Outside sources can save you time and paperwork
One way I've been trying to get a better handle on all that various paperwork vying for my attention is by talking with other shop owners about what types of shop office operations they've outsourced. If there's a cost-effective way to reduce the responsibilities my office staff and I have, we may be able to better focus on the things that are most important to the business. As a result, maybe we can tame the paperwork beast — if even just a little.
I've gone back and forth in the 20 years I've owned the shop, for example, on whether to do payroll in-house or to use a payroll service. Payroll is currently one of my responsibilities, and in addition to the paperwork it entails, it requires that I be here on two payroll days each month — which can sometimes make it hard to attend meetings, classes or industry events that inevitably seem to fall on one of those days.
On the other hand, it hasn't always gone smoothly when we have used an outside payroll service. Yes, those companies help ensure you're up-to-date on payroll and tax requirements, but our industry's pay structure isn't always the easiest to convey to these firms. Sometimes it has felt like getting them the information they needed was about as much work as just handling payroll in-house.But in looking at it again, I've found that the process of getting information to the payroll services — and confirming its accuracy — is more automated than it was in the past. Much of it can be done via the Web. I also understand that thanks to competition, payroll outsourcing now may be even less expensive than it was in the past.
Another shop owner said turning to a payroll service was the only way he felt confident about adding a 401(K) plan that he and his employees wanted. He knew it was important to have outside help from someone or some company that understands payroll issues completely, since the 401(K) plan would require a certain level of expertise.
If a payroll service is something you're considering, check with other shop owners about the service providers they use. Ask about goofs with employee checks, timely delivery of checks or direct deposits, and the level of customer service offered. If you belong to a trade association, check to see if your membership entitles you to a discount from a payroll service provider.
Similarly, we've gone back and forth over the years on whether we handle our customer satisfaction indexing (CSI) in-house or through an outside service. There are pros and cons to both systems, but one good reason for outsourcing is to avoid letting it get dropped from time to time because your staff doesn't have the time to handle it.
The maze of local, state and national environmental regulations also can be tough for even the "greenest" of shop owners to understand and comply with. Even if you're doing things right, compliance requires a fair amount of paperwork and documentation.
Our state environmental agency — like those in many other states — offers free "no-fine" inspections of collision repair shops. These inspections help shop owners make sure they are complying (without the threat of penalties or fines) as long as they agree to promptly correct any problems.
We've also used a consultation service offered by our workers' compensation carrier and our state Occupational Safety and Health Administration (OSHA) office to review our shop's worker safety compliance.
Another outside service that may help your shop is an employee recruitment agency. Again, shops I've talked to indicate they've had mixed results in trying to turnover some of their recruiting duties to outside agencies. Most say it has worked well in some cases and less well in others. A young man we hired through a temp agency to wash cars for us more than 10 years ago eventually became our shop painter, so I know it's something that can work.
In any case, the Internet has generated a wide range of options for posting job openings, but keep in mind that some of the agencies that focus on automotive industry employees can do some of the initial screening that helps streamline and improve your hiring process.
With the tight profit margins we face, the idea of spending more on business services initially may not seem feasible. But often it's a matter of determining what is the best, most profitable use of your time. What are the most important, valuable and profitable things you as the owner or manager can be doing for the business?
A lot of shop owners have found outsourcing to be more cost effective by freeing up some of their time and expertise — and maybe even some desk space previously taken over by piles of paperwork.