How Much Will You Save?

Cash going through a shredder

As I wrote in a recent newsletter article, often times when evaluating a new workforce management solution companies will only focus on the price of the system, while ignoring the opportunity cost of sticking with an older, less efficient system. Those companies that decide to “save” some money by foregoing the upgrade often end up losing money in the long run.

They might as well take those “savings” and put them through the shredder for all the good it does them.

One problem, of course, is that those opportunity costs are sometimes tricky to quantify.

A Rule of Thumb?

This may help: in a 2010 study conducted by the Axsium Group, it was determined companies that implement enterprise workforce management can save on average approximately $1,600 per employee per year after the implementation.

(Workforce management was defined to include Time and Attendance, Scheduling, Leave Management and/or Attendance Management.)

Yowza, that’s a lot of money! No wonder many of our customers report they’ve saved enough within just a few months to cover the cost of their new system. When you think about it, though, automating many of the processes leads to much greater efficiency and practically eliminates clerical errors, so it’s not necessarily as surprising as it might seem on first glance.

Not All Good News, Though

The study also revealed that companies are not communicating the benefits of the change well enough, not managing the change as well as they could, and not taking enough time to train the users of the system. As a result, it takes longer than it should for employees and payroll departments to complete tasks (at least initially). In some cases they drag their feet and actually refuse to fully implement the system, clinging instead to older, manual procedures. This means companies aren’t necessarily seeing the full benefit of their shiny new workforce management solution.

For organizations that invest the effort and time to communicate, manage change and train the system users, though, the savings could be even more substantial.

What are your ideas to help companies make the implementation of automated workforce management go more smoothly? I’d love to hear your suggestions!

By the way, if you’re interested in getting an idea of how much your organization might save by upgrading your time tracking solution, check out our handy Online Savings Calculator.

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