CARY, N.C. -

Independent stores might have attractive vehicles in their inventory. They might have a superb location, too. They might even have an established customer base of repeat buyers who share their positive experiences with friends and family.

But Chuck Bonanno pinpointed the hurdle that continues to confound independent operators even before the coronavirus pandemic intensified.

“Besides capital, human resources and finding good employees have been the biggest challenge over the last few years,” said Bonnano, who is the vice president of dealer development at the National Independent Automobile Dealers Association.

Having been a 20 group moderator, consultant and former dealer himself, Bonnano described the changing dynamics of who independent dealership want on their payroll and the pool of potential employees operators have.

“The couple of things that dealers want is an employee who is looking for a career, not a job. And this is true in every department of the dealership,” Bonnano said. “They want them to feel the position they have in the dealership is valued and has potential for growth, and that it’s not the old sweat shop, boiler-room type of dealership strategies that had gone on forever but are changing rather quickly. Th e working six, seven days a week, bell to bell, that’s still prevalent in a lot of franchised dealerships, but it’s going away in the independents. We’re trying to find ways to give people a better balance of work and life.

“Some of the values that the employees are looking for is, can I help be a part of something? Am I appreciated? What are the benefits of the company? What is the room for promotion? It’s not always just how much money can I make. That’s the biggest change,” he continued.

Bonanno acknowledged that many of today’s independent operators cut their retail teeth at another dealership before embarking on running their own businesses. And operators who might have some salt and pepper in their hair are trying to make adjustments.

“That’s one thing that it’s hard for some dealers to let go of is: ‘Here’s how I did it when I started.’ But they do want somebody who wants to be there and not that they have to force them to be there,” Bonnano said. “Dealers want people who look at this as a great job and a great opportunity and not do what they’ve historically done at independent dealerships, which is take the throw-away employees from franchised dealerships and larger dealerships and saying, ‘Well this guy has experience, even though nobody cared for him or he didn’t do a good job.’

“Dealers want people who think this is a great opportunity with pay and benefits, and they’re willing to do the work to help us be a better company,” he added.

While some franchised stores might have an elaborate showroom mandated by the automakers, some independent stores might be a no-frills facility. Bonnano explained how perception creates another hurdle.

“One of the challenges that independent dealers have is still the disconnect about the opportunity at an independent dealership and the perception of the potential employee. They look at a small lot and say, ‘I don’t know cars. I don’t want to be a car salesman.’ But the employment opportunity is as good as it’s ever been,” Bonnano said.

“But as dealers how do we get them to apply for jobs come in for interviews and see their opportunity? It’s very challenging; always has been and even more so today,” he went on to say.

So what separates successful independent dealerships from ones that might be struggling when it comes to the people on their staffs? Bonnano painted this scene.

“When someone asks me, ‘Why is this dealer so successful, and this one over there even it appears they’re selling a lot of cars and making a lot of money, has a lot of struggles?’ I say it’s never their model. It’s never their gross profit margins. It’s never their expense controls. It’s their people,” Bonnano said.

“There are two things that I look at when I go to see a new dealership. One is give me the staff and their history and give me their tenure with the dealership. It’s invariable that those dealerships that have the most success have long-term employees,” he continued.

“As every study has shown, money itself will not keep people in jobs,” Bonnano added. “You must have created a culture where everyone is appreciated from the lot boy to GM, and they feel they make a difference and people are aware that they’re working hard and trying to do the right thing and pulling in the same direction.”

Another business segment that is even more complex for independent stores is connected with the dealerships that have a service drive or do their own reconditioning. Having capable technicians to complete the work is an industry-wide issue.

“The one area that is most concerning is in the service department,” Bonnano said. “We have a complete and total lack of training for service techs out there. And we’re not making enough through schools. You think it’s hard to get a salesperson? Try getting a tech to go from a new-car store where they feel like it’s a big deal even though the pay and the benefits are the same, the hours are typically better at an independent, but we don’t have techs to go around. Techs become a bidder wars.

I’m very concerned we’re not training vocations like mechanics. The guy who could be a shade-tree mechanic 20 years ago when everything was mechanical today the need is in electronics and computers. We’ve got to develop those skills or it’s going to be a very rough road,” he went on to say.

At least some parts of the education industry are trying to fill the need for auto technicians.

Florida Career College (FCC) with 10 campuses throughout the Sunshine State launched an automotive technician program at its Hialeah campus in March.

The school highlighted the implementation of this automotive technician program allows students to receive hands-on training and skills to prepare them for an entry-level position as an automotive technician. Students who enroll in the program can earn their diploma in as few as 10 months, according to FCC.

 Students will train in FCC’s new automotive lab where they can practice on real vehicles and develop practical skills.

“We are thrilled to be adding the automotive technician program at FCC in Hialeah,” said Niki Good, executive director at Florida Career College’s Hialeah campus.

“With the increase in electric vehicles, there is a growing need for skilled automotive technicians who are trained to perform repairs on both traditional and electric systems,” Good continued in a news release. “We aim to meet market demands by providing students with the training needed to start a career in the automotive industry.”

FCC’s decision arrives amidst an array of other actions aimed at increasing the pool of trained technicians.

A quartet of dealer groups with a presence in Pennsylvania is involved with another education program aimed at boosting the number of qualified service technicians trained by Universal Technical Institute (UTI) in Exton, Pa.

UTI explained its Early Employment initiative blends proven post-secondary skills education with on-the-job, apprenticeship-type training. Under this new initiative, students can apply for jobs with participating local employers as soon as they enroll at UTI’s Exton campus. Employers registered with the program can screen and hire incoming students before they start school and provide on-the-job experience while students complete their education. Graduates who meet their employers’ criteria will receive reimbursement of school-related expenses and potentially other incentives, along with full-time employment.

“This initiative is a win for both employers and students,” UTI-Exton Campus president Bob Kessler said in a news release. “Students gain real industry experience and earn a living while they’re in school.

“Once they graduate, they have a good job with an employer they know well, who will help them pay back their tuition,” Kessler continued. “Employers have the opportunity to help train future technicians to meet their needs and fill a critical skills gap."