The automotive industry has faced significant talent and layoff struggles in recent years. The rapid advancement of electric and autonomous vehicles has created a demand for workers with specialized skills, leading to a shortage of qualified talent. On the other hand, economic downturns, trade disputes, and shifts in consumer preferences have resulted in workforce reductions as automakers strive to optimize costs and adapt to rapidly changing market conditions.
Throughout 2022, Right Management supported automotive leaders in evaluating current and future readiness of their teams, fostered the growth of key leaders, and assisted the transition of those who were not part of the organization’s future plans.
“Losing my job felt a bit like losing my identity. I lost my routine, my community of work colleagues, and my confidence. Right Management helped me regain my confidence and develop a plan that worked for me.”
“I know that companies have laid people off and left them out to dry. I’m very thankful I didn’t have that. And, investing in outplacement sounds like not just the right thing to do, but the only thing to do.”
After their program, 74% of automotive industry candidates felt prepared for a job search. Compared to the 45% that felt prepared directly after separation.
60% of candidates would still recommend their previous employer as a place to work, and have an overall positive view of the company.
After completing their program with Right Management, 90% of transitioned employees would still purchase and recommend their previous employer's products.
Coaches noticed that most candidates were sad to be selected, but not surprised given market conditions in the auto industry.
Candidates appreciated the check-in from Right Management and they "felt like their employer wanted to ensure their wellbeing."
Candidates felt like the notification process was robotic and failed to address their questions.
Most companies have a need for digital transformation/AI knowledge and these skills are regularly listed in job postings.
Longer tenure leads to a much greater feeling of betrayal at a former employer after separation. Candidates feel as if they invested their life into a company and are left without a parachute.
Many candidates who are separated and have been in the workforce for a long time worry that age will affect their ability to find a new job quickly.
Candidates coming from a position that required very specialized skills have a difficult time branding themselves in a dynamic way. These candidates worry they are not employable in a shifting talent landscape.
Many candidates worry that their compensation levels for new/prospective jobs will be much lower than previously held OEM/Tier 1 comp levels.
Many automotive candidates are tired of the volatility of the automotive industry, and are seeking alternate career paths or industries. Many are trying to rebrand their skills for a different role entirely.
Candidates Referred: 701
Candidates Started: 266
Candidates Referred: 578
Candidates Started: 385
Candidates Referred: 2319
Candidates Started: 1626
Candidates Referred: 92
Candidates Started: 73
Candidates Referred: 28
Candidates Started: 25
Candidates Referred: 22
Candidates Started: 16
Response Count = 8,974
TouchPoint Score Count = 4,013
As global outplacement leaders, we take our candidates’ experience seriously. At the end of each coaching touchpoint, event, seminar, etc., we randomly sample an externally valid population of candidates to determine satisfaction and uncover areas for improvement.
This data is updated monthly and reflects 2022 responses.
To support the auto industry we recommend the following: