When we asked dealership HR leaders what keeps them up at night, the most common answer wasn’t surprising: turnover and retention. This issue has been a persistent thorn in the side of dealerships, but the responses highlight just how disruptive and costly it really is.

The True Cost of Turnover

Turnover in a dealership doesn’t just mean one employee leaving. It means:

• Lost productivity: Teams are slowed as others cover gaps.
• Increased recruitment costs: Every rehire requires new ads, interviews, and onboarding.
• Customer experience impact: Clients notice when their trusted advisor or service rep disappears.
• Morale drain: High turnover signals instability, which makes engaged employees question their own future.

Many leaders shared that building a reliable bench of future managers keeps them up at night. Without succession planning, turnover at the leadership level can create a domino effect that is difficult to recover from.

Why Turnover Hurts More in Dealerships

Unlike other industries, dealerships rely heavily on long-term employee-customer relationships. A salesperson who leaves takes years of relationship-building out the door. Service advisors who churn mean customers need to re-explain their issues again and again. That churn damages loyalty.

Practical Solutions

The good news is there are proven strategies to reduce turnover:

• Structured Onboarding: The first 90 days set the tone. Employees who feel supported early are far more likely to stay.
• Employee Engagement: Regular surveys and feedback loops give leaders a chance to act before dissatisfaction turns into resignation.
• Clear Career Paths: Employees who see growth opportunities are more committed.

Turnover will never disappear entirely, but with the right tools and intentional strategy, dealerships can shift from reactive replacement to proactive retention — and finally get a better night’s sleep.