The automotive retail landscape is no stranger to change. Every year brings some level of the unknown to the dealership, but 2025 has been particularly turbulent. Dealers have had to deal with a shifting economy, ever changing regulations, and inventory challenges, all while trying to keep track of how consumers are feeling. Through it all, dealership success hinges on its most valuable asset: its people.
The CDK 2025 Dealership Workplace Study provided a comprehensive look into the state of the dealership workforce, revealing an encouraging picture of rising job satisfaction and improved retention, but still one full of new challenges for store leadership to navigate.
A Workforce More Satisfied and Stable
In a slight surprise, the study revealed that dealership employee job satisfaction has jumped to 82 percent, a notable increase from 74 percent in 2024. This rise in contentment is accompanied by a marked improvement in short-term retention. The number of employees planning to leave their jobs within the next six months has dropped from 31 percent last year to just 22 percent in 2025. This means that nearly four out of five employees have no immediate plans to leave their current dealership.
So, what is driving this newfound satisfaction? While strong compensation is always a factor, it was not the top reason cited by employees. Instead, the leading contributor to job satisfaction was the enjoyment of working with their team. This represents a major shift from the previous year, when team dynamics ranked near the bottom. This year’s data suggests that a strong, positive workplace culture and camaraderie are more important than ever.
The top five reasons contributing to job satisfaction in 2025 were:
- Enjoying the people they work with
- Good compensation
- The ability to learn new skills
- Belief that the dealership is heading in the right direction
- Leaders who are responsive to their needs
As ever, effective leadership and a supportive team environment is crucial in fostering a happy and productive workforce.
The Hidden Stress of Economic Uncertainty
Despite the positive trend in job satisfaction, dealership employees are not immune to external pressures. The study uncovered that the number one source of stress for dealership staff is indeed economic uncertainty, cited by 40 percent of respondents. This concern surpassed even difficult customers at 36 percent and the future of the auto industry at 31 percent. As broader economic anxieties weigh heavily on employees’ minds inside and outside the dealership.
While dealership leaders often focus on “controlling the controllables” within the store, these findings suggest that external factors cannot be ignored. Employees bring these worries to work every day and acknowledging them is a crucial aspect of effective leadership. Pay structure, by comparison, was a distant stressor at 25 percent, suggesting that while compensation is important for satisfaction, the structure of how employees are paid is less of a daily stress than the overarching economic climate and the affordability of living expenses.
A Closer Look at Compensation and Perception
While not at the top of the satisfaction list this year, compensation remained a critical component of the employee experience. The 2025 study found that the largest group of employees (44 percent) earn between $50,000 and $100,000 annually, a range that aligns with the U.S. median salary. However, that number fell from 65 percent last year with almost all the movement dropping to the sub-50,000 pay bracket. In 2024, just two percent of the workforce made less than $50,000, that number increased to 13 percent this year.
Meanwhile, 37 percent of the workforce makes between $100,000 and $200,000 a year, the exact same percentage as the year before. At the very top of the brackets, six percent of dealership employees make more than $200,000 a year.
As the number of employees in that median bracket has decreased, there is disconnect between pay levels and the perception of competitiveness. Only 54 percent of employees feel their salary is competitive with other dealerships, and just half believe their dealership’s pay is adequate to attract and retain new talent.
When asked if their compensation aligns with their personal effort and skill, employees were generally more positive. Two-thirds (67 percent) agreed that their pay reflects the effort they put in, and 61 percent felt it matched their skill level. This perception varied significantly across generations though. Millennials feel overwhelmingly positive about their compensation, with 96 percent believing it reflects their effort. In contrast, only 33 percent of Gen Z employees feel their pay is a reflection of their effort and only 19 percent believed it was competitive or adequate for retention.
The Generational Divide and the Future Talent Pipeline
That generational divide was not just limited to compensation. While short-term retention has improved, the long-term outlook is more uncertain. Only 49 percent of employees see themselves staying at their current dealership for the next five to ten years. This highlights a critical challenge for the industry: building a sustainable career path that encourages long-term commitment.
One of the most telling findings is the low rate of industry promotion. Only 26 percent of employees would recommend a career in automotive retail to friends or colleagues. This creates a significant hurdle for refueling the talent pipeline. Interestingly, the industry’s biggest advocates are actually its youngest members. Gen Z employees are the most likely to promote a career in auto retail (35 percent), despite having the lowest satisfaction with their pay. This suggests they are motivated by factors beyond compensation, such as flexible schedules and the opportunity to learn new skills. Conversely, Gen X employees are the least likely to recommend the industry at 21 percent and the most likely to actively dissuade others from joining.
Actionable Strategies for Dealership Leaders
The CDK 2025 Dealership Workplace Study provides a clear mandate for dealership leaders: focus on the human element. While operational efficiency and profitability are essential, building a stable and motivated workforce requires a deeper understanding of what drives and stresses employees.
- Acknowledge External Stressors: Create an environment where leaders can openly discuss economic trends and the state of the industry. This transparency can build trust and help alleviate employee anxiety.
- Invest in Leadership and Culture: With quality teamwork being the top driver of satisfaction, investing in leadership training and team-building activities is more critical than ever.
- Rethink Compensation and Benefits: Regularly evaluate pay structures and benefits packages to ensure they are competitive and meet the needs of a multigenerational workforce.
- Cultivate the Next Generation: Leverage the enthusiasm of Gen Z employees by providing clear career paths, mentorship opportunities, and the training they value.
Ultimately, the study shows that a dealership’s success is directly tied to its ability to connect with its employees. By fostering a supportive culture, leading with empathy, and strategically investing in their people, dealers can build a resilient workforce ready to thrive in any market condition.
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