With the new financial year now upon us and last year’s group certificates starting to make their way out to employees, now is often the time that requests for a remuneration increase are made. For some dealerships, they will take ownership of this common occurrence and conduct their own reviews of the market trends, and then compare against their current remuneration packages and the employees performance. The following summarises current trends in annual remuneration packages being offered by automotive dealers. These figures are based on our observations, discussions with dealers, candidates and assignments undertaken over the last 12 months:
General Manager – Salaries tend to fall between $100,000 to $150,000 + superannuation and one or two vehicles. Depending on the size of the operation, an earning capacity of around $150,000 to $300,000 is common. Incentives often consist of multiple, mixed targets. Higher examples have been seen, though they are not as common.
Financial Controller – Salaries tend to fall between $100,000 to $150,000 + superannuation and a vehicle. Depending on the size of the operation, an earning capacity of around $120,000 to $200,000 is common. Incentives often consist of multiple, mixed targets, centered around net performance. Some dealerships may employ a Financial Controller, however their size and administrative requirements may be more reflective of a Dealership Accountant position.
Fixed Operations Manager – Salaries tend to fall between $80,000 to $100,000 + superannuation and a vehicle. Depending on the size of the operation, an earning capacity of around $130,000 + is common. Incentives often consist of multiple, mixed targets, centered around net profit, efficiency, sales volume and growth. Some dealerships may employ a Fixed Operations Manager, however their size and aftersales requirements may be more reflective of a Service Manager, who also happens to “oversee” the parts department.
General Sales Manager – Salaries tend to fall between $70,000 to $120,000 + superannuation and a vehicle. Depending on the size of the operation, an earning capacity of around $150,000 to $250,000 is common, though we have spoken to candidates who are on higher. Incentives often consist of multiple targets, centered around volume, growth, CSI / CE, overall profit and average unit profit. Some may also have incentives reflective of performance in finance, insurance and aftermarket. A common role in multi-franchise, high-volume sites, the GFC prompted the removal of a number of these roles in medium sized dealerships. They are slowly making a comeback, but more so as a Sales Manager of the dealerships “primary” franchise, with oversight of the other brands and used vehicles.
Sales Manager (new or used) – Salaries tend to fall between $55,000 to $70,000 + superannuation and a vehicle. Depending on the size of the operation, an earning capacity of up to $150,000 is common, though we have spoken to candidates who receive up to around $250,000 where volume or luxury brands are concerned. Incentives often consist of targets centered around volume, growth, CSI / CE, overall profit and average unit profit. Some may also have incentives reflective of performance in finance, insurance and aftermarket.
Finance and Insurance Manager / Business Manager – This is an area where we have seen tremendous volitility due to the attention of ASIC on flex commissions and add-on insurance items. Salaries tend to fall between $45,000 to $55,000 + superannuation and either a car or car allowance, though some dealerships offer neither. Depending on the size of the operation, an earning capacity of up to $150,000 used to be the norm, though this seems to have come back to closer to the $100,000 mark. Candidates working within a luxury brand appear to be better protected against the ASIC changes, as their products appear to be tailored to a more “astute” buyer.
Parts Manager – Not a dramatic amount of movement in this space like there has been in others. Salaries tend to fall between $60,000 to $80,000 + superannuation and a vehicle. Depending on the size of the operation, an earning capacity of $80,000 to $130,000 is normally what we see. Incentives often consist of targets centered around volume, growth, shrinkage and overall profit.
Service Manager – A slight increase in base salaries is being seen, in order to attract a better range of candidates. Salaries tend to fall between $60,000 to $75,000 + superannuation and a vehicle. Depending on the size of the operation, an earning capacity of $90,000 to $150,000 is normally what we see, with the lower range reflective of a smaller dealership. Incentives often consist of targets centered around labour sales, efficiency and profit.
Dealership Accountant – A slight increase in base salaries has been noted, with a greater emphasis being placed on candidates with CPA or CA qualifications. Salaries tend to fall between $80,000 to $100,000 + superannuation and a car or car allowance, though some dealerships offer neither, or do so after a qualifying period. Depending on the size of the operation, an earning capacity of around $110,000 to maybe $120,000 can be expected. Incentives are not often paid, but when they are, they generally consist of targets focused on processing time and occasionally net profit improvement.
Parts Interpreter – Not a lot of change in the remuneration of these roles. Salaries tend to fall between $45,000 to $55,000 + superannuation and incentives. Depending on the size of the operation, an earning capacity of around $50,000 to maybe $65,000 can be expected, with incentives focused on sales performance.
Service Advisor – We are starting to see changes to the rewards offered in these roles, not necessarily in terms of monetary increases, but more so in terms of flexible working arrangements and reduced hours. Which at the end of the day really does mean the same thing, in that staff are being paid in some cases the same base salary and OTE, but are working less hours. Salaries tend to fall between $45,000 to $55,000 + superannuation and incentives. Depending on the size of the operation, an earning capacity of around $60,000 to maybe $90,000 can be expected, with incentives focused on CSI and sales performance. We have heard of Service Advisors in luxury brands having a higher level of earnings.
Administration Clerks – Not a great deal of change in the pay scales for these roles in terms of averages, but we have seen the occasional Administrator who through longevity, has grown to be on quite a considerable package. Salaries tend to fall between $45,000 to $60,000 + superannuation and possibly some small incentives, though it is rare. Premiums tend to be paid for supervisory roles and also if a volume or prestige brand is in the mix.
Mechanic – Continued high-demand exists to find suitably trained Technicians who are not looking for a mining hourly rate. Hourly rates tend to fall between $25 to $35 + superannuation, but to source a suitable mixture of applicants you really need to be better than $30, or offer something that others do not, such as reduced hours, flexible hours, higher annual leave etc. Some incentives are offered based on productive hours and other metrics.
Some recent offers we have seen:
Dealer Principal / General Manager:
- $150,000 + superannuation + car + incentives (Qld)
- $135,000 + superannuation + car + incentives (SA)
- $170,000 + superannuation + car + incentives (SA)
Financial Controller:
- $90,000 + superannuation + car + incentives (NSW rural)
- $181,000 + superannuation + car + incentives + other (Qld)
- $120,000 + superannuation + car + incentives (Qld)
- $110,000 + superannuation + car + incentives (Qld – Assistant FC)
Fixed Operations Manager:
- $80,000 + superannuation + car + incentives (Qld)
- $130,000 + superannuation + car + incentives + accomm (PNG)
Sales Managers:
- $65,000 + superannuation + car + incentives (Vic)
- $75,000 + superannuation + car + incentives (Vic)
- $52,000 + superannuation + car + incentives (Qld)
- $80,000 + superannuation + car + incentives (NT)
- $60,000 + superannuation + car + incentives (Qld)
- $78,000 + superannuation + car + incentives (NSW)
Business Managers:
- $45,000 + superannuation + car + incentives (Qld)
- $42,000 + superannuation + car + incentives (Qld)
- $65,000 + superannuation + car + incentives (Vic)
- $50,000 + superannuation + car + incentives (NSW)
- $50,000 + superannuation + car + incentives (Qld)
Parts Managers:
- $75,000 + superannuation + car + incentives (Qld)
- $80,000 + superannuation + car + incentives (NSW)
- $75,000 + superannuation + car + incentives (Qld – group role)
- $75,000 + superannuation + car + incentives (NSW – rural)
- $55,000 + superannuation + car + incentives (NSW – rural)
Service Managers:
- $70,000 + superannuation + car + incentives (Qld)
- $150,000 + superannuation + car + incentives (Qld – group role)
- $65,000 + superannuation + car + incentives (Qld)
- $55,000 + superannuation + car + incentives (Vic – rural)
- $80,000 + superannuation + car + incentives (NT)
- $75,000 + superannuation + car + incentives (Vic)
Service Advisors:
- $50,000 + superannuation + incentives (Qld)
- $40,000 + superannuation + incentives (Qld – rural)
- $55,000 + superannuation + incentives (WA)
- $55,000 + superannuation + car + incentives (NSW)
- $50,000 + superannuation + car + incentives (Vic)
Administration Clerks:
- $50,000 + superannuation + incentives (Qld – Reception / Admin)
- $50,000 + superannuation (Qld – Stock Controller)
- $60,000 + superannuation (NSW – AR Officer)
- $45,000 + superannuation (Qld – Service Clerk)
- $50,000 + superannuation (NSW – AP Officer)
- $50,000 + superannuation (Vic – Registrations Clerk)
- $55,000 + superannuation (NSW – Registrations Clerk)
Mechanics:
- To $40 per hour + superannuation + 5 weeks leave (Qld – rural)
- $28 per hour + superannuation (Qld)
- To $35 per hour + superannuation + OT + incentives (Qld – prestige)
- To $35 per hour + superannuation (WA)
- $28 per hour + superannuation (Vic)
- $29 per hour + superannuation (Vic)
- $35 per hour + superannuation + incentives (NSW – prestige)
