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Why Only Shortsighted Companies Use Automation to Replace Employees

Posted by Dawn White on Mar 31, 2021 8:32:25 AM
Dawn White
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In a shaky economy, automation can be incredibly appealing to business executives, but threatening to employees. Automating manual processes not only boosts efficiencies, it cuts down on costly manual errors — and that’s especially beneficial in the realm of payroll. Complex manual calculations are not only time consuming, they’re also risky to your bottom line.

At IDI, we see automation as a win-win for executives and employees alike. Not only does automated payroll immediately recover lost profits, but it creates new business opportunities that your payroll personnel can be an integral part of.

Let’s take a look at the tremendous business benefits of payroll automation for your company and your people.

Automation Cuts Your Losses

It’s not unusual for customers to tell us that IDI’s workforce management solutions have freed up a full two days per pay period. Reports around the industry seem to back up that notion:

“IDI’s salary allocation solution is doing exactly what we need it to do,” said Amanda McCombs, Controller. “It’s super fast and super easy. I no longer have to do that calculation manually. Saves me hours every pay period.”

Manual payroll calculations don’t just mean the possibility of human error — it’s also more expensive than you may realize. A simple ROI calculation can show how much time and money you’re losing every pay period.

For example, if you have 300 employees, it could take your payroll people as much as two days each pay period to track down the information they need and verify it. With automated time systems, you push a button and the data is transferred in about 20 seconds. If you’re paying your payroll person $25 per hour, that’s an immediate savings of $10,400 per year (with a bi-weekly pay schedule). And it’s another 416 hours per year that’s freed up for your payroll person to do more important work.

In addition, there are other factors that affect your ROI, such as:

  • The time your managers are spending on time collection
  • Time theft issues
  • Paycheck errors that overpay your employees

IDI’s automation software eliminates the losses you’re experiencing every time you deal with payroll.

Automation Boosts Human Value

Investing in payroll automation software creates new business opportunities as well. While it’s true that some leaders like the idea of automation because it can reduce the workforce, there’s a more powerful benefit that automation opens you up to.

Nobody does automation like Amazon. The global leader practically wrote the book on it, and they’re continually finding new ways to reduce manual processes. But what’s truly impressive about Amazon’s approach to automation is what they do with their human workforce every time they adopt more AI.

Amazon doesn’t fire people when they implement more automation. Instead, they give their people greater responsibilities. Innovation can’t be automated. It needs creative people who can take an organization to the next level.

For the past decade, Amazon has been automating office work under a program called “Hands off the Wheel.” The purpose wasn’t to eliminate jobs but to automate tasks in order to free up its people for more innovation — to do more with the people on staff, rather than doing the same with fewer people.

When you eliminate redundant, onerous, and error-prone work from your people’s task list, you set them free to be greater contributors to your company. For example, they can:

  • Identify and solve problems that have long been neglected.
  • Invest in their own professional development and learn new skills.
  • Take responsibilities off of other people’s very full plates.
  • Be assigned to new areas or initiatives that need to be staffed.

In today’s economy, businesses that use automation to enhance employee contributions are the ones that will thrive. By making the most of the people you have, you tap into the wealth of human innovation and expertise that already exists in your company, while boosting your bottom line by reducing operating costs.

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