Our latest analysis of workforce data shows that the automotive sector is retaining its employees for longer, with turnover stabilising at around 10.1% , in line with the broader economy. That’s great news, however, the workforce is aging, especially in technical roles where experience is concentrated in older employees. Meanwhile, the number of new entrants into automotive remains low compared to national benchmarks, limiting the pipeline of future talent.
As pressure mounts to attract staff, a deep dive into how employees move into and out of the sector reveals that low turnover does not automatically mean people feel included. It can also indicate limited opportunities to move or progress. Here the sector definitely has room for improvement which, in turn, would help to attract the right people for the right job.
Our data shows that women and disabled people have lower turnover rates, but this more likely reflects barriers to entry, movement and progression rather than higher satisfaction. Looking at the broader picture though, as women and the disabled have turnover rates below the national average for non-automotive sectors, it is more likely that barriers to entry and career progression remain. Put simply, there are fewer opportunities existing in automotive for these groups to actually move employer and progress within our sector.
Equally as concerning is a high 15.7% turnover rate of non-white-British employees in automotive. This is a significantly higher rate than across all sectors where there is a 9.2% turnover. This statistically significant gap shows that gains in ethnic diversity remain fragile and that the automotive sector has ongoing challenges in retaining ethnically diverse staff.
News on attrition rates comes as the vacancy rate in automotive stands at 2.8%, the sixth highest across all UK industries. Currently there are an estimated 17,000 unfilled roles across the motor trades and many of these vacancies are in key technical roles.
Although overall turnover has stabilised, our research indicates that more work needs to be done to promote inclusivity whilst creating clear paths for career progression for women, disabled people and ethnic minorities. The truth is that diverse automotive businesses outperform their peers by 25%, so inclusion is a win-win. We must continue prioritising inclusive recruitment, progression and retention to build a more diverse, resilient and future-ready workforce.
Emma Carrigy, head of research, careers & inclusion, Institute of the Motor Industry
