Driving Top Talent Retention in the Automotive Industry

2023-08-23

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7 min read

TABLE OF CONTENT

In the dynamic landscape of the automotive industry, innovation reigns supreme. From electric vehicles to autonomous driving, the race for cutting-edge technology and superior performance is unending. And amid this race of advancements, one constant remains at the heart of a company's success: its talent pool. The automotive industry's ability to attract and retain top talent, particularly IT and product talent, a historically less represented group in the industry, plays a pivotal role in determining its future trajectory. In this blog post, we delve into the importance of top talent retention in the automotive sector and how the right investment into targeted, individualized people development will determine an automotive company's success or failure in the upcoming years.

Being Industry Innovation Leaders

At the core of the automotive industry lies a relentless pursuit of innovation. The industry's landscape has evolved from traditional internal combustion engines to electric vehicles, connectivity, and autonomous driving. In particular top automotive IT/Product talent, with their diverse skills and creative ideas, are the driving force behind this innovation.Retaining such individuals ensures a steady stream of fresh ideas and a commitment to pushing boundaries.

Preserving Decades-Old Industry Wisdom

In an industry where technology shifts are rapid, experience and institutional knowledge are invaluable. Top talent often deeply understands the industry's history, lessons learned, and nuances that can only be learned through hands-on experience. When this knowledge is retained within a company, it acts as a guiding light, preventing the reinvention of the wheel and facilitating efficient problem-solving.

Maintaining a Competitive Edge

The automotive sector is fiercely competitive, with companies vying for market share, consumer loyalty, and technological dominance. Talented individuals bring unique perspectives, skills, and a track record of success. Their presence enhances a company's reputation and fosters an environment where excellence is encouraged and expected. Losing top talent to competitors can significantly undermine a company's competitive edge.It will become increasingly critical for automotive companies to raise their brand as a top employer of choice by offering best-in-class employee experiences that attract not only talent, but top talent.

Reducing Costs and Enhancing Stability

The cost of employee turnover can be staggering. Recruiting, onboarding, and training new employees require substantial time and resources. High turnover rates can disrupt projects, delay timelines, and impact team cohesion.In fact, the average cost of replacing a new employee can range from Â½ - 2x their annual salary (Gallup, 2019). In particular, IT/Product Talent is in high demand in the automotive sector aiming to lead innovation with cutting-edge technology. With a turnover of 13% (LinkedIn, 2022) for product talent, a medium-sized automotive company with 5000 employees and an average salary of 85.000 EUR faces a risk of 110 million EUR in cost.Retaining top talent reduces these costs and contributes to a stable work environment where goals can be pursued with minimal interruptions.

Customer and Supplier Relations and Brand Loyalty

The automotive industry thrives on building long-lasting relationships with suppliers and customers. Top talent often deeply understands stakeholder needs and preferences gained through experience and insight. Retaining engaged, top-performing employees who anticipate and fulfill these needs helps build brand loyalty and partnership trust. The investment in retaining top-engaged employees will pay off because teams who score in the top quartile for employee engagement saw the following benefits compared with bottom-quartile teams:

10% higher customer loyalty/engagement
23% higher profitability
18% higher productivity
18% lower turnover for high-turnover organizations (those with more than 40% annualized turnover)
43% lower turnover for low-turnover organizations (those with 40% or lower annualized turnover)
81% decrease in absenteeism
41% decrease in quality defects

(Gallup, 2022)

Retaining top industry talent with digital Coaching

One way to mitigate turnover risk and build automotive organizations that are top employers for the best Product/IT talent on the market is to offer individualized, personalized development like Coaching. According to market research, Coaching is the most sought-after benefit for employees in 2022, and due to its scalability with digital Coaching can be a cost-effective and impactful tool to Decrease Turnover Risk, Create Strong Role Alignment for Top Automotive Talent, and Become an Employer of Choice for IT/Product Talent.

Decrease Turnover Risk

Coaching enhances job satisfaction and engagement by providing employees with personalized guidance, skill development, and ongoing support. When employees feel valued and equipped to navigate the challenges of the automotive sector, they are more likely to develop a strong connection with their company's mission and objectives. Effective Coaching helps identify and address potential issues that contribute to turnover. As automotive professionals experience personal growth and enhanced performance through Coaching, their loyalty to the organization solidifies, reducing turnover rates and related operational disruptions.A global automotive technology supplier and CoachHub client realized this and rolled out a Coaching program that significantly impacted talent retention. Attrition went from 20% to 14% as a result of the coaching intervention. Given the company size of 2,700, this contributed to estimated savings of 28 million EUR (assuming an average salary of 85k EUR) due to the reduced cost of talent replacement. Furthermore, the long-term benefits of the coaching program are visible even 12 months down the line, when more than 95% of coachees who participated in the program were still part of the organization.

Creating strong role alignment

Being a product-savvy innovation driver in the history-rich automotive industry means building a workforce with the culture and skills of a product organization. With a workforce mainly built from industry talent, there naturally is a part of the workforce struggling with person-role/organization-fit, potentially contributing to low employee engagement. Coaching is a development intervention that contributes to high person-role fit across the organization in numerous ways:

Help top talent proactively shape their role and apply their strengths where needed.
Top talent career planning in line with their aspirations and the organization’s needs
Help less engaged employees reflect on their current position and determine their role in the organization's future.
Set internal and external development pathways to help individuals with lower person-role fit thrive in their careers.

Data across all CoachHub clients demonstrates the impact of Coaching on factors related to person-role fit, in particular +10% Motivation, +9% Growth Mentality, +12% Centeredness, and +11% Authenticity.

Become an employer of choice for top tech talent

With Facebook, Netflix, Hubspot, Google, Microsoft, and Co. leading the way, the technology industry is best in class in offering employee experiences and, with that, become the most attractive employers on the market. One tangible way automotive organizations can stand out is through benefits beyond classic healthcare and pension. Examples include Flexible hours, Equal paid parental leave, Remote/ hybrid work options, Employee assistance programs, Unlimited PTO, and Personalized training and development such as Coaching.For employees, Coaching is an appealing benefit because it:

Offers top talent a sounding board for ideas and innovations.
Engages employees in career planning and progression.
Provides individualized learning and development opportunities.

For employers, Coaching is an appealing benefit because it:

Shows that the company is invested in its workforce.
Helps to identify and nurture top talent
Provides a cost-effective and impactful learning experience.
Reduces turnover and increases engagement.
Offers aggregated insights into the strengths and areas for opportunity across the organization.

The automotive industry's journey toward innovation and success is powered by its most valuable asset: top talent. The individuals who bring creativity, expertise, and a commitment to excellence play an instrumental role in shaping the industry's future. Retaining these individuals isn't just an HR strategy; it's a strategic imperative that drives innovation, maintains competitiveness, and fosters a culture of excellence. Companies that recognize and invest in top talent retention through individualized, personalized development offerings like Coaching will be well-equipped to navigate the twists and turns of the automotive landscape and emerge as industry leaders.

FAQ

At CoachHub, we believe in the power of aligning individual growth with organizational objectives. Our dedicated coaches work closely with coachees to ensure that their growth plans are directly linked to your company's overarching goals. This includes addressing specific leadership development needs within different departments or teams, and recognizing that each area may have unique challenges and requirements.

To achieve this alignment, we collaborate closely with our clients and their senior leaders, taking the time to understand their organization's specific challenges, objectives, and organizational culture well. By gaining deep insights into your company's dynamics, we can tailor coaching plans that address the specific needs of different teams and individuals.

Our approach is highly customized and adaptable. We recognize that each coachee has unique requirements, and we leverage our expertise to develop coaching plans that are relevant and effective for all participants, regardless of their role or level within the organization. Whether it's helping to develop leaders, retain talent, improve leadership skills of middle management, or support C-suite executives, our coaching programs are designed to cater to diverse needs and ensure maximum impact.

By aligning growth plans with your company's objectives, we create a cohesive approach that enhances overall organizational success. Our coaches help coachees identify areas for improvement, set meaningful goals, and develop actionable strategies to bridge the gap between their current competencies and the desired leadership abilities. This alignment not only facilitates personal and professional growth but also contributes to the long-term success of your organization.

With CoachHub, you can be confident that our coaching programs are tailored to address the specific leadership development efforts within your organization. By collaborating closely with our clients, we ensure that our coaching plans are relevant, effective, and aligned with your company's objectives, driving growth and excellence across all departments and levels.

At CoachHub, we understand the importance of scalability when it comes to your leadership development program. That's why our programs are thoughtfully designed to accommodate a large number of participants simultaneously, ensuring that organizations of all sizes can benefit from our services. Whether you have a small team or a global workforce, our coaching platform is equipped to handle the scale.

With our advanced digital coaching platform, we bring high-quality coaching directly to employees all over the world. The beauty of our online sessions is that participants can access them from anywhere, at any time. This flexibility empowers employees to engage in coaching without geographical constraints or time zone limitations. Whether they're working from home, traveling for business, or stationed in a different country, our platform ensures that they can easily connect with their coach and participate in sessions at their convenience.

The digital nature of our coaching platform also means that participants can enjoy a consistent and seamless coaching experience, regardless of their location. Through video calls, instant messaging, and other interactive tools, our platform fosters a sense of connection and engagement between the coaches and participants. This virtual environment not only saves time and resources but also allows for regular and ongoing coaching support without the need for in-person meetings.

By leveraging the power of technology, our scalable coaching programs break down barriers and provide accessible coaching solutions to organizations and individuals around the globe. Whether it's a small team or a multinational corporation, our platform ensures that every participant can benefit from high-quality coaching, anytime and anywhere.

Absolutely! CoachHub's leadership development program is designed to seamlessly integrate with your existing talent development and performance management initiatives. We understand that every company has its own unique needs and goals, and that's why our coaching sessions are completely tailored to meet those requirements. Whether you're looking to strengthen leadership skills, foster personal growth, or achieve organizational success, our program aligns perfectly with your company's specific objectives.

By customizing our coaching sessions, we ensure that each individual receives the guidance and support they need to thrive. We take the time to understand their strengths, challenges, and aspirations, and then craft a coaching experience that caters to their personal growth journey. This way, we can provide targeted development opportunities that directly contribute to their success within your organization.

When you integrate our program with your leadership development efforts and performance management initiatives, you create a powerful synergy. Our tailored approach complements and reinforces your existing efforts, allowing you to build a comprehensive framework for maximizing the potential of your workforce. Together, we can create an environment where employees are motivated, empowered, and equipped with the skills they need to excel.

So, rest assured that with CoachHub's leadership development program, you can easily integrate coaching into your existing initiatives and achieve remarkable results that align with your company's requirements.