The automotive industry is changing, and you need the right culture to adapt and thrive. Historically, compliance has taken a backseat to performance metrics and customer satisfaction scores, but we have learned that a compliant culture improves profits and CSI. Failing to prioritize compliance exposes dealerships to serious legal, financial and reputational risks. Cultivating a culture of compliance is not just a box to check — it’s a strategic decision that protects your business now and into the future. Here are four steps to help you enhance your dealership’s compliance culture. 1. Lead From the Top: Leadership sets the tone. When owners, general managers and department heads consistently model compliant behavior, employees are far more likely to follow suit. This includes everything from following HR procedures and holding employees accountable to properly disclosing terms in the finance office. Leaders must actively promote ethical conduct, be transparent about expectations and ensure all employees do the same. 2. Accessible and Understandable Policies: Compliance is complex. Employment law, cyber compliance, OSHA requirements, environmental regulations and consumer protection laws can leave employees confused and unsure of what to do. Ensure that your policies and procedures stay up to date, are written in plain language and made available to the people who need them. Using an online platform makes it easy to get the information to all employees starting on the first day. Having a few generic templates in your filing cabinet doesn’t build a compliant culture. 3. Inspect and Engage in Person: Starting with online training is great, but it shouldn’t end there. Require ongoing, role-specific education that is engaging and practical. Regular refreshers and real-world scenarios help reinforce key principles and keep compliance top-of-mind. Inspect your operations to ensure the policies are being followed. When they are not, engage your employees with in-person training that is tailored to specific areas that need improvement. 4. Communication Is a Two-Way Street: A true culture of compliance empowers employees to speak up when something seems off. Use vetted third parties to create anonymous reporting channels and ensure there is no retaliation for raising concerns. Investigate all reports fairly and consistently and take appropriate action based on the results of your investigation. This step is often missed, and it makes all the difference. Proactively connect with your people to find and fix the “sparks,” so that you don’t have to fight the “wildfire.” Generational success is built by a strong, healthy, compliant culture. With these four steps you will be on your way to building a resilient culture for your dealership. For more information on how Ethos Group can help your dealership develop more leaders in your F&I office, sales management tower and your sales floor in 2025, please contact: Chris Nesseth at cnesseth@ethosgroup.com or (319) 270-4779, or Austin Shane at ashane@ethosgroup.com or (319) 296-8760. 4 Steps To Creating a Culture of Compliance at Your Dealership By Ben Haile, SHRM-SCP, Ethos Group SCAN THE QR CODE FOR AUDIO. 30 Illinois Automobile Dealer News
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