HR Strategy

How Manual Processes Harm Business and Halt Opportunities

By

Addison Plank

| May 14, 2019

Manual processes negatively affect your business – and it’s not just a blow to your bottom line. Employee engagement, compliance and recruiting efforts also take a hit.

Reminder: Millennials not only want up-to-date technology, they expect it. And constantly making employees jump through hoops, organizational hierarchy and the occasional email chain to make a simple address or bank account change doesn’t bode well for a generation used to instant gratification.

But how much does this actually cost organizations? Thanks to groundbreaking research by Ernst & Young (EY), manual processes finally have a price tag. A big one.

Did you say thousands?

EY’s study calculated labor and non-labor costs associated with common HR tasks, considering the salaries of the employees entering data and the average error rate, which is 10%. That means one out of every 10 manual HR tasks must be corrected … sounds efficient, right?

And when you have more than 10 employees, mistakes – and money – add up. For one example, to record, complete and correct Form I-9 information costs $7.85 per form. Multiply that by 1,000 employees and you’re looking at an expense of $7,850 for a task that could easily be automated through HR technology. And that’s just one out of 41 tasks EY measured!

Give the people what they want

Just as your employees have control over when they want to book a flight or order food from their smartphone, they also want to control their own HR information and make changes as needed. With Paycom, those changes are instant and populate throughout the entire system.

Now employers can see just how much they benefit from employees using Paycom’s self-service tool to make those changes. With Paycom’s Direct Data Exchange tool, organizations get a real-time score of that usage, as well as dollars saved (based on EY’s data). Direct Data Exchange also identifies areas of potential savings so you know where to eliminate manual processes and maximize ROI for a healthier bottom line.

Download this white paper to discover just how much your organization is losing to manual processes. And while you’re at it, try this calculator for a full cost breakdown for your company to help make the case for single-application HR technology.

About the Author

Addison Plank

As a marketing writer at Paycom, Addie Plank produces copy for a variety of internal and external materials related to human capital management. At Oklahoma State University, she earned a bachelor’s degree in sports media with an emphasis in strategic communications, and a master’s degree in mass communication. Outside of the office, she enjoys spending time with her dog, playing indoor soccer and exploring Oklahoma City’s food scene.

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