17 Dec Retaining the Millennial F&I Manager
Much has been written about and analyzed when it comes to comparing all of the major population demographics. How Boomers prefer to buy a car. How Gen X-ers handle their money. What the newest entrants in the car buying segment, Gen Z, view car ownership in general.
However, Millennials are proving to be the most interesting group to observe even in the midst of a global pandemic.
But for those dealerships who have employed Millennial F&I managers, how do they keep them happy as employees? What can a dealership do to retain this employee in an era of ‘job-hopping’?
Here are a few tips on how to retain your Millennial F&I managers and why you must approach them differently than employees of other generations…
They Thrive on Growth
In an age when most Millennials only last at a job an average of 3-4 years, it’s important to let them know they are valued and that your store invests in professional development. Lack of career development and training opportunities are often cited as the biggest reason why they move on.
Ongoing training is important to any employee but with the layers of regulatory issues surrounding F&I, it’s a must. The Millennial employee wants to keep learning and offering any training provided by your F&I providers will help make sure they understand that your store is willing to make this investment in keeping them at the top of their game.
Comp Plan That Makes Sense
F&I managers generally have the highest compensation in the dealership with a recent average of over $140k per year. It’s important to make sure that, in the mind of a Millennial, that how their pay is structured makes sense and is fair.
Obviously, there must be an incentive to push the PRU as high as you can…that’s how the dealership makes the most profit. Many successful dealer groups have transitioned to a salary/commission format so that the F&I manager doesn’t have the added worry of paying back a draw (worst comp plans ever) or a low or non-existent salary that can’t take care of their basic needs.
Giving Back Matters
Millennials often cite ‘corporate giving’ or ‘corporate responsibility’ as a reason why they would stay at their job. Dealerships are generally known for being involved in their communities at some level but think about how much your store really does. How dialed in are they to local charitable causes?
Establishing your dealership as a place where community service is applauded and encouraged will make a positive impact on all employees but especially your Millennials staff. Giving back means something to them (and that’s a good thing!).