One of the most common complaints in the car dealership world is, “I can’t do coaching or training; I have too much turnover.” It’s easy to see why managers in the automotive industry feel this way. High turnover rates, combined with an ever-evolving sales environment, create a situation where it feels like you’re constantly putting out fires rather than focusing on long-term growth. Yet, some of the most successful dealerships consistently invest in coaching and training their teams—and the results are clear: lower turnover, improved morale, and, ultimately, better business performance.
Why Coaching and Training Matter in Dealerships
In many high-grossing dealerships, the belief is that effective coaching and training lead to less turnover. This is in stark contrast to the mindset of managers who try to make do with the “quick fix” method. The reality is that without a focused effort on skill development and personal growth, managers are only managing temporary solutions. A manager’s true job is not just to enforce accountability, but to guide, mentor, and develop their team members into the best versions of themselves.
Take, for instance, a situation where a manager is asked to oversee a team of finance managers, with the sole directive being, “Hold them accountable.” This approach, while well-meaning, completely ignores the critical element of training and development. Without ongoing coaching, there’s no opportunity to address areas of weakness, discuss challenges, or help the team develop a true understanding of their roles. Simply cranking up the accountability can feel like a power struggle, rather than a supportive approach that fosters growth and collaboration. This lack of investment is a surefire way to lose great talent and undermine the dealership’s culture.
The Role of a Manager as a Coach, Not Just a Boss
What is often desperately needed in the car dealership industry is a shift in mindset. Effective coaching is about recognizing that each team member is different and may require a distinct approach to achieve their maximum potential.
For example, at the end of a team meeting where changes are introduced, it’s critical to ensure everyone understands the “why” behind those changes and feels empowered to embrace them. Simply dropping new policies or changes and expecting the team to immediately get on board is unrealistic. Instead, a great manager will sit down with their team, asking questions like:
- “Do you understand what we’re doing here?”
- “Do you have any questions on how this affects your work?”
- “What do you think might be the hardest part for you?”
- “Is there anything we can do to help you get through this change?”
This approach—often referred to as “player-coaching”—involves the manager directly engaging with their team, providing guidance and support, and helping them work through challenges. The goal isn’t just compliance but actual understanding and commitment. However, the way this coaching looks will vary based on the individual. For a millennial or Gen Z team member, a positive and easygoing nudge might be effective, while a more seasoned Gen X or Boomer may respond better to a firm “get moving, or move out of the way” type of coaching. The key is flexibility: a good coach adapts their style based on the person they’re coaching, their relationship with that person, and their unique needs.
Coaching vs. Training: The Difference Matters
It’s essential to distinguish between coaching and training, as the two serve different but equally important purposes in the dealership environment.
Training is about transferring new knowledge, skills, or information to someone. A math teacher, for example, might train students on how to solve equations, teaching them a series of steps in a structured and sometimes strict manner.
Coaching, on the other hand, focuses on enhancing existing knowledge and skills. It’s about working alongside team members to help them develop their abilities, overcome challenges, and refine their craft. In the context of a car dealership, this means a manager not only overseeing training but actively working with their team members to ensure that the lessons they’ve learned are put into action on the sales floor.
Too often, dealership managers fall short when it comes to training—they might know how to enforce the rules but not how to truly impart new skills or knowledge. However, where they can excel is in coaching: monitoring their team’s progress, offering constructive feedback, and providing the ongoing support necessary for improvement.
Reducing Turnover Through Effective Coaching
A positive and supportive culture is one of the most powerful tools for reducing turnover. Employees who feel valued, supported, and invested in are far more likely to stick around.
For dealerships, one of the key factors in retaining top talent is placing team members where they can succeed. This means understanding the individual strengths and weaknesses of your staff and adjusting roles as necessary. Sometimes, a great salesperson might aspire to become a finance and insurance (F&I) manager, but simply assuming that someone will excel in a new role based on their previous success is risky.
A smart approach, used by one dealership I know, is to offer temporary assignments. Rather than making a permanent change, they give the salesperson a chance to “test drive” the F&I position. This allows both the dealership and the employee to see if the new role is a good fit before committing. This type of flexibility not only ensures that employees are well-placed but also communicates that the dealership is committed to their long-term success.
The Bottom Line: Investing in People Pays Off
High turnover is an expensive and disruptive issue for car dealerships, but it’s not something that can be solved through short-term fixes like adding more accountability or upping the pressure. Instead, the answer lies in effective management coaching. When managers take the time to coach and mentor their teams, they create a positive, supportive culture that fosters growth, reduces turnover, and improves overall performance.
In the end, the most successful managers in the automotive industry are those who recognize that people are not just tools to get the job done, but individuals with unique needs, strengths, and areas for growth. By investing in coaching, listening to their teams, and providing the support necessary for them to succeed, managers can build a dealership culture that stands the test of time.
The future of the automotive industry depends on people, and the best managers are those who recognize that nurturing talent is as critical to success as any sale. So, next time you’re faced with the issue of turnover or lack of engagement, ask yourself: Are you coaching, or are you just managing?