CCC News & Insights

Run My Business: Pay Transparency and Your Payroll Provider

By Heidi Harris, Director, Solutions Engineer

Collision repair is a demanding business. You're wrangling parts, calming stressed customers, and coaching teams to safely make miracles happen with mangled metal. Making the time to focus on payroll and your payroll provider likely seems like a lower priority on a long list. But I challenge you to think about even the most talented techs and estimators. When they perform at their peak are they still left in the dark or questioning their pay?

We've all heard the stories, right? Like the seasoned painter who walked out after 20 years because his paystub looked like a random TPS report. Or the shop owner who swears their pay plan is solid gold but can't show their techs how that translates to their wallets. And let's not forget the hero we don't talk about enough: the payroll warriors and office managers who spend their weeks in a cold sweat, praying the numbers add up and are turned in on time to avoid a mutiny (or worse, a labor board claim!)

It doesn't have to be this way! Building a better collision repair experience should include pay transparency. In my decades of experience when teammates understand how their work translates to their paycheck, it's a win-win-win for the teammate–customer–business.

Why Transparency Matters
  • Motivated teammates: Mystery boxes are fun for toys, not paychecks. When technicians can see a clear connection between their effort and their earnings, they're more likely to go the extra mile. Imagine a world where your team isn't constantly asking "Did you enter that supplement yet?” – a beautiful utopia, right?
  • Peace of mind payroll: Liberate your payroll heroes! With transparent pay structures and systems, you can empower your team to see their individual calculations. Reduce the need for the back and forth, printed paper, and chasing corrections. Happy payroll person, happy life!
  • Profitability powerhouse: Knowledge is power, and when your team understands their personal financials, they become invested in the shop's success. Suddenly, everyone's looking for ways to tighten up and squeeze more efficiency (dollars in their pockets) out of the day. Boom! Profitability on the rise.
What to Look for in a Payroll Provider

To get the outcomes above, you need partners that will help make it happen. Make sure your payroll provider is working for you. Here are some key things to look for:

  • Real-time pay tracking and reporting: Your system should enable clear communication around pay for you and your team. Make sure your system allows for easy calculation and management of commissions based on sales or repairs completed. It should also allow for tracking labor costs, overtime, and other payroll metrics to empower you to make informed business decisions.
  • Support multiple pay types and rates: It should allow for easily managing different pay rates for technicians with varying experience levels and certifications, a mix of salary, hourly wages, and commission structures.
  • Industry expertise: Does the provider cater specifically to the needs of the collision repair industry? Is their support staff knowledgeable about flag labor allocation and how that ties to the repair itself, or overtime pay calculations specific to flat rate and commission pay structures?
  • Web, app, or all device-friendly: Accessibility is key! Your payroll system shouldn't be chained to your desk. Access your payroll system and employee data from anywhere, anytime. This allows for on-the-go approvals, remote employee self-service, and simplified record keeping. Easy access on any device helps to keep your team engaged.
  • Integration with your shop management software: Save time and eliminate double data entry by seamlessly syncing employee hours, deductions, and tax calculations with your existing system.

With a good payroll provider, the platform becomes your partner, helping you create a more efficient and positive work environment for your teammates and customers.

Tune in next month when we delve into the world of websites for collision repair shops. We'll explore how to leverage your online presence to attract new customers, build trust, and keep your business thriving.

Want to talk about your payroll processes and how to make them better? Just fill out this form and let’s talk.