Imagine fishing from your favorite pond and catching the same fish over and over again. And even when you catch a new type of fish, you aren’t able to keep it on the line because you don’t have the right pole. You hope things improve, but you continue to fish out of the same pond with the same pole. This simple metaphor reflects the state of diversity and inclusion in automotive retail. The harsh reality is that the industry lacks representation in key segments, like women and minorities, and/or lacks the culture to support these groups when they are hired. Many dealership teams do not reflect the communities they serve, and there are negative implications to this that hurt the organization’s ability to innovate and grow. The disparities are obvious when you look at the data. Women consumers are responsible for 65% of new vehicle purchases and service work done at dealerships but only represent 21% of dealership employees. Likewise, minorities represent 30% of new vehicle car buyers but only represent 6% of dealership owners. Companies with diverse teams are not only more attractive to prospective employees, but also have better ROI. According to a McKinsey study, companies with more racial diversity are 36% more likely to have greater financial returns than average and companies with more gender diversity are 25% more likely to perform better financially. A focus on diversity and inclusion is a business decision. The reality is that customers often feel more comfortable when a dealership’s staff has representation that looks like them. For example, a dealership with an all-male staff is at a disadvantage when half the population is female. A dealership with all white employees is at a disadvantage in a community with a significant Latino population. But there are other implications in our current environment to consider. The “great resignation” occurring in America has resulted in 4.5 million people voluntarily leaving their positions as of November 2021, exacerbating employers’ ability to retain their teams. Now, this doesn’t mean you should seek to hire every kind of person. But it does mean that you should strive to build a staff that is representative of the demographics of the community that you serve. There is an opportunity to “fish in new ponds and with new poles,” attracting talent that may look different than the typical automotive profile but have transferable skill sets. USING DIVERSITY & INCLUSION as a Competitive Advantage By Kerri Wise 2 0 2 2 - 2 0 2 3 S P E C I A L L E G I S L A T I V E E D I T I O N 10 new jersey auto retailer
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