2 Common HR Problems In The Auto Industry And How To Solve Them
Some common HR challenges in the auto industry are also seen in the workforce as a whole, such as employee retention. However, the auto industry also contains unique HR challenges, like skill shortages. Let’s take a look at these difficult challenges so that we can find the best solution for you and your business.
1. Retaining Employees
High employee turnover is bad news for your auto business, as it’s frustrating, costly, and inefficient. Hiring people is expensive- you have to place a job posting, wait for responses, look through applications, give interviews, eventually hire someone, train them, and maybe then they’ll be able to do their new job correctly and efficiently. It’s estimated that the cost of hiring a new employee in the automotive or manufacturing industry is close to $5,000. So it’s normally far better to try to keep employees rather than having to find new ones!
But how is this done? Employee retention can be difficult if your employees have to work long hours, aren’t paid well, or have to work in a stressful environment. Consider providing benefits like paid time off or provide paid lunches once a week. Or, if you think your employees could be struggling with addiction or other personal problems, think about offering an employee assistance program to help them get back on the right track.
Additionally, allow your employees to take the occasional break and offer competitive pay- though these things may seem expensive initially, the eventual benefits of providing them to your employees more than cover the cost. These perks make your employees feel valued and they are incentivized to continue to work at your business, which means there are less hiring costs for you!
Employee retention means that you save money and you continue to hold on to experienced, knowledgeable employees who are helping make your auto business great. Taking the time and the resources to show your employees you value them truly pays off in the end.
2. Shortage of Skills
But if you do need to hire someone, you may face another problem: skill shortages in the auto industry. Skill shortages will only become a bigger problem for your auto business as older employees age out of the workforce and younger ones become increasingly hard to find. Add that to the fact that automotive skills are becoming increasingly more technical and niche (meaning less people can do more things) and you’ve got a growing crisis on your hands!
So, how can you attract the best and the brightest employees for your business? A great place to start is by offering apprenticeships to create the skills needed for your business! Apprentices work under someone more experienced (like a technician) for a period of time until they are able to work independently for you. Apprenticeships attract young people, which means you’re attracting people who have the potential to work for you for a long time, and apprenticeships allow you to create and develop the skills your business needs.
Additionally, you can offer technical courses and education for the employees you already have. Consider covering the cost of technical classes at a nearby trade school for your employees, which allows them to develop new skills and fine-tune existing ones. By doing this, your employees can use their new skills at your auto business, making it better serviced and more efficient. Additionally, if this is advertised in your job postings you can attract high-quality potential employees who are hoping to grow their skills in a new position!
Both of these are great ways to make sure your auto business is employed with knowledgeable, skilled workers. And when these practices are combined with the employee benefits mentioned earlier, your business will continue to grow, armed with valued and skilled employees.
Sources: Houston Chronicle, HR.com, Hireforce, Recruiter Box