Solving Auto Dealership HR & Payroll Pain Points: The Best Practices Guide 2025-2026 

The automotive industry is changing — fast. But we’re not telling you anything new.   

Technician shortages, complex payroll demands, and increasing compliance pressure are creating real risks for dealerships and service centers that can’t keep up.   

At the same time, outdated HR systems are making it harder, not easier, to attract and retain top talent. Clunky technology, manual processes, and poor support leave automotive businesses vulnerable to:

• Increased service times and longer repair backlogs

• Lost revenue from staffing shortages and overtime

• Customer dissatisfaction and loss of repeat business

You’re not alone. And there’s a better way to transition away from those stacks of paperwork, physical schedules, and rows of filing cabinets.

To stay competitive and profitable, automotive businesses need streamlined, mobile-ready, and people-centered solutions that tackle the industry’s toughest challenges head-on. From faster hiring and seamless payroll to real-time labor insights and U.S.-based support, the right HR technology is a competitive advantage.

This guide will show you the best practices for getting there. And Netchex can take the load off your teams, so they can focus on people, not processes.

Why Automotive HR Needs to Evolve

The numbers don’t lie. Today’s auto industry runs at full throttle, and it’s putting a serious strain on HR and operations.

• Dealership employees, especially in sales and service, often work 50+ hours per week.

• In 2023, over 1 million people were employed in the new car dealer industry, making HR operations at scale more important than ever.

• Turnover is a major challenge, with dealership-wide annual turnover at 46%, service advisor turnover at 49%, and sales consultant turnover hitting a staggering 80%.

High turnover, long hours, and massive industry scale make it clear: Without the right systems in place, automotive businesses risk burning out their teams and their bottom line.

That’s why HR and payroll solutions built specifically for auto dealerships and service centers aren’t just helpful. They’re mission-critical.

Core Challenges Auto Dealerships Face Today

Challenge	What It Means for You
Employee Turnover	Losing top talent leads to longer service times, lost revenue, and constant rehiring. Without standout onboarding and retention tools, it’s hard to keep staff.
Constantly Changing Compliance	Federal, state, and local laws evolve frequently. Without automation, compliance becomes risky and time-consuming.
End-of-Month Payroll Bottlenecks	Manually importing tech time, posting GLs, and reconciling commissions wastes hours your team doesn’t have.
Hiring Skilled Talent	The race to hire qualified techs and sales pros is competitive—and outdated hiring processes can leave you behind.
Tax Filing Hassles	Preparing W-2s, 1095-Cs, and quarterly tax reports manually creates room for costly errors and unnecessary stress.

Reducing Employee Turnover

High turnover is one of the most expensive and disruptive problems in the auto industry. From missed revenue to longer service times, every lost team member costs time and trust. Here are the best practices that address this challenge head-on.

Offer Earned Wage Access

Giving employees access to wages before payday provides much-needed flexibility and financial relief. Many dealerships don’t offer this, making it a unique benefit that supports retention.

Products: Payroll, Earned Wage Access

Deliver a Great First Impression with Onboarding

A rocky start can lead to early exits. An intuitive, mobile-friendly onboarding experience keeps new hires engaged from Day 1 and sets the tone for a long-term relationship.

Products: NetGuide, Fillable Forms, Employee Self-Service

Make Information Accessible

Employees need access to paystubs, W2s, benefits, and profile updates anytime. A mobile-ready portal helps with everything from applying for loans to addressing changes, saving admins time, too.

Products: Employee Self-Service, NetBenefits

Keeping Up with Compliance

Federal, state, and local laws change constantly, and keeping up with them is non-negotiable. Automating parts of this process helps minimize errors and stress.

Automate State-Mandated Sick Leave

Track balances like “1 hour for every 30 hours worked” directly within the employee profile. Provide visibility for both employees and admins.

Product: Payroll, Time and Attendance

Auto-Apply Tax Rate Updates

Netchex updates state and federal tax rates automatically at the start of the year—no manual adjustments needed.

Product: Payroll

Use Year-Round Reporting to Stay Audit-Ready

Access real-time reports to stay on top of your compliance obligations and prepare for audits long before deadlines hit.

Product: Payroll, NetInsights

Streamlining End-of-Month Payroll

If your team spends days closing out payroll each month, there’s a better way.

Save Hours with Dealertrack Integration

Import commissions and tech hours with a few clicks. Post payroll GL data straight into Dealertrack within seconds—no more line-by-line entry.

Products: Payroll + Dealertrack Integration

Finding and Hiring Top Talent

Finding skilled automotive technicians and motivated sales staff isn’t easy. But smart hiring tools give you the upper hand.

Use an ATS that Speeds Up Hiring

Manage applications, interview scheduling, and offer letters in one place. Integrate with payroll to instantly kick off onboarding.

Products: Hireology + Netchex Integration

Simplifying Tax Filing

Tax time doesn’t have to be panic time.

Let Netchex Handle the Heavy Lifting

Our tax team handles all filings and payments for federal, state, and local taxes. You’ll receive PDFs of all quarterly reports. W-2s and ACA forms? We’ve got those, too.

Products: Payroll, Tax Services, ACA Central

Best Practices for Timekeeping

• Require employees to approve timecards before payroll processing

• Require managers to approve timecards and PTO requests
• Enable mobile punch-in with geofencing or IP restrictions

• Enable mobile punch-in with geofencing or IP restrictions

• Set up text/email alerts for missed punches

• Automate PTO tracking to show YTD balances

Products: Time & Attendance, Scheduling

Best Practices for Payroll

• Use “Other Scheduled Earnings” to pull draws into correct pay runs

• Automate commissions and bonuses with Dealertrack imports

• Consolidate multi-role pay structures (hourly, salaried, commission) into one workflow

Products: Payroll, Dealertrack Integration

Quick Wins for Your Automotive HR Team

With Netchex, your automotive HR team can immediately lighten the load, speed up critical tasks, and focus more time on what really drives performance, your people, and your purpose with an extensive Dealertrack integration.

Save Up to 16 Hours/Week by automating payroll and HR tasks all in one connected platform.

Speed Up Hiring and Onboarding with smarter posting tools, built-in onboarding, and faster same-day readiness for new hires, all digitally.

Simplify Time and Attendance Management with mobile clock-ins, shift swaps, geofencing, and real-time visibility into who’s working, who’s late, and who’s needed.

Handle Complex Pay with Ease across hourly, salaried, commission, and seasonal employees, streamlining multi-location payroll.

Boost Employee Engagement with real-time recognition, pulse surveys, and easy access to schedules, pay stubs, and benefits from their mobile device.

Cut Overhead Costs by consolidating HR, payroll, benefits, scheduling, and compliance workflows, saving admin time and reducing expensive licensing fees from multiple vendors.

Strengthen Retention and Growth by offering employees Earned Wage Access (EWA) and clear benefits enrollment. You can support a winning company culture where they want to work.

Make Smarter Decisions, Faster with real-time Insights dashboards that show hiring ROI, overtime trends, turnover patterns, and engagement levels, all without an IT degree.

Netchex Just ‘Gets’ the Automotive Industry

Ready to shift your HR into high gear? Let Netchex help you build the infrastructure that keeps your team moving forward. Our dedicated automotive industry team understands your business and how you live by balance sheets, floor plans, and complex weekly schedules. See why so many dealerships and automotive clients say they wished they’d made the Netchex switch sooner!