What keeps a Service Manager up at night? Watching the best Service Advisors walk out the door…and having little to no idea that they were at their breaking point.

Dealerships invest months in training, relationships with customers have been built, they become part of the team…then they quit. Does any of this sound familiar?

Probably.

The harsh reality is that two out of every five Service Advisors will quit during the calendar year. Besides Sales Consultants, Service Advisors have the second highest turnover rate in the dealership. In 2024 the percentage was 43% according to the NADA Workforce Study.

And this year, it increased. To get more details from the NADA Workforce Study, click here.

Now think about the cost of this turnover trend - recruitment costs, training time & resources, and the impact on customer relationships. A dealership could end up spending thousands of dollars for each departure and new hire.

As frustrating as this is for Service Managers, it is preventable…if you have some insightful data and a little empathy.

Don’t Assume It’s All About the Money

It would be easy to assume a Service Advisor leaves because another dealership is offering more money but typically that’s not the #1 reason why someone leaves.

Not that money doesn’t matter but there tends to be more intangible issues that pile up over time that lead to someone quitting.

As a Dealer Principal, think for a moment about what your Service Advisors deal with every day. Service advisors often must juggle upset customers, the pressure to meet repair order targets, and the challenge of managing technician schedules—all while working with outdated systems or, in some cases, without enough support.

Don’t default to ‘How can we pay them more to stay?’ - instead ask ‘What can we do to make their job more enjoyable and empowering?'

This is the key to retention.

Try Listening Before It’s Too Late 

Most dealerships take a reactionary approach to turnover, waiting for the exit survey (if your store conducts them) to try and string together the reasons why someone is leaving. But by then, your best Service Advisors have already quit, some being poached by your competition across town.

Dealerships who understand the retention problem are flipping the script on this entirely. Many are using employee survey tools from ESi-Q to stay a step ahead of the problem.

Helping you keep your finger on the pulse of what your Service Advisors are feeling about their job gives you a transparent, data-driven window into how to fix the issue now and avoid it in the future. 

For instance, recent industry research has found that defining a career path is the most important factor driving engagement and retention….not compensation. Nearly three out of four dealerships leave employees to chart their own career path, then act surprised when talent walks out the door to competitors who invest in professional development.* 

Three Pillars of Service Advisor Retention - What Works 

Here are three areas where improvements, excluding compensation, could be made to help stem the tide of Service Advisors leaving...

• Alleviate Daily Frustrations - Look at your processes. Do your Service Advisors spend more time fighting internal red tape... than helping customers? Are they often having to apologize to customers for things that are beyond their control? If you identify these daily pain points and fix them swiftly, employee satisfaction increases.

Some will be easy fixes and others may take longer, but if your employees see progress, they will stick around. 

• Create Better Career Pathways - Chances are your Service Advisors would like to know they won’t be stuck in that role forever. They need to see a future beyond writing ROs. Cross-training in other departments can help or create a path to management. Either way, they feel there is somewhere to go rather than being stagnant. 
• Real Recognition - The ‘Employee of the Month’ award simply isn’t enough to motivate any dealership employee. Recognizing your Service Advisors for specific accomplishments like going above and beyond for a customer or even helping to mentor others rewards them in a meaningful way. 

A Few Red Flags to Look For 

There are some warning signs that seem to be prevalent among employees looking to leave… 

• Less voluntary collaboration with colleagues
• Reluctance to take on any new responsibilities if asked
• Decreased participation in meeting or staff events
• An increase in customer complaints

And when another dealership is trying to recruit your Service Advisor, there isn’t always a clear ‘sign’ that is happening but it happens a lot. Competing dealers will always want the best Service Advisors and will be aggressive in bringing them over.

And if you are not digging into why someone would think of leaving, you better believe the dealership down the street will find out and offer a seemingly better opportunity. 

Pulse Surveys Can Be Your Secret Weapon and How to Use Them 

Employee surveys can be your early warning system that something is wrong before a Service Advisor leaves. Dig deep, go beyond the standard “Are you satisfied?”. Ask the hard questions and be prepared to hear some tough truths. 

Deploy surveys often, not just when someone leaves. ESi-Q can help tailor surveys and analytics to your specific dealership and your concerns. 

And one more point… close the loop on the feedback. There is nothing worse than offering honest feedback and feeling like it’s ignored. Take action, share results with the staff, and make a public commitment to fixing the things that are broken. 

And remember, it’s no longer just about keeping good people, it’s about staying competitive in a tight labor market.

The question is no longer can you afford to invest in Service Advisor retention. It’s whether you can afford not to. 

Frequently Asked Questions 

1. Why do service advisors leave so often?

While pay can play a role, it’s rarely the top reason. Many service advisors leave because of daily frustrations, lack of recognition, or not seeing a clear career path. These issues build up over time and push even your best people to look elsewhere. 

2. How does service turnover impact a dealership?

Losing a service advisor is expensive. Between recruiting, training, and rebuilding customer relationships, a single departure can cost thousands of dollars and not to mention the disruption to team morale, time spent training, and service quality. 

3. What can dealerships do to improve service advisor retention?

The most effective strategies go beyond compensation. Dealerships can alleviate daily frustrations, create clear career pathways, and provide meaningful recognition. These changes help service advisors feel valued, empowered, and motivated to stay. 

4. How can dealerships reduce turnover?

ESi-Q provides employee pulse surveys and analytics that give managers real-time insights into how their teams are feeling. By identifying frustrations early and acting on feedback, dealerships can address issues before they lead to resignations and help retain top talent and strengthen customer service.

*Data from ESi-Q, Quantum5's research division, the automotive industry's leading researcher of automotive employee data. ESi-Q has conducted over 25,000 surveys and, in partnership with NADA, collected nearly three-quarters of a million payroll records from retail employees across leading private and public dealership groups.