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Dealerships hiring more women, younger workers, NADA says

Thursday, December 26, 2013 - 09:00
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U.S. automotive dealerships are hiring more younger workers and women, and remain relatively high-paying employers compared to other private sector industries.

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Those are the results of the National Automobile Dealers Association (NADA) second annual industry report on car and truck dealership employee compensation, benefits, retention, and turnover. The 2013 Dealership Workforce Study was produced in partnership with DeltaTrends, and is based on data from 290,000 car and truck payroll records from more than 2,240 dealerships.

“This is by far the most comprehensive and timely study on the dealership workforce ever produced, and serves as a tremendous resource to help dealers step up their game to gain an edge on the competition,” says NADA chairman David Westcott.

According to the 2012 data, on average dealership employees earn 27 percent more than the average weekly earnings of all U.S. private sector employees.

In terms of new hires, the number of females hired by dealerships increased by two points to 19 percent in 2012. The number of Generation Y employees (those born after the early 1980s) also increased, and now stands at 23 percent of the dealership workforce, which is roughly equivalent to the estimated ratio of employed Gen Y workers in the total U.S. workforce.

"The most surprising trend to me was the significant increase in the number of younger employees hired by dealerships in 2012," says Ted Kraybill, president and founder of DeltaTrends. "That number jumped from 30 percent to 41 percent of all new hires."

According to Kraybill, dealerships are likely pulling a significant number of new hires from the unemployed population, versus hiring employees away from other dealerships. "So it's not a coincidence that the percent of new hires that are Generation Y is equivalent to the government estimates of the unemployed Gen Y workforce," he says.

As for the increase in women in the workforce, Kraybill says that the percentage of new female hires went from 17 percent in 2011 to 19 percent in 2012, resulting in a one point rise in the total number of active females employed at dealerships.

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