Do you remember the spring of 2020? The shutdowns, the uncertainty, the feeling that the auto industry as we knew it might never recover. It wasn’t that long ago, but with the pace of our business, some days it feels like ancient history.
We braced for collapse. Many very smart people made very dramatic decisions because we had no idea what was coming next. Then the unthinkable happened… not only did we survive, we thrived in the face of adversity.
Overnight, scarcity flipped the script. For the first time since before the internet changed the game, dealerships had the leverage. For 18 straight months, we recorded historic profits. It was a tide that lifted every boat from senior management to brand-new hires who walked into the business and simply took orders to get paid like seasoned pros. It was exciting. It was fun. However, let’s be honest, it was not normal.
The Post Pandemic People Problem
Fast-forward to 2025. Those booming months already feel like a distant memory. The market has corrected, the leverage is gone, and those easy are nowhere to be found. What we have now is an industry struggling while dealing with the after-effects of that extraordinary period.
During that time, a whole new generation entered our workforce. They saw huge earnings but never learned the fundamentals. Meanwhile, many of our best veterans retired or moved on… leaving elevated leaders who advanced through tenure, not talent, salespeople who learned from Day 1 that selling was easy and process didn’t matter.
And now? Those are the people running stores.
And true top-tier talent is harder to find than ever.
Talent Retention is the New Competitive Advantage
Dealers and GMs ask me all the time:
“How do we keep the good ones?”
“Do we really need to pay them that much?”
Compensation matters but it’s no longer the only motivator. COVID-era pay levels changed the expectations permanently. Furthermore, this generation cares just as much about work-life balance as they do about dollars.
If we ignore that reality, we end up living in the hiring cycle with persistent turnover, constant training, unlimited ads, and endless frustration.
A smart operator has always said:
“You can’t be held hostage by any employee.”
That statement still holds true.
But there is also a hidden expense draining profitability today: turnover.
It’s not listed on the financial statement, but you feel it every single month.
So, ask yourself honestly:
Would you work the job you’re asking someone else to do, for the schedule and the pay attached to it?
If the answer is “probably not”, something must change.
Especially in F&I
F&I is performance-based. The more they make, the more you make. If your best producer needs:
✔ A stronger pay plan
✔ A balanced schedule
✔ A second finance manager to share coverage
…is that really a burden? Or is it an investment?
If you pay 2% above the market… but get 10% more production…
Are you really overpaying?
If someone works 70 hours a week but is burned out and inconsistent, is that a win?
Or would you rather have a rock-solid pro giving 100% for 40 hours every single shift?
How Will You Proceed?
Some dealers are adapting quickly and those are the stores steadying their ship in today’s market.
Others are constantly running ads, onboarding replacements, and trying to figure out why they can’t keep their bench filled.
One group is winning.
One group is chasing.
Which one do you want to be?
Get in touch with Jason Gannon today on LinkedIn or email at jgannon@barcgroup.com to learn more about retention strategies at your dealership.