Annual research by BDO into dealer staff pay has begun.
BDO conducts the salary survey in order to provide dealers with a guide on current levels and trends of remuneration packages in the industry. It says the survey is a powerful tool in managing the HR process.
It reports on 27 positions and we will collate all the information and produce a detailed salary benchmark survey for the industry with some thought leadership around the results, whilst reviewing key changes through the past few years.
Only dealerships that submit information for BDO’s survey will receive a free full copy of the report.
The purpose of the salary survey
James Evans, BDO audit manager, said: “This expense category accounts for approximately 50% of the gross profit and in an industry which has tight margins meaning ensuring you are remunerating the best people is key.
“Our view is that better results are achieved where you follow the principle of paying fewer good people more money, and we are often asked, ‘what is the market rate of remuneration for a particular position’.
“For most businesses, and certainly dealerships, strong leaders are the difference between success and failure and remuneration is a fundamental ingredient in attracting and retaining the key people in your dealership.”
2016 BDO salary survey key findings
BDO’s annual motor salary survey showed that the average base salary in 2016 was £35,000 compared to £32,000 the previous year. A further £14,000 is available in commissions and benefits, up from £11,000.
Managing director and chief executive pay was an average £208,000 (up 15% on 2015 at £181,000).
Finance directors receive an average £140,000 (+1.5% on £138,000 in 2015).
And a dealer principal was earning an average £116,000, up 23% from £94,000.
Excluding key executives from the data, the average salary of staff at businesses with less than £100 milllion turnover, is £37,000 (2015: £34,000).
On average, almost 30% of total earnings continues to be commission driven – up from 25% in 2015.
How can you submit data for the 2017 salary survey?
Email Evans at email@example.com for a survey form or for more information.
BDO will not ask for employee names and all data collected will remain absolutely confidential. The data collection process will not include any reference to your dealership and will only contain our survey code.
The employees entered in the survey should represent a cross section of the various positions in the dealership and should include all management positions.
The closing date for data entry is Friday, August 25.
BDO expects to release its seventh annual salary survey results in late September.