Why You Shouldn’t Run Your Payroll Through Your Dealership Management System

By Beth Kempton,
May 17, 2017

A dealership management system (DMS) helps dealers manage key facets of the business, including inventory, sales and service operations, but has limitations when it comes to HR capabilities. Using a DMS for payroll and talent management often requires time intensive workflows to pay employees, administer benefits and run other HR processes.

Rather than relying on your DMS as an HR tool, leave it to what it’s best at – tracking critical business metrics to help improve sales and customer service. If you’re looking to make your payroll and overall talent management capabilities more efficient, consider the following benefits of using an integrated hiring and human capital management solution.

Streamline HR Processes

By using your DMS to run payroll, you may not even be aware of how many other 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 human capital solution instead of running your HR processes through a DMS and countless other systems, you can have more centralized, automated HR capabilities and reallocate or remove unnecessary resources, ultimately making your business more profitable.

Track Vacation Time and Paid Leave

If your DMS doesn’t track how much vacation and sick leave each of your employees is taking, chances are you either don’t have a system in place for tracking it or do it manually – which can be costly and time consuming. By instead running your payroll and other HR processes on a human capital management solution, you can get notified each time an employee approaches his or her paid time off limit – and ensure your dealership doesn’t lose money due to employees taking too much time off, and that your dealership supports a compliant PTO policy.

Automate Flag Time Calculations

From the risk of running an incorrect payroll to spending valuable time updating a manual spreadsheet in your DMS, flag time calculations for service workers can be a significant burden. By automating payroll, you can avoid the risk of human error when it comes to flag time calculations – and save your dealership time and money. Automated payroll can also help your dealership retain service workers by ensuring they’re always paid with complete accuracy. By using an integrated system for flag time, you can ensure your employees are paid correctly while cutting hours out of the payroll process.

Prevent Costly Overtime Pay

Do you know how much overtime you paid last pay period? Do you get notified when employees are approaching overtime? If you don’t track overtime, annual spend for overtime pay can end up hurting your business in the long run. By running your payroll through a human capital management solution, managers and business owners can receive notifications each time an employee is approaching 40 hours, to prevent costly overtime. Over the course of a year, this simple, automatic change can save tens – or hundreds – of thousands of dollars.

Maintain Compliance

Moving away from manual HR processes – such as manually entering payroll into a DMS – can help your dealership maintain compliance. An integrated human capital management solution comes equipped with all the tools and reports needed to maintain compliance, including employee verification, tax compliance, minimum wage and overtime compliance, equal employment opportunity compliance, and more. 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.

Interested in learning more about how to automate and improve your dealership’s HR processes? Read about our payroll solution here and sign up for a demo today.

About the Author

Beth is the content strategist on Hireology’s marketing team, responsible for creating compelling blog posts, eBooks, marketing materials and other content. Her background includes five years of experience at a B2B digital marketing agency, where she crafted content for a variety of clients, including several in the HR technology space. Before beginning her career, Beth attended Loyola University Chicago, where she studied advertising and public relations.

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