Analysis

Frontline workers in the automotive industry

Reskilling and upskilling automotive talent

As the automotive industry adapts to new technologies due to the shift to an electric mobility future, organizations are focusing on strategies for retaining automotive talent. To help reduce turnover, both reskilling and upskilling automotive talent makes financial and operational sense, along with investing in benefits for frontline workers.

Today’s automotive organizations are experiencing a time of change and challenge, including rapid digitization and advanced technologies, a shift to electric vehicles being driven by governments and consumers, and increasing competition for workers. 

Frontline automotive workers play an essential role in an automotive organization’s success, whether you are an original equipment manufacturer (OEM), captive lender, or automotive dealership. Yet frontline workers are difficult to attract, expensive to replace, and challenging to retain. Companies are investing in upskilling automotive workers to help them keep up with new technologies and improve their skills in customer service and prioritizing benefits for frontline workers. 

Explore our three-part series of articles to find talent strategies that automotive organizations can leverage to win talent in today’s ecosystem by attracting workers, upskilling and reskilling automotive talent, and providing personalized benefits for the automotive workforce.

Increasing competition for automotive frontline workers

Responding to a combination of climate change, fluctuating gas prices, and a quest for energy independence, governments worldwide are encouraging original equipment manufacturers (OEMs) and consumers to embrace EV technology. With the move toward an electronic mobility future no longer in question, US automotive manufacturers are struggling to grow and maintain a frontline workforce to meet consumer demand.

Companies should take a fresh approach to recruiting and hiring to win in today’s talent ecosystem and attract crucial frontline workers. The first article in the series explores tactics for organizations to consider, including adopting a skills-based talent strategy, creating an enticing brand for employees, and shifting to a tech-enabled hiring process.

Retaining frontline automotive talent through career mobility and growth

Frontline workers often make up the majority of a company’s workforce yet receive little attention—and continue to turn over at alarming rates. Reducing turnover makes financial and operational sense: the average cost to replace US employees can range from one-half to two times their annual salary. Employees who stay longer are more experienced and productive—with higher morale and job satisfaction, contributing to better customer service.

To reap these benefits, organizations need to rethink the frontline automotive worker experience. Meaningful programs and opportunities can help reduce turnover, spend more time upskilling automotive workers rather than training, and turn frontline employees into loyal, proud brand ambassadors. The second article in the series presents three strategies to help reduce turnover and retain frontline automotive workers, including helping workers to see the long game, offering opportunities to build skills and resumes, and prioritizing learning to help build employee confidence and organizational success.

Creative benefits for frontline workers

Automotive OEMs are currently experiencing a workforce challenge, trying to retain current employees while recruiting new workers. The worker of today has a different mindset than the pre-COVID worker, requiring US automotive manufacturers to offer better wages, better benefits, and more flexibility if they want to keep their business humming.

With the competition for frontline workers heating up, creative, differentiated, and thoughtful total rewards packages are becoming increasingly important. The third article in the series explores total reward packages that can help set an automotive organization apart in the eyes of frontline automotive job seekers, including dynamic, personalized benefits, multi-faceted cash compensation programs, support for learning and development, and opportunities for recognition.

Contact us

Charlie Buchanan
Human Capital Automotive Leader, Deloitte Consulting LLP
cbuchanan@deloitte.com
+1 713 982 2004

Cathy Gutierrez
Workforce Transformation Leader, Deloitte Consulting LLP
cathgutierrez@deloitte.com
+1 212 436 2331

Jocelyn Mayfield
Organization Transformation Leader, Deloitte Consulting LLP
jomayfield@deloitte.com
+1 312 486 3268

Fullwidth SCC. Do not delete! This box/component contains JavaScript that is needed on this page. This message will not be visible when page is activated.

Did you find this useful?