Overall staff turnover in the retail motor sector is improving according to the 2005 edition of the Sewells/Retail Motor Industry Federation Retail Motor Industry Pay Guide.

The high turnover of staff that has resulted in rising costs for the industry in recent years has levelled off. Although independent garage staff turnover rose by one per cent to 16 per cent, franchised dealers recorded an average 18% staff turnover, a two per cent drop.

Importantly the long-term trend in staff turnover is down for both sectors.

An increase in the ratio of apprentices to technicians among authorised repairers may also ease the trade's skills shortage.

Basic pay increased by an average of 3.4%, above the general rate of inflation of just over 2 per cent, but below the increases for 2001/2002 (3.8%) and 2002/2003 (3.7%).

Matthew Carrington, RMI chief executive, says: "High levels of staff turnover lead to increased recruitment costs, training costs, and pay inflation, so these results are a welcome indication of a staff turnover slowdown. Although we do not want to be over-optimistic based on one year, there is every reason to believe that the industry is moving in the right direction.

"The guide suggests our sector is responding to some of the challenges revealed in previous editions. While this apparent turnaround is good news, the effects of skills shortages and high staff turnover are still with us. Basic and total pay for franchised dealer technicians is still increasing at nearly three times inflation, and survey respondents confirmed ongoing problems with turnover and recruitment of technicians."

The 2005 Sewells/RMI Retail Motor Industry Pay Guide covers pay, conditions and benefits for 33 franchised dealer jobs (26 of them broken down by nine UK regions), and 20 independent garage jobs (15 broken down regionally).

Data for the massive statistical analysis required was drawn from questionnaires completed by 611 RMI members, including 205 franchised dealers, 351 independent garages and 55 stand-alone bodyshop businesses. Altogether, these responses gave details for 13,406 employees. Data from five leading franchised dealer groups covered their combined 442 dealerships.

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The 2005 Sewells/RMI Retail Motor Industry Pay Guide, sponsored by Maritz, the world's largest source of performance improvement, travel and marketing research services, is available now from Sewells Information & Research in collaboration with the RMI. It is priced at £149.95. Click here to buy.

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