The retail automotive industry is one that requires very efficient management to be successful. Companies that compete in the sector often have cyclical demand that relies on volatile consumer buying confidence, gasoline prices and seasonal change. As such, continuously minimizing costs while maximizing productivity is essential. For these companies, whether it’s a service or sales organization, labor continues to be among the greatest costs, which is why managing employee time is essential, and why investing in an automated timesheet and scheduling software solution is so important.
Challenges for Retail Automotive Companies
Whether you’re a parts retailer, a dealership for new and used vehicles, or both, the expense of your staff is a major part of your profitability. Perhaps no tool or technology can minimize the cost of wages, overtime, payroll taxes and administration better than an automated time clock and timesheet system. Also, this essential record keeping tool can be an enormous help in keeping you clear of audits, investigations, and fines resulting from non-compliance for federal and state labor laws. You can not only save drastically on cost, but also in convenience.
Automotive Labor Compliance
Although inexpensive, an automated timesheet and scheduling software can be an immense savings tool for retail automotive groups, particularly when it comes to compliance.
The Department of Labor (DOL) oversees the Fair Labor Standards Act (FLSA), which among other things requires employers to follow guidelines for overtime and minimum wage pay. DOL audits and fines have been on the rise for a number of years, and compliance issues can be more common than discrimination and harassment cases.
One of the most common compliance issues among automotive organizations is employers misclassifying hourly and exempt employees. There many departments and skill types required to run an automotive operation, from auto sales and parts personnel to mechanics, service salesmen, and finance administrators. Needless to say it is essential to understand the definitions and exemption eligibility for these types of positions.
Tracking Hours for Hourly and Exempt Employees
While some of these positions are eligible for exempt status, others fall under hourly employment. Using a convenient, affordable scheduling and time card software to track employee hours near-effortlessly is a huge time and cost saver for employers. Further, as of December 1st, 2016, salaried employees earning less than $47,476 annually will be entitled to overtime pay as a result of new FLSA overtime guidelines. This change will require employers to accurately track those hours in order to remain compliant and accurately pay overtime, which can be a challenge for mechanics and other job types that earn commissions.
Try Automated Timekeeping
Automated timekeeping is a great asset for employers. With a simple, affordable timesheet and scheduling solution, creating service schedules can be done in minutes. It becomes as simple as drag-and-drop, while recording labor by department, job code or other pay type is equally as convenient. Tracking employee hours becomes automatic, and staying compliant with audit-ready records is systematic.
Good record keeping will go a long way to avoid audits, fines and employee grievances. Perhaps more importantly, an automated timesheet solution will help you minimize the cost of employee labor, overtime and other administrative costs tied to employing staff. Contact us at 941 Timekeeping to learn more about time tracking solutions for the automotive industry.