in the study is Gen Z’s lukewarm response to compensation. Nearly half of the Gen Z respondents neither agree nor disagree that their income reflects their effort, suggesting a disconnect between perceived value and reward. Similarly, 35% of Gen Z respondents felt ambivalent about whether their income matched their skill level.

This ambivalence extends to other aspects of job satisfaction. When asked about what contributes to their job satisfaction, Gen Z was more hesitant to identify key motivators compared to older workers. However, they did emphasize the need for adequate feedback from management as a critical lever of satisfaction, with 26% highlighting its importance compared with 20% of all respondents.

Stress and Work-Life Balance

Stress appears to be a significant issue for Gen Z, with 54% citing it as a source of dissatisfaction compared with 47% of all respondents. The difficulty of taking time off was another area of concern, with 30% of Gen Z respondents reporting it as unsatisfactory against 24% of the total.

Despite the challenges, Gen Z shows a pragmatic side, particularly regarding benefits. A higher percentage of Gen Z respondents (65%) consider a retirement plan as an important contributor to job satisfaction, slightly more than the overall respondent pool. They are equally attentive to medical, dental and vision insurance, long-term disability and life insurance benefits.

Reducing Churn With Increased Management Attention

The study highlights a potential strategy to mitigate high turnover rates among Gen Z workers: personalized attention and engagement from management. While managers may initially balk at this idea, the reality is that 39% of Gen Z respondents are actively seeking new opportunities within the next six months, compared with just 24% of the total sample. This willingness to explore new positions signifies that while Gen Z may appear indifferent, they are actively considering their future in the automotive retail industry.

Driving Success With Gen Z in Mind

For automotive dealerships, understanding and addressing the specific needs and preferences of Gen Z employees is more than a matter of workplace satisfaction; it’s crucial for reducing churn and maintaining a competitive edge in talent management. By fostering an environment that recognizes their desire for feedback, acknowledges stressors and offers competitive benefits, dealerships can better engage this generation and harness their potential for growth and innovation in the industry. By recognizing these elements, dealership owners and HR departments can begin to craft strategies that not only attract Gen Z talent but also retain and inspire them to excel in their roles. The future of auto retail may very well depend on how effectively we adapt to the aspirations and expectations of this emerging workforce.