HR Automotive: A Complete Guide for Employers

From bans on carbon-emitting cars to digitalisation demands – the world of automobiles is a fast-paced, ever-growing industry. That’s why such employers find themselves leaning towards their human resources for guidance.

The automotive industry includes a vast range of divisions. Which means, navigating around legal rules and responsibilities can be challenging for HR departments. But their job is to keep regular operations going, whilst ensuring your staff feel protected, valued, and ‘driven’ during work.

Any holes in your HR department can lead to serious consequences for your auto business. Staff frustrations, high turnover, and work disruptions are just the start. Legal complications can be particularly impactful and hard to recover from.

For more information on automotive HR, speak to one of our expert HR advisors today. Now, let’s take a look at ways employers can improve their HR services to encourage success in their automotive business:

Attract top talented candidates

Research done by the Institute of the Motor Industry found that onboarding figures within the automobile sector are low in 2024 compared to the previous year.

Successful recruitment in the car industry relies on finding employees with specialist skill-sets and relevant qualifications. But without decent wages, job security, and potential branch closures, HR teams have a mammoth task when it comes to attracting new candidates.

Let’s look at ways automotive HR teams can help improve their businesses:

Workplace culture: Start by promoting a workplace culture and values that are attractive to candidates. Presenting a workplace where leadership, communication, and respect is found. HR teams can utilise social media platforms, advert boards, and websites to display what life is like working in your auto business.  

Job benefits: Most candidates today are no longer solely attracted to high salaries-paid jobs. They scan job ads to find additional work benefits and perks that come with the role. From access to car merchandise to free EV charging, take the time to research what benefits will accentuate your job positions over competitors.

Testimonies: Using testimonies helps paint a picture of what your business is like from an objective viewpoint. Ask HR teams to gather them from former employees, customers, and even review companies. Collectively, they can help potential candidates the ethics of your business.

Focus on staff retention

The automotive sector is just as susceptible to high staff turnover as any other industry. High workloads, career stagnation, and mental health issues were some of the reasons for workers quitting jobs in automobiles, according to welfare charity Ben.

Auto HR teams need to share their focus of attracting top-level employees – to retain them. Retention not only helps grow your workforce numbers, but it also decreases turnover rates (and all the HR issues that come with it).

Let’s look at ways automotive HR teams can help improve their businesses:

Employee engagement: Keep staff invested in achieving goals, for themselves as well as the business. Engagement is reflected through output, loyalty, and motivation. HR teams should promote clear communication strategies, safe work practices, and recognition schemes to drive employees towards success.

Development opportunities: Present opportunities for employees to develop their technical abilities, soft skills, and even status positions. From mentoring sessions to promotional opportunities – when they see a future with your business, they’re less likely to look elsewhere.

Recognition and rewards: HR teams should practice rewarding staff for major and minor achievements. Recognition feels great; that’s why employees will aim to replicate their efforts regularly – which is beneficial for your business success. Social events, reward systems, and commission programs can all help with recognising employee efforts.

Promote a positive workplace environment

It’s no surprise that the automotive industry is riddled with all kinds of health and safety issues. In fact, according to the Health and Safety Executive, 3303 workers reported work-related ill health issues in 2024.

That’s why health & safety management is imperative for auto employers to take action. Not only does it minimise accidents at work, but it also protects employee wellbeing and overall welfare.

Let’s look at ways automotive HR teams can help improve their businesses:

Work-life balance: Promoting a healthy work-life balance across your business is a must, from senior executives to new starters. HR teams can promote this through offering flexible working options, scheduling wellness programmes, and having stricter rules on switching off outside of work hours.

Departmental interaction: Lack of interaction between managers and their subordinates is a sticky issue within the auto industry. It’s especially visible during events like redundancies and strikes. HR teams should aim to close gaps between departments, as it helps build cohesive working, work recognition, mentoring opportunities, and career development.

Open communication: A generational gap is particularly visible within the auto industry, particularly concerning younger workers. Research shows a fear of job security and sector accessibility are the main concerns. HR teams can tackle age gaps by offering paid apprenticeships to younger candidates interested in automobile jobs.

Keep up with technological advancements

Digitalisation is hard to escape, especially in the automotive industry. In fact, KPMG predicted a £74 billion booster by 2035. Whilst it might seem like a tech-driven industry, some auto businesses still rely on HR procedures from the analogue era…

From data protection laws to cyber-vulnerability, it falls on auto employers to keep up with societal changes. Or risk their employees and business welfare falling behind with the times (and all the consequences that may follow).

Let’s look at ways automotive HR teams can help improve their businesses:

Digitalise HR systems: HR teams can manage their work duties better by investing in digital software and systems. Not only does it make the process quicker, but the chances of human error also reduced significantly.

Performance management: Developing your workforce has never been easier than using performance management software. With the right systems, HR teams can set goals, track progress, and even provide constructive feedback to their staff.

Automating procedures: All businesses are constantly being encouraged to go paperless. And nowhere is this more apparent than with automating HR procedures. It’s not just about getting rid of paper logbooks, it applies across data protection and even AI acceptance.

Promote diversity, equality, and inclusion

The automotive industry is arguably a ‘man’s world’, as females only make up 17.5% of the workforce. But it’s on the decline according to studies done by the Institute of the Motor Industry.

Automotive employers must strive towards improving diversity, inclusion, and equal opportunities for all staff. It’s not just about hiring more women, it expands to ethnicity, class, age, and even disability representation.

Let’s look at ways automotive HR teams can help improve their businesses:

Diversity training: HR teams can use diversity training to promote respect and inclusion within their work practices. Remember, this type of training isn’t just accessible for workers, it should be presented across your entire workforce – top to bottom.

Inclusive onboarding: Another great area to boost diversity, equality, and inclusion is through your recruitment processes. By using inclusive onboarding, HR teams gain access to a more diverse talent pool, innovative ideas, and revolutionary practices.

Keep DE&I reports: Numbers don’t lie – that’s why it’s advisable for HR teams to keep documented reports on their diversity, equal, and inclusion practices. Reports can cover vast work areas; like retention rates, employee satisfaction, and even diverse hires.

Get expert advice on automotive HR with Peninsula

A solid HR department is arguably the foundation for any successful business. Whilst the auto industry is forever changing, it falls to your HR teams to keep up and lead from the front.

Peninsula offers expert advice on automotive HR. We offer specialised guidance with HR contracts and documentation – helping your auto business manage all its HR duties and obligations. Want to find out more? Contact us on 0800 028 2420 and book a free consultation with one of our HR consultants today.

Sources

Automotive Labour Market Briefing August 2024 | Institute of the Motor Industry

Ben’s Health & Wellbeing Survey of the Automotive Industry: A Report | Ben

Labour Force Survey, Annual Average 2023/2024 | Health and Safety Executive

The Digitalisation of the UK Automotive Industry | KPMG

Driving Towards Inclusion: Sector Report | Institute of the Motor Industry