The automotive retail world has never been more competitive. But the toughest challenges are not happening on the sales floor. They are unfolding in the break room, the service bay, and inside every leadership meeting.

The dealerships that will win the next decade are those that face the real people and culture issues head-on.

In conversations with top HR and operations leaders across the industry, two consistent challenges stand out: the escalating talent shortage and the complex dynamics of a multi-generational workforce. Both factors are driving turnover, straining resources, and limiting dealerships from reaching their full potential.

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HR Challenge 1: The Talent Shortage in Dealerships

Every dealership is fighting the same battle: attracting and keeping great people.

Technicians, service advisors, and high-performing sales professionals are in short supply. Candidates know their worth, and they are looking for more than pay. They want purpose, leadership, and an environment that helps them grow.

Jennifer Lennox, CHRE , VP of People at Foss Group, put it simply:

“If we’re not authentically engaged, if we’re not truly living our culture and values, they have other options. They will walk out the door.”

What This Means for Dealerships

Money still matters, but it no longer seals the deal. The dealerships that keep talent do three things well:

• Build a culture people can actually feel, not just read about
• Make career development visible and achievable
• Show leadership presence early, starting from the interview stage

Engagement begins long before onboarding. When employees see genuine investment from leadership, retention becomes a byproduct of trust.

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HR Challenge 2: Managing a Multi-Generational Workforce

Many Dealer Principals and HR leaders call this their biggest internal challenge.

Modern dealerships house two very different workforces: long-tenured veterans and a younger, digitally native generation. The result is conflicting expectations and communication gaps that affect productivity and morale.

As Vicki Carver, Director of HR at Myers Automotive Group, noted:

“One of our biggest challenges is the difference in the generations... there's a real big cultural clash there in terms of communicating, expectations... and recognition.”

Where the Friction Shows Up

• Communication styles: Younger staff expect instant feedback and digital access, while older team members prefer face-to-face discussions.
• Career expectations: Emerging talent seeks faster progression, clashing with traditional “wait your turn” mindsets.

Unaddressed, these gaps breed friction, lowering productivity, morale, and retention.

The Root Cause: Inconsistent Leadership

Both HR challenges trace back to one root cause: inconsistent leadership. Managers overloaded with tasks fall into reactive management, focusing on issues rather than developing people. This unpredictability erodes trust and engagement.

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The Solution

• Invest in leadership development that prioritizes coaching, accountability, and communication.
• Equip managers with HR automation tools that give them time to lead instead of chasing paperwork.
• Build a culture of consistency across every rooftop through unified systems and shared values.

The Way Forward: Automate, Centralize, Lead

No dealership can fix culture or retention while HR teams are buried in manual work.

Automation and centralization free leaders from repetitive tasks and create a single source of truth for policies, onboarding, and performance. With clear systems in place, leaders can spend their time where it matters most: developing people instead of managing paperwork.

Technology gives dealerships the structure they need for consistency, and consistency is what sustains great culture.

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Watch the Full Webinar: “The Future of Dealership HR”

See how top-performing dealerships are transforming HR with data and automation. Watch the full session of, “The Future of Dealership HR: What Winners Will Be Doing Differently by 2026.”