STAFF turnover in franchised dealerships has reached 'horrifying' levels as employees chase higher salaries elsewhere. Despite inflation-beating average pay rises of 4.5% during the last year, a quarter of franchised dealers, independent garages, and bodyshops lost more than 25% of their staff over the same period, according to a new survey by the Retail Motor Industry Federation and Sewells International.

The 'Retail Motor Industry Pay Guide' has calculated that this rapid turnover is costing the average franchised dealer £50,000 a year. It also revealed that just under two thirds of franchised dealers, and nearly a half of independents had trouble recruiting staff, particularly in their aftersales department.

Christopher Macgowan, RMI chief executive, said: 'The results of this survey have highlighted some very interesting, and some very worrying facts. The enormous cost to the average franchised dealer of the staff turnover they experience is horrifying. As an industry, we must look at what we can do to reduce that figure.