Auto Dealer Compliance: The 5 Factors that Make it so Complicated

Auto Dealer Compliance: The 5 Factors that Make it so Complicated

Does just the thought of managing workforce compliance make your head hurt? If so, you’re not alone. Every single auto dealer faces the challenge of managing employee compliance, and although it’s definitely complex, it’s not to be ignored.

 Your workforce is likely made up of employees, contractors and third-party partners. Together, they weave an intricate web of risk exposure that requires constant attention in order to protect your business.

If you’re looking to responsibly manage all of your auto dealer compliance activities, then you’ll need to take a good long look at the level of complexity and potential exposure you’re facing. While there are many factors to consider, we recommend considering these 5 areas.

Is Your Dealership Facing These 5 Compliance Challenges?

Multiple Locations

It’s common for auto dealers to manage several locations across different states. While this means a broader customer base, it also means increasingly complex compliance obligations. Any time you have locations across the U.S., jurisdictional issues come into play. Different states have their own employment laws—each with their own reporting requirements. Are your auto dealer compliance programs up to the task of managing a multi-site workforce?

Keeping Pace

Does your dealership have to continually adapt to meet regulatory and market demands? Dealerships are forced to be dynamic for a host of reasons, from introducing new product lines or launching new services, to adapting to new regulations. Each of these changes means new internal policy and procedures to keep pace.

Fluctuating Employment

Do you experience high turnover? (Side note, try this nifty calculator to see how much turnover is costing you. It’s scary!) Does your business operate seasonally? Are you growing rapidly? Perhaps job responsibilities are changing, even if roles aren’t. If improperly trained or uncertified members of your workforce are performing tasks outside their scope of responsibility, you’re exposing your dealership to a variety of risks. Ensuring the right training and information gets to the right person, at the right time, is essential.

Outside Relationships

Do you hire contractors or often have third parties onsite? Do these individuals have access to proprietary information or corporate systems? These outside relationships can impact your dealership. Third parties are notorious for innocently introducing fraud, theft, or corruption into a system. Plus, they are often subject to the same codes of conduct and operational policies as traditional employees. These extended members of your auto dealer workforce need your attention, too.

Technology Challenges

How is your dealership responding to changes in processes resulting from new technology? For instance, automating your business systems or introducing more stringent security procedures can cause disruption. Technology trends such as Bring Your Own Device (BYOD) or using social media in the workplace introduce their own sets of challenges.  Are your compliance programs keeping pace?

If you’re facing any—or all—of these challenges, the success of your dealership depends on having a well-structured workforce compliance program. But there’s no reason to make things harder on yourself, your human resources department, or your budget.

 Though your auto dealer compliance obligations may be complicated, your workforce compliance system doesn’t have to be. Dealerships that use an automated workforce compliance system set themselves up for success in facing their current, and future compliance challenges.

Auto Dealership Compliance Regulations eBook

Are you up to date on the most critical laws, rules and regulations that affect your dealership? Find out now. Get the checklist.

Toby Graham

Toby manages the marketing communications team here at Compli. She's on a quest to help people tell clear, fun stories that their audience can relate to. She's a HUGE sugar junkie...and usually starts wandering the halls looking for cookies around 3pm daily.

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