[October 24, 2016] |
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U.S. Businesses Waste $687 Billion Annually on Unnecessary Admin Work, New Kronos Study Finds
A new global study from The
Workforce Institute at Kronos
Incorporated and Coleman Parkes Research found that U.S. businesses
waste $687 billion per year on unnecessary administrative work,
significantly more than any other country. That equates to an estimated
cost of $4,554 per employee, per organization on burdensome tasks that
are not directly related to employees' core job roles.1
The study, "The
$687 Billion Question," also found that the U.S. workforce is
hindered by complexity, low productivity, and poor-performing
technology. The research was conducted by The Workforce Institute at
Kronos (News - Alert) and Coleman Parkes Research, and included a survey as well as
extensive interviews with HR professionals, operations/line of business
managers, and employees.
News Facts Treating employees as an asset rather than a
commodity is essential for true workforce engagement. It's a critical
factor in attracting and retaining the best talent possible in a
competitive job market. However, manual administrative tasks unrelated
to employees' core job roles creates a time-consuming burden can lead to
disengagement. Instead, organizations should re-evaluate these processes
to empower employees to deliver their best as part of a broader
engagement strategy.
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Bridging the engagement gap: Technology can be turned into an
advantage, but out-of-date solutions will only add more unnecessary
complexity.
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Manual processes are burdensome, with 78 percent of respondents
citing this as a cause of lost productivity.
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Nearly three-quarters (72 percent) of operations/line of business
managers report that outdated systems/technology are the biggest
workforce management challenge.
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Up-to-date technology would improve employee engagement, according
to 72 percent of all respondents.
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Productivity and employee engagement should go hand-in-hand: Employees
see themselves as contributors, not liabilities on a balance street.
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Shockingly, only 12 percent of all respondents surveyed rate
employee engagement as very strong within their organization.
-
Some organizations may feel as though there is a leadership void,
as nearly three out of five respondents (59 percent) believe that
the CEO is focused on finances rather than employees.
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Only 31 percent of HR professionals surveyed rated their people
among the top three assets of their organization, despite national
discussion about the importance of employee engagement.
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Stuck in the middle: People are torn between meeting customer
needs and manager expectations.
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Sixty-five percent of respondents find it difficult to complete
all of their tasks in a typical work day (which mirrors a 2016
Workforce Institute survey on overtime.) In fact, 48 percent
of operations/line of business managers, 47 percent of HR
professionals, and 38 percent of employees say their working life
is too complicated.
-
Management demands, internal politics, unrealistic workloads, lack
of staff availability, and poor technology support create a
perfect storm of complexity that detracts from providing high
levels of customer service, according to respondents.
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Respondents believe reducing administration and paperwork,
providing the right technology to automate tasks, and improving
structure/support within and among departments would allow them to
more time to think and plan, address high priority tasks, and
focus on customers.
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Small changes create big rewards: Reducing just one hour of
wasted time per employee adds up to billions of dollars.
-
By reducing the burden of admin work by one hour per week, U.S.
organizations would save $1,518 per employee, for a total of $229
billion annually.
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According to the study, respondents average 3.1 hours per week on
administrative tasks unrelated to their core job roles.
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Just 15 percent of all respondents say employee productivity is
very strong within their organization.
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Employee motivations are evolving: Monetary rewards are no
longer the sole motivator for employees, which is why organizations
should focus on communication, collaboration, and culture to keep
employees engaged.
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Communication continues to be a barrier, as nearly three out of
every four respondents (73 percent) said better communication with
management will help them feel more engaged.
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When it comes to reasons to leave their job, compensation is
seventh on the list, with respondents stating they are more likely
to resign due to lack of direction, lack of focus, not seeing
their future role in the cmpany, not feeling valued, not feeling
understood, and not getting along with their manager.
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By reducing the unnecessary administrative burden that managers
are also facing, managers will be able to dedicate more time to
communicating the organization's vision, collaborating more
closely with team members, and fostering a high-performing work
environment.
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Still, 58 percent admitted that rewards and incentives would
likely increase productivity.
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A global economy, a global issue: The U.S. isn't the only
country where organizations are losing tens of billions of dollars per
year due to lost productivity. This global study found that lost
productivity is costing organizations around the world a combined $1.6
trillion (USD):
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China: $522 billion;
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Germany: $144.6 billion;
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France: $79 billion;
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United Kingdom: $78 billion;
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Australia and New Zealand: $35 billion;
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Netherlands: $34 billion;
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Belgium: $16.5 billion; and
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Mexico: $2.2 billion.
Supporting Quotes
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Joyce Maroney, director, The Workforce Institute at Kronos
"It's
clear that a small thing, such as a single hour wasted, can make a
huge difference when multiplied across hundreds or thousands of
employees. At the same time, this research shows that the average day
is also becoming increasingly complicated for employees, with a large
proportion of time being spent managing complexity instead of adding
value. This is not how employees want to spend their days. As a
society, we've reached an important junction where workforce
demographics, working patterns, and employee expectations are
changing. Treating people as an asset rather than a commodity is
essential to achieving true workforce engagement, which will only
further support efforts to attract and retain top talent.
Organizations can increase the likelihood of meeting today's
challenges through strategic deployment of technology, a clear HR
strategy, an appreciation of cultural change, and a focus on employee
engagement."
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Ian Parkes, director, Coleman Parkes Research
"Engagement
happens from the top down and from the bottom up. Employees need to
feel valued to go the extra mile and provide discretionary input, and
managers must lead by example to create a culture of communication and
collaboration. However, this just isn't possible in many organizations
as both employees and managers are faced with increasingly complicated
workdays. Technology is essential, but if it is outdated, poorly
implemented, or lacks a purpose, it will only add to the complexity.
Instead, organizations should focus on technology investments that
help everyone focus on, and streamline their core job duties and add
value to the company. The burden of unnecessary admin work is costing
U.S. organizations a staggering $687 billion per year. Mitigating this
brain drain for both employees and managers will help organizations
achieve significant savings while at the same time fostering higher
levels of employee engagement that further aid efforts to attract and
retain the best workforce possible."
Supporting Resources
About The Workforce Institute at Kronos The Workforce
Institute provides research and education on critical workplace issues
facing organizations around the globe. By bringing together thought
leaders, The Workforce Institute is uniquely positioned to empower
organizations with the knowledge and information they need to manage
their workforce effectively and provide a voice for employees on
important workplace issues. A hallmark of The Workforce Institute's
research is balancing the needs and desires of diverse employee
populations with the needs of organizations. For additional information,
visit www.workforceinstitute.org.
About Kronos Incorporated Kronos is a leading provider of
workforce management and human capital management cloud solutions.
Kronos industry-centric workforce applications are purpose-built for
businesses, healthcare providers, educational institutions, and
government agencies of all sizes. Tens of thousands of organizations -
including half of the Fortune 1000® - and more than 40
million people in over 100 countries use Kronos every day. Visit www.kronos.com.
Kronos: Workforce Innovation That Works™.
About Coleman Parkes Research Coleman Parkes Research works
interactively with clients to formulate proven strategies to generate
market insight based on individual requirements and key hypotheses. From
undertaking thought-leadership research for marketing campaigns and
analyzing win-loss opportunities to testing product messages and
conducting senior executive interview, our in-house team of experts
ensures that all clients' research projects are designed and structured
to not only gather the right data, but also to generate valuable
insights that question the "so what" and drive effective business growth.
Study Methodology The Workforce Institute at Kronos
commissioned Coleman Parkes Research to investigate the current level of
employee engagement in a cross-section of U.S. companies and the impact
engagement can have on business success. In 2016, Coleman Parkes
conducted 314 online surveys and detailed interviews with HR
professionals (105), Operations/Line of Business managers (105) and
employees (104) at companies with more than 600 employees in the Retail
(21 percent), Healthcare (20 percent), Public Sector (20 percent),
Manufacturing (19 percent), Service (16 percent), and Transportation and
Logistics (4 percent) verticals. The sample sizes and eventual data set
provide a snapshot of views that we believe is representative of midsize
to large U.S. organizations as a whole. A similar approach was used for
each country included in the study.
Footnote 1: Dollar amount calculations based on 2016 U.S. Bureau of
Labor Statistics reports on hourly
wages and employed
persons. The complete methodology is contained in the full report, available
here.
© 2016 Kronos Incorporated. All rights reserved. Kronos and the Kronos
logo are registered trademarks and Workforce Innovation That Works is a
trademark of Kronos Incorporated or a related company. See a complete
list of Kronos
trademarks. All other trademarks, if any, are property of their
respective owners.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161024005738/en/
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