Manufacturing companies have their own unique challenges when you're positioning an HCM system—whether it’s time-and-attendance, payroll, or HR. If you address the challenges early in the sales process, you can turn them into great opportunities to demonstrate your credibility and industry knowledge. You can also use them to head off issues when you’re implementing your solution, and avoid client frustrations about what they were actually sold.
Here are three important questions you should be asking all of your manufacturing accounts to make sure you give your customers the solutions they need and expect.
The Top 3 Questions to Ask Every Manufacturing Account
1) Do you pay employees different rates based on work performed?
Most time and payroll systems are very good at determining rates based on one or two variables, such as job or department worked. But manufacturing firms often need to factor in many variables for assigning a given rate of pay— such as job, location, shift, and pay code charged.
If your manufacturing account derives employee rates based on several variables, request a copy of their pay policy document, union agreement or spreadsheet they are using today to confirm your time and/or payroll system can accommodate their needs.
2) Do you have any incentive pay policies to reward and retain your top performers?
Many manufacturing companies have unique incentive policies that reward their most productive and experienced employees. Examples include piece work, step pay, progression pay, or other methods.
Often, companies use Excel spreadsheets or manual methods for calculating these incentives, because HCM systems haven’t been able to address their specific policies. These error-prone and time-consuming methods expose the company to compliance risk and employee/union pay disputes.
To help confirm your HCM system can automate their incentive policy, always obtain a copy of their incentive policy and any other examples on how they pay their employee incentives.
3) How are you managing compliance with FLSA, based on your unique time and production pay policies?
Calculating the correct FLSA overtime rate requires factoring in different rates of pay and other earnings. This includes any production pay, shift pay, and incentives. While most HCM systems reliably determine overtime hours, manufacturers are often the most complex accounts to automate the correct overall earnings for the weekly average overtime rate required for FLSA compliance.
Be sure to do a deep dive into how overtime is (or should be) paid for your manufacturing client, and confirm that your time and payroll modules will address this critical compliance need.
Offer the Complete HCM Solution Your Manufacturing Account Is Looking For
Asking these questions gives you what you need to determine if your core HCM system can meet the manufacturing company’s requirements, or if you should engage IDI to complement your system. We’ve worked with hundreds of manufacturing clients to automate complex rates, incentives, and FLSA overtime rate.
Contact us to find out how we can extend your offerings and automate the critical business rules and pay policies that your clients expect.