What Dealerships Need To Know About Gen Z Employees in 2025

Every generation brings something different to the workplace. Generation Z — those born between 1997 and 2012 — now makes up about 27% of the workforce and is projected to reach 30% by 2030. As they move from dependents to full-time employees, dealerships need to understand what this group values in a career.

CDK’s 2025 Dealership Workplace Study surveyed hundreds of dealership employees to better understand their feelings about working at automotive dealerships. Looking at Gen Z specifically, the results reveal trends that dealers should keep in mind as they shape today's workplace and prepare for tomorrow's.

Gen Z Is Happy but Misunderstood

National data often shows younger workers are less satisfied than older ones, but the automotive dealership environment appears to be an exception. Our study found that Gen Z reports higher job satisfaction than any other generation in dealerships, suggesting the automotive retail industry may be addressing specific Gen Z workplace needs better than other sectors. Nearly three in four (72%) say they have no plans to leave in the next six months.

Still, there's a disconnect. Other generations in the dealership describe Gen Z as the least engaged, raising questions about whether older generations are misreading younger workers' efforts or have different expectations. Dealers may want to focus on bridging generational gaps so older employees can see Gen Z's contributions more clearly and vice versa.

Work/Life Balance Wins

For Gen Z, it’s not all about the paycheck. They want jobs that enrich them both on and off the clock, with discounts and benefits. In fact, they value perks like gym memberships and education loan assistance far more than other generations. Flexible work, like the ability to work remotely at least some days of the week, was also a top program that attracts and supports Gen Z workers. 

Dealerships can strengthen retention by expanding benefits beyond the basics. Flexible scheduling or occasional remote work, paired with discounts and wellness perks, shows that dealerships are investing in employees' lives outside of work.

Feeling Undervalued

Here’s where dealerships face their biggest challenge with Gen Z. They earn less than older generations, likely due to their inexperience, but only one in three feels their pay reflects their efforts and skill level. That leaves a majority feeling shortchanged.

While dissatisfaction with compensation aligns with national trends — about 70% of all workers feel underpaid — CDK's study revealed Gen Z feels their compensation is the least fair among generations in automotive retail. Gen Zers lack confidence in their individual compensation and feel the compensation isn't competitive and doesn't encourage hiring or retention.

Dealerships can help make progress with Gen Z's attitudes toward compensation by regularly reviewing pay scales, tying bonuses to performance metrics, and showing younger workers how their compensation can increase with tenure. These steps help build confidence that dealership pay is both fair and future-focused.

Here Today, Gone Tomorrow

In the short term, dealerships seem to have cracked the code with Gen Z: They're the most satisfied generation in automotive retail. But the long-term outlook is more concerning. Over the next five to 10 years, more than half say they're open to leaving or definitely see themselves outside the industry.

The biggest stressors driving this sentiment are difficult customers, economic uncertainty and pay structure. To counter this, dealerships can create advancement paths that show Gen Z there's a future worth staying for, with leadership roles, skills training and career growth.

Building the Future Workforce

Dealerships have proven they can create an environment where Gen Z feels satisfied in the short run. The challenge now is turning that satisfaction into long-term commitment. By bridging gaps between generations, broadening benefits and keeping compensation transparent, dealers can build on today's success and secure tomorrow's workforce.