How many times have you taken a peek at what a competitor is paying, maybe called a buddy in the industry or your competitor next door?
We all do it. It feels safe. It feels easy. But here’s the brutal truth: copying your competitors is the fastest way to blend into the crowd and get subpar results.
The Problem: Following the Competition
Here’s what you’re missing when you just copy someone else:
- You have no reliable data to know what competitors are actually paying.
- Differences in cost of living, workforce demographics, and experience levels mean what works for them won’t work for you.
- Junior teams might skew average wages lower, but your team could be more experienced, expecting better pay.
- You’re re-using the same HR ideas, the same pay structures, the same benefits… which means your dealership doesn’t stand out.
The result? Talent leaves for someone who actually understands what they want, your team feels undervalued, and your equipment dealership struggles to attract top performers.
The Fix: Build a Compensation System That Works for Your Equipment Dealership
The solution isn’t guessing or copying, it’s data-driven, customized, and strategic. Here’s how top-performing equipment dealerships do it:
1. Benchmark Using Reliable Data – External surveys with large sample sizes give you an accurate picture of what the market is paying. No more guessing.
2. Listen to Your Employees – Understand what matters to your team. Is it pay? Flexibility? Health benefits? Recognition? Do a survey to find out.
3. Custom HR Programs – Hire HR professionals, in-house or external, to design programs tailored to your dealership, not the dealership down the road.
4. Skill & Performance-Based Pay Structures – Don’t give automatic raises. Reward employees based on experience, skill, and performance. If they aren’t performing, have the tough conversation, rather than ignoring it.
5. Incentive Programs That Actually Work – Reward both individual AND team performance. Programs that only reward the individual can kill collaboration (ex. I don’t want to teach the apprentice because it will lower my productivity bonus). Keep it simple, clear, and motivating.
6. Benefits That Fit Your Workforce – Service Technicians and office staff have very different needs. Consider:
- Wellness accounts for ergonomic chairs for office staff
- Coverage for paramedical needs like massage, chiro, or physio for technicians
Investing in the right benefits keeps your team healthy, reduces downtime, and lowers long-term benefits costs. Healthy employees = productive employees = happy managers = satisfied customers.
What to Do Next: Become the Employer of Choice
The dealerships that attract, retain, and develop top talent don’t copy — they lead. They use data, listen to their employees, and create HR programs that actually matter.
Book a free HR strategy call at Mpeoplesolutions.com. We’ll review your current compensation package (we’ll also give you direct access to our exclusive Benefits Broker, Colin Ferguson at Quinn Advisory for a free benefits benchmarking assessment), identify gaps, and give you actionable feedback so you can stop losing talent and start building a team your competitors envy.
Because here’s the bottom line: copying someone else’s pay and benefits might seem like a great idea, but you aren’t standing out as the employer of choice and you are losing candidates/employees.
