Creating workforce resilience in a challenging market
Employee costs are the largest expense in any dealership, accounting for a significant percentage of gross profit, and with increasing pressures on margins, expense and employee management is critical to sustained profitability. Therefore, ability of businesses to not only appropriately remunerate employees but also provide structures for their development remains essential.
Overall, the 2025 salary survey shows that total remuneration across all positions, including management, increased by 5%. However, when management roles are excluded, the increase drops to just 2%. This modest growth masks a more significant shift in the composition of pay. Basic salaries rose by 5%, while commissions and bonuses declined by 7%, indicating a potential move away from variable pay. This is the second year in succession where this has happened, suggesting that employers might be prioritising income stability for their workforce in response to fluctuating sales volumes and tighter margins.
Participants in the survey employ over 20,000 people and in the last year had an estimated staff turnover of 28%, down from 32% the previous year, indicating improved retention and/or loyalty. However, the overall workforce among survey participants contracted by 8%, suggesting that businesses are taking a cautious approach to hiring.
The 2025 Motor Salary Survey once again offers a detailed view of how current trends are playing out across different departments and roles in dealerships. Beyond just remuneration, the survey also highlights shifts in workforce dynamics. It includes hot topics in retention and reward and thoughts on how workforce investment is crucial for future-proofing the business from automotive recruitment experts Ennis & Co.
A summary of the report is available to download below. The full version with the detail for all positions is only available to participants.
If you would like to participate in the next Salary Survey in 2026, discuss the report further or talk with us about any wider sector issues, please contact Chris Bond, or speak to your usual BDO adviser.