BDO Automotive Executive Salary Survey 2014 - Highlights
10 February 2015
Automotive-salary-survey-2014-highlights.pngThe 2014 Automotive Executive Salary Survey shows that on average remuneration for most dealership executives was less compared to the 2013 survey results. This reduction is due to the incentive component of the total salary package being less, which is consistent with the downward pressure on gross margins and overall dealership profitability that has been seen for the financial year ended 30 June 2014.
Employee costs are the largest expense in any dealership, accounting for approximately 60% of gross profit, and with market pressures on margins, expense management is critical to sustained profitability. This survey will prove a useful tool in the management of employee costs by allowing dealers to evaluate their executive employee costs against national and state averages.
We believe the survey offers the following benefits:
- Better informed – with current indicative market information you will be more informed and confident your remuneration plans are comparable to the market.
- Increased productivity – where you can demonstrate to your Managers that their remuneration is consistent with the market, there is typically less staff turnover, better morale and increased levels of productivity.
- Increased profitability – where productivity can be increased through effective salary packages, profitability is guaranteed to follow.
The survey primarily focuses on remuneration in the form of financial rewards, however we recognise the value of a number of other innovative strategies available to reward staff and increase morale. These strategies often involve little financial burden and have positive long term benefits in terms of morale and staff retention.
Our sincere thanks to those dealers who have invested the time to participate in this survey. Without your support the survey would not have been possible.
To request a copy of the survey and purchase the data please click here.