Matt Warner
Senior Vice President, Employee Benefits
High turnover at dealerships can impact the bottom line in several ways, including recruitment and training costs, lost sales while positions are vacant, and reduced customer satisfaction. Stable teams can improve customer experience and operational efficiency. Employee retention is important for protecting revenue, and providing staff with more benefit options could be a game-changer.
Stand out with voluntary benefits
Leveraging voluntary benefits as a retention strategy can help dealerships differentiate themselves from their peers. These benefits can include supplemental life, disability, critical illness, and long-term care. They allow dealerships to expand their benefits menu without significant employer spending while giving employees more control. Long-term care, in particular, addresses coverage gaps that health insurance and Medicare don’t cover, making it appealing to older employees and those supporting family members.
Attracting candidates with long-term value
Many dealerships can introduce voluntary benefits during candidate conversations. This approach helps candidates see long-term value beyond base pay and fosters a long-term perspective regarding their potential employer. Especially in an era of economic uncertainty, dealerships that offer additional financial incentives may encourage employees to stay rather than seek the next higher paycheck.
When do certain voluntary benefits resonate with employees?
- Long-term care insurance — a potential differentiator for mid- to late-career staff and caregivers.
- Disability insurance (short- and long-term) — income protection that may help reduce financial stress.
- Supplemental health (critical illness, accident, hospital indemnity) — addresses coverage gaps for employees concerned about health plans.
- Voluntary life insurance — affordable additional protection for families.
- Financial wellness tools (student loan help, counseling) — supports younger workers.
Employees may not initially recognize the positive impact of voluntary benefits in their lives, so ongoing coaching, enrollment support, and communication are essential. These efforts help staff understand the benefits’ uses, leading to retention as they enroll. Consider implementing benefit education, decision-support tools, and mobile-friendly enrollment platforms to guide their choices.
Integrating benefits into dealership culture
Over time, dealerships can integrate voluntary benefits into their culture, leadership, and operational practices. Train managers to discuss total rewards (pay plus benefits) during career conversations. Managers who can explain voluntary offerings and how they relate to family and financial security make benefits more meaningful.
In operational practices, develop ongoing communication and flexible scheduling to help reduce stress in selecting benefits by making the process less urgent. This approach also helps employees understand what they are enrolling in, leading to greater satisfaction with their choices.
Design considerations for voluntary benefits in dealerships
- Curate vendor partnerships with simple, voluntary plan designs and group pricing.
- Offer payroll-deduction enrollment and year-round access for life events.
- Provide examples and calculators during onboarding.
- Track enrollment and renewal trends to adjust offers each year.
Practical next steps to leverage voluntary benefits for retention
- Audit current benefits and voluntary options against local competitors.
- Add or promote long-term care, disability, and supplemental health as voluntary options.
- Build a brief benefits orientation into the 30/60/90 onboarding plan and manager check-ins.
- Use decision-support tools, benefits fairs, and one-on-one counseling to boost uptake.
- Measure enrollment, retention, and exit reasons quarterly and adjust offerings.
- Consult with an employee benefits representative on what makes sense for your company.
Voluntary benefits are a cost-effective, flexible retention tool for auto dealerships. When combined with transparent pay, structured onboarding, manager coaching, and operational improvements, voluntary offerings may strengthen loyalty, reduce turnover, and protect customer relationships.
To learn more about how dealerships can use voluntary benefits to stay competitive, download our report, Enhancing Retention with Voluntary Benefits.
