Many things keep an auto dealership owner up at night; inventory issues, chip shortages, flooring costs, employee retention/acquisition, customer satisfaction, cut throat competition etc. The list goes on and on. HR/Payroll and Benefits is an area that should not be keep you up at night. Properly handling and potentially outsourcing this department to a PEO (Professional Employer Organization) could provide many benefits for your bottom line and sleep. It could free up department heads of menial tasks, allowing them to think more strategically. Also, money could be saved by not having to hire employees to manage payroll/HR/benefits. Support in this department can be custom tailored to your needs as an auto dealership owner, so you can sleep well at night and focus on growing your business instead of working in your business.
Freeing up HR/payroll/benefit specialists from menial tasks allows for more strategic and creative thinking. This in turn can improve morale and efficiencies in these areas. Once morale and efficiencies are improved managers can devote more time to actually fulfilling their job responsibilities rather than getting bogged down with administrative tasks. Efficiency and creative thinking in these areas ultimately lead to happier employees and more profit.
PEO stands for Professional Employer Organization. As a co-employer of your dealership and employees of other businesses, PEO’s are able to negotiate cheaper health insurances rates due to the large number of employees in their pool. They also are able to lower health insurance costs by setting up their own self funded plan with stop loss coverage. Under the PEO model, your company taxes etc. are filed under the PEO’s EIN. This provides the PEO an interest in keeping your dealership HR/payroll/benefits compliant. They have a mutual interest in keeping these areas nice, tidy and compliant as their EIN is on the line. Some dealerships take full advantage of this relationship by completely outsourcing all payroll, HR and benefits to the PEO. Dealerships doing this are able to save a lot by not having to hire employees to manage and work in these departments. As mentioned earlier, the PEO can custom tailor their support in each of these areas to best suit each dealership’s needs.