Dealership Hiring: Promote from Within or Hire Externally?

While employee turnover is never ideal, it’s inevitable. Dealership leaders come and go—whether due to career shifts, retirement, or simply seeking new opportunities. When that time comes, the goal should always be to trade up—bringing in a leader who can elevate the team and strengthen dealership operations.

So, how do you choose the right approach? Do you promote from within or hire externally? Let’s break down the pros and cons of each.

Benefits of Hiring Externally:

Bringing in leadership from outside your dealership has its advantages, especially when looking for new ideas, expanded skills, and fresh energy.

1. Fresh Perspectives – External hires bring new strategies and insights that can modernize dealership operations and challenge outdated processes.
2. Expanding Your Talent Pool – Looking outside your dealership lets you access a broader range of experienced professionals who can introduce best practices from other successful dealerships.
3. Faster Onboarding – An experienced hire may require less training and can hit the ground running faster than someone new to leadership.
4. Strengthening Your Reputation – Consistently recruiting high-quality talent signals that your dealership is growing and investing in leadership. This can also help attract top-tier sales professionals and service advisors to your team.

Potential Drawback – If an external leader brings their own team, be mindful. If they leave, they might take key employees with them. Ensure you’re hiring someone committed to your dealership’s long-term success.

Benefits of Promoting Internally:

Many dealers find that investing in internal leadership development leads to stronger team loyalty, cost savings, and long-term stability.

1. Employee Motivation & Retention – When employees see a clear path for growth, they’re more likely to stay. A lack of advancement is one of the top reasons employees leave a dealership.
2. Cost Savings – Internal promotions reduce recruiting costs and onboarding expenses. Plus, employees promoted internally may be willing to grow into their salary, rather than demanding top-tier pay upfront.
3. Cultural Fit – Employees who have been with the dealership already understand your values, customer service expectations, and sales processes.
4. Higher Loyalty – Employees promoted internally often stay longer and are less likely to leave for a small pay increase at a competing dealership.
5. Retention of Training Investment – Training new employees takes time and money. Developing leaders from within ensures you benefit from your investment in their growth.
6. Customer Relationships – Long-term employees build trust and loyalty with customers. Having familiar faces in the dealership enhances the customer experience and improves repeat business.

What’s the Best Strategy? A Balanced Approach

Selecting the right leader is one of the most critical decisions you’ll make when shaping your dealership’s future. A balanced approach—promoting from within while also bringing in fresh talent—ensures you maximize both cultural continuity and innovation.

At the end of the day, the dealership with the best people wins. If you’re looking for expert guidance in building a strong leadership team and optimizing your dealership’s operations, Brady Ware’s dealership consulting team is here to help. Contact us today to learn how we can support your business’s growth and long-term success.