From salespeople to mechanics, new car dealerships across the United States employ over 1.1 million Americans with an average annual salary of just under $70,000. Many of these employers offer benefits–99% of franchised dealers offer health insurance while 97% provide 401(k) retirement plans for full-time employees. For employers, managing payroll and benefits can be challenging enough without taking into consideration the high turnover rates of the automotive dealership space. Automotive dealerships are faced with a staggeringly high turnover rate of 46%, caused by high-pressure environments, long work hours, and a high demand for sales targets. Fortunately, by outsourcing HR automotive dealerships can unlock greater efficiency and overcome these persistent challenges.
HR managers typically spend 25% to 30% of their time managing employee benefits. Factoring in all other regular administrative HR tasks, HR automotive departments may be left with little time to focus on other, more strategic initiatives. By turning to an HR outsourcing partner, benefits administration becomes more efficient and cost-effective. A strong HRO should be able to negotiate contracts and buy in volume so that savings are passed on to the automotive dealerships. As a result, employers will be able to offer better benefits packages that can help attract and retain employees.
Improved Compliance
When HR automotive departments decide to outsource to a knowledgeable HRO, they can expect enhanced compliance with applicable payroll, employment, and other related laws. Since the regulatory landscape changes so quickly, having the right partner ensures that your dealership can keep up and accurately meet these changing requirements.
Easily Scale HR
As the average number of employees at automotive dealerships continues to rise, it can be difficult to scale HR departments at the same time. By outsourcing HR automotive dealerships can scale the amount of HR services they need to meet current employee demands. A good outsourcing partner will have the ability to scale their services up or down depending on the number of employees at a given time, whether a company has recently made hires or downsized its staff. This helps organizations control costs and maintain the necessary level of HR services.
Access Experienced HR Talent
For many employers, hiring highly experienced full-time HR professionals can be cost-prohibitive. Especially as a company grows and tasks such as legal compliance, payroll, and benefits administration grow more complex, having access to experienced HR personnel can be a valuable risk mitigation tool. Outsourcing HR functions can provide access to this necessary talent, without placing additional financial strain on an organization.
For automotive dealerships with between 75 and 6,000 employees, Corban OneSource is a trusted HRO partner that can help you achieve greater efficiencies and control costs in your HR department. As a result, automotive dealers can focus on what they do best: getting customers behind the wheel of a vehicle. For almost 30 years, we’ve been helping dealerships improve their bottom line by providing customized HR solutions to fit their unique needs.
To learn more about how we can help automotive dealers improve HR processes, contact our experienced team today.
