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The National Automobile Dealers Association (NADA) has prepared the 2016 Dealership Workforce Study

and Automotive Retail: National & Regional Trends in Compensation, Benefits & Retention to assist its

dealer members in being as efficient as possible in the operation of their dealerships. The presentation of

this information is not intended to encourage concerted action among competitors or any other action

on the part of dealers that would in any manner fix or stabilize the price or any element of the price of

any good or service.

Each participating dealership received information related to that dealership compared against data

aggregated on geographic and other bases. Other than the information from the participating dealership

(as provided in that dealership¡¯s custom report only), no individual dealership data are disclosed or

available. Also, no personally identifiable employee or other individual data, such as names or SSNs, have

been gathered and no such information is available.

Use of this Study by a participating dealership is subject to all terms and conditions of the NADA Workforce

Study User Agreement that was accepted by the dealership as a condition of participating in the Study.

NADA assumes no liability for a participating dealership¡¯s, or manufacturer¡¯s, or other purchaser¡¯s use of

the data contained in the Study.

Copyright ? NADA 2016. All rights reserved.

NADA wishes to acknowledge ESI Trends, the automotive retailing industry¡¯s leading provider of

workforce metrics, guides and trends, and HR practices. ESI Trends designed the Dealership Workforce

Study, collected and analyzed the data, and prepared custom reports for participating dealerships as well

as the overall analysis in this volume. With appreciation to the ESI Trends team:

Project Leader: Ted Kraybill, President, ESI Trends

Amanda Runkle, Project Manager, ESI Trends

Shawn Leclair, Web Developer and Database Administrator, ESI Trends

Luke Vargo, Senior Data Analyst, ESI Trends

With special thanks to Steven Szakaly, NADA Chief Economist, and Patrick Manzi, NADA Senior Economist.

Foreword

Famed UCLA basketball coach John Wooden once said, ¡°Things work out best for those who make the

best of how things work out.¡± Last year, 2015, was the best year in U.S. retail automotive history. It was

the result of vision, hard work, focus, data and decision-making. Automotive Retail: National & Regional

Trends in Compensation, Benefits & Retention is a must-read for all new-vehicle dealers as well as

automotive professionals across the industry. This 2016 Report, drawing on 2015 data, contains results

and analysis of the 2016 NADA Dealership Workforce Study. Using payroll records and questionnaire

responses provided by NADA and ATD members, the Report makes assumptions and draws comparisons

for paying competitive market wages, offering competitive benefits and managing employee retention

and turnover. The Study examines more than 60 dealership job positions, has expanded the detail on

numerous resource metrics, and continues to provide critical economic factors for consideration and

analysis. The combination of strong new- and used-vehicle sales, low interest rates, excellence in financing

customers, declining oil and gasoline prices and growing business in service departments afforded NADA

dealers their best overall year ever in 2015.

In 2015 the U.S. economy produced overall economic growth of 2.4 percent, up slightly over 2014 but

continuing to lag behind the U.S. post-World War II average annual GDP growth rate of 3.2 percent. In

2015, U.S. new light-duty vehicle sales were again one of the bright spots in the U.S. economy, increasing

5.5 percent to just over 17.3 million. The average U.S. new light-duty vehicle dealer saw increases in newvehicle sales, profits and net worth again in 2015 while experiencing tight gross margins and growing

competition at home and abroad. This Report provides its readers with knowledge to analyze and finetune their wage and benefit packages, employee retention and turnover rates and average days and hours

of operation. What truly sets the 2016 Report apart are the Executive Summary and the General Findings

and Conclusions, which discuss trends and demographics and economic metrics at both the national and

regional levels. The data and insights are thus fuel for thoughtful decision-making and comparisons

regarding HR issues and profit at the regional and national levels, and according to industry norms.

Nobel Laureate in Economics Dr. Milton Friedman strongly believed that the foundation of any free and

independent economy is the entrepreneur. He said, ¡°So that the record of history is absolutely crystal

clear, that there is no alternative way, so far discovered, of improving the lot of the ordinary people that

can hold a candle to the productive activities that are unleashed by a free enterprise system.¡± Perhaps

the most obvious and important entrepreneur in the U.S. today is the franchised new-car dealer. The U.S.

new light-duty dealer¡¯s sales volume exceeded U.S. GDP growth again in 2015 and is likely to do the same

in 2016 and hopefully in 2017. It is also likely that gross margins will remain tight and warranty revenue

will decline in 2016 and beyond. In the future, the smart dealer will seek not only to gain market share,

but also to attain the most talented and dedicated workforce from within the industry, the aftermarket

and business in general to optimize opportunities in a changing and dynamic dealership space. The

successful dealer can do this only by growing a talented workforce from within. The best dealers do not

and will not offer jobs to current and future employees; they offer careers.

It is an honor to work with NADA and ESI Trends on this vital project. These organizations have provided

unique data and unprecedented management insights to the readers of this Report. Of course, though, it

is imperative that dealers act on the data and insights, using them to improve employee and customer

satisfaction while growing the dealership¡¯s bottom line.

Perhaps the most powerful message of the Study is this: Dealers cannot profitably create and keep

customers without a talented and dedicated workforce. New-car dealers across the United States employ

just over 1.1 million employees generating just under $900 billion in new-vehicle sales revenue and

another $100 billion from more than 200 million repair orders. Simply stated, NADA dealers provide a vital

role in servicing a significant portion of the nearly 259 million new and used vehicles that are on America¡¯s

roads each day. The future of the U.S. retail automobile industry is bright and challenging; this Report

reveals the competitive marketplace with its boundless opportunities and helps dealers compete in an

industry that we see, year after year, truly is the backbone of this great economy.

Dr. Keith A. Pretty

Dr. Timothy G. Nash

President and CEO

Senior Vice President for Strategic and Corporate Alliances

Northwood University

Director, McNair Center for the Advancement of Free Enterprise

and Entrepreneurship

Northwood University

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