Reduced hours to stay at some car dealerships, owners say

A trim here and there to sales and service hours at Monadnock Ford in Swanzey, N.H., first prompted by the COVID-19 pandemic, have contributed to higher customer service index scores and lower employee turnover in sales and service — all while vehicle sales have held steady, owner Vadim Makhlis said.

The trimmed hours went into effect after his staff returned to in-person work during the pandemic. Salespeople now work 9 a.m. to 6 p.m. Monday through Friday and 9 a.m. to 5 p.m. on Saturdays. Previously they had been required to be on the clock and in the store 8:30 a.m. to 7 p.m. Mondays through Thursdays; 8:30 a.m. to 6 p.m. Fridays; and 8:30 a.m. to 5 p.m. Saturdays.

Makhlis said he also reduced service hours, including eliminating Saturdays. Before the pandemic, service technicians worked 7 a.m. to 5 p.m., six days a week.

"Initially, we did get some pushback from customers, particularly for oil changes on Saturdays, but we decided to stay with what we have," Makhlis said. "We decided that the quality of life for our technicians is going to lead to us having better caliber, longer-term technicians, which ultimately is better for our customers and for the community."

Monadnock Ford is among dealerships that changed operating hours during the pandemic but have kept the hours to aid employee morale.

"Employees tell us how much it means for their families," Makhlis said.

Makhlis said monthly gross sales in the service department jumped to $210,000 now from $125,000 in 2021. The store increased the number of technicians to 10 from eight in early 2022.

Makhlis, who went from partner to full owner of Monandock Ford in September 2019, said he plans to stick with his operational schedule, which he said helps attract good employees.

"There's other reasons, like good environment, good leadership and all that," Makhlis said. "But certainly a fair, relaxed and consistent schedule makes a big difference."

The new Automotive News Dealership Salary Survey of more than 1,000 U.S. franchised dealership employees found that two-thirds of auto retail professionals surveyed said they had found another job or have considered leaving their current position. And work-life balance woes were the No. 1 reason for employee discontent among those surveyed.
Adam Robinson, CEO of Hireology, a recruitment technology company that works with auto dealerships, said flexibility remains important to employees.

His firm in May surveyed 450 people, all of whom had to have applied for a job in the previous six months and were seeking jobs with dealerships that work with Hireology.

Robinson said 28 percent of prospective applicants said they would leave a dealership for one that offered more flexibility and 35 percent would take a lower-paying job for more schedule options.

"What we know is, a third of employees in this industry would trade some pay for a better schedule," Robinson said. "And so, what that tells us are things like reduced hours and shift flexibility are absolutely critical tools that dealerships can use to keep engagement and retention high."

Another 40 percent surveyed said they were loyal to their employer because of the flexibility offered, Robinson said.

Mark Montenero, owner of Autoland Toyota in Springfield, N.J., and chairman of the Toyota National Dealer Advisory Council, told Automotive News that his dealership shortened hours, too. The store used to close at 9 p.m., but now closes at 8 p.m., and 7 p.m. in winter, Montenero said.

"I have to tell you, the customers are coming in earlier," Montenero said. "I don't see it as a loss of opportunity."

He said staff talk to customers, and if someone needs to come in late, employees will wait for them. But they don't need to keep the doors open to accommodate a few appointments here and there, he said.

And, Montenero said, the change is helping the group attract employees.

These hours "make it a lot better, because we're getting people to come into our industry that never even considered coming into our industry, because they don't want to work 70 hours a week," Montenero said.

Jerry Moore, a division director for Fox Motors, of Grand Rapids, Mich., told Automotive News that the group reduced its showroom and sales hours in 2021 at all of its 30-plus dealerships in Michigan, with some variations as needed for business.

But the pandemic wasn't the sole motivator. Moore said the group always looks for ways to offer its employees a good work-life balance.

For sales, the group eliminated late hours one evening a week and the one day salespeople do stay late is now until 7 p.m., an hour earlier than pre-pandemic. On Saturdays, sales hours were trimmed by an hour.

Service hours were reduced slightly during the week and Fox Motors mostly cut Saturday service hours "apart from limited staffing for express service operations (Quick Lube)," Moore said. Feedback from employees about schedule changes has been "extremely positive," he said.

The changes "have allowed us to have positive recruiting results by hiring professionals that may have avoided our business altogether due to the long hours and inflexible schedules," Moore said. "We feel this gives us an advantage in an extremely competitive labor market."

He said the group's turnover rate is below the national average of all dealerships, which was 33 percent in 2022, according to the National Automobile Dealers Association Dealership Workforce Study.

In his West Michigan division, the rate was 25 percent in 2023, he said. Fox's revenue has increased year over year since implementing reduced hours in 2021 and employees "have more passion and energy," Moore said.

By allowing appointments outside regular hours as needed, he said, the group received virtually no complaints about the change in hours.

"As our industry has changed to more of an appointment-based model, we felt this was an opportunity to make a positive change for our team while still providing a great guest experience," Moore said.

But not everyone in auto retail who modified their hours during the pandemic stuck with them.

Jeff Williams, vice president of Williams AutoWorld in Lansing, Mich., is chairman of the Subaru National Retailers Advisory Board. He told Automotive News that as a retail business he needs to be available to his customers and his dealership's hours have returned to what they were before COVID.

"If you're not open for the customer when it's convenient for them, they'll just go on Amazon and buy it," he said.

Staff Reporter Larry P. Vellequette contributed to this report.