Benefit Insights and Interests of the Auto Industry
Employers face a myriad of challenges in today’s job market, from program participation to talent recruitment, and beyond. One subject, however, seems to be impacting the automotive industry harder than others—employee retention.
While average turnover in the United States is currently 13.5%,1 recent industry studies reveal a 46% turnover for auto industry employees,2 representing what may be an all-time high for the market and may signal unsustainable workforce instability. Given that the auto industry employs an average of 4.4 million people,3 improving employee retention can feel daunting for employers—a sentiment we’ve heard from our automotive partners. Here are some insights into helping improve employee retention in the auto industry.
The Cost of Benefit Confusion
Let’s face it, understanding insurance benefits can be confusing for many people. Approximately 85% of employees report confusion about their benefits.4 This could result in missed opportunities for employees to get the most from their benefit selections, including health and wellness benefits.
Plus, some automotive employers are experiencing rising costs over the year. In 2023, commercial auto insurers lost $5 billion, with the first half of 2024 not faring much better. These losses come from battling increasing claims costs and a difficult litigation environment.5 This, along with health care costs rising by 7.5%,6 may cause some auto employers to reconsider what benefits to offer and what to cut.
A robust employee education plan before, during, and after open enrollment may help bridge the gap between understanding and underutilizing valuable benefits. When employees better understand their options, they’re more likely to use those benefits and make more informed health decisions year-round.
Consider implementing routine surveys and one-on-one meetings as opportunities to gauge what benefits matter to your employees and where your programs may need tweaking.
Benefits May Boost Workplace Loyalty
When employees believe you have their best interests in mind, they are 78% more likely to stay with your organization.7
When employees see how much they are valued, they may become less likely to look for other opportunities with better benefits packages. In fact, another survey found 78% of employees would leave their roles if they felt their benefits packages were inadequate.8 It’s logical that employees may want a job that invests in their health benefits to the fullest. This means not only financially supporting their health but understanding what they need and why.
Employees Want a Hands-On Approach to Their Benefits
According to some of our automotive partners, offering comprehensive benefits to an employee without proper education can be like giving someone a car without the keys. While an online, self-guided enrollment offers a hands-off approach, it may also lead to unanswered questions and the misuse of benefits. Additionally, this can cause HR teams to shift focus to spend more time on benefits education—which 73% of employees claim to need more.9
Rather than reacting to possible gaps in information, consider the more proactive, hands-on approach with how you offer benefits education and enrollment. Many of our automotive partners have shared better success with their enrollments and benefits usage throughout the year when the employees feel educated. This education extends beyond enrollment with elements such as Lunch-and-Learn webinars and downloadable reminders of important benefits dates.
Though retention is an evergreen issue for the automotive industry, employers are continuing to find fresh ways to stand out among the competition. While some of these methods include those listed above, one thing remains clear: curbing recruitment and retention challenges calls for employers to continually evaluate and, if necessary, enhance their current benefits administration.
This blog is up to date as of August 2025 and has not been updated for changes in the law, administration or current events.
