As a dealer, you likely frequently face the debate of how to allocate your budget and resources to make your dealership more profitable. Most dealerships have between nine and 25 systems in place to effectively run the business – and the decision of which new technology to invest in is often overwhelming.
With hundreds of technology solutions available to dealerships today – including dealership management systems, inventory management systems, website providers, CRM systems, reputation management solutions, and more – it can be difficult to determine which solutions are worth the investment.
When debating between countless solutions for your dealership, a hiring and talent management system is one solution you shouldn’t overlook. Experts predict automotive sales will soon plateau, and with an expected decline in sales, your employees will be your main source of competitive advantage. A talent management system can help you hire and retain the right people by offering the following benefits:
Streamline Your Hiring Efforts
If your dealerships still relies on outdated, paper applications, it will likely turn potential candidates away. Since most job-related research today is completed online, your dealership should support simple online applications directly on your career site. And to save time and resources on your end, rather than reviewing each application manually, leverage a hiring and talent management platform, which enables you to automatically send skills assessments once candidates submit an application and manages all other steps in the hiring process.
When an applicant receives high marks on a skills assessment, a hiring platform will help you move the applicant to the candidate stage and usher them through each step of the hiring process – including scheduling and completing interviews, and completing background and reference checks – quickly and efficiently. Completing each step of the hiring process will help ensure you’re hiring the most qualified candidates, and doing so quickly will help your dealership hire top candidates before the competition.
Centralize Your HR Processes
With so many solutions in place to run your dealership, you may have lost count of how many systems you use for various HR processes. For example, you could have different systems for onboarding, taxes, benefits administration, hourly time tracking, and time off tracking. If you run multiple dealership locations, you may be using different systems at each of your locations – and even have several employees running payroll and other HR processes. By working with an integrated hiring and talent management system, you can have more centralized, automated HR capabilities and reallocate or remove unnecessary resources, ultimately making your business more profitable.
Continuously Improve Your Talent Management
Not only does a talent management system improve the efficiency of your HR processes, but it can help you continuously improve how you manage people at your dealership. An integrated hiring and talent management system includes easily accessible robust analytics so decision makers at your dealership can see such insights as hiring velocity and hiring process adherence across locations and managers – and in comparison to industry benchmarks. A talent management system also highlights critical business metrics that can help you spot red flags in your HR processes – including high overtime costs, paid time off usage, turnover rates, and employee profitability.
Run More Accurate Payroll
One of the key challenges dealerships face when it comes to payroll is accurately tracking flag time for service technicians. Today, many dealers still manually track flag time using antiquated spreadsheets, which poses a risk for human error, and takes up valuable time and resources. Using a talent management system, you can run more accurate payroll through automated flag time calculation. If you don’t pay your employees with complete accuracy, chances are they won’t stay with your dealership for too long – and might even take legal action.
An automated payroll experience helps you better track time and attendance – including flag time – and ensure you’re paying employees both accurately and on time, by removing the possibility of human error or a misplaced spreadsheet. In addition to improving accuracy, automated flag time calculations save your dealership time and money and enable service managers to spend time on other tasks that can help the dealership increase profitability.
An integrated hiring and talent management system comes equipped with all the tools and reports needed to maintain compliance – and flag compliance risks – including employee verification, tax compliance, minimum wage and overtime compliance, equal employment opportunity compliance, and more. It also includes automated tax and reporting capabilities, such as: electronic IRS filing and pay withdrawals, automated reporting and data pulls, quarterly online tax statements, and new hire reporting. Keeping up with constantly changing state and federal compliance regulations can be a never-ending cycle for any dealership, but automating your HR processes enables you to stay compliant without spending time manually tracking each compliance update.
Since your dealership likely has more than a dozen systems in place to run the business, centralize your employee management – from hire to retire – by investing in a hiring and talent management platform, rather than running various HR processes across multiple disjointed systems.
For more information on using a talent management system to turn your people into a source of competitive advantage, download our eBook, “Planning for People in Retail Automotive.”