On average, a single HR task, or entry of data, without self-service automation costs $4.39 to complete.
As Human Resource (HR) technology and software has advanced, more and more companies have switched from completing administrative tasks manually to utilizing this new software. Proliant’s Human Capital Management (HCM) services provide payroll administration, performance reviews, HR features, benefits administration, and more. However, there are still a large amount of companies across the country that have yet to swap to a digital HR/self-service platform.
A recent study by Ernst & Young, a leading global professional service organization, gathered findings from 504 individuals who work:
- At companies headquartered in the United States,
- For companies who employ between 250 and 4,999 total employees
- With either the HR department or executive management/senior leadership
- In a supervisory role
These individuals answered questions on their company’s approach to everyday HR tasks. These include:
- Onboarding new employees
- Benefits enrollment
- Management training
- Expense management
- Time management
- Performance management
- Employee separation from the organization
The goal of the study was to, “Estimate the total costs (both labor and non-labor) associated with completing tasks pertaining to these scenarios, and ultimately determining the average cost of a single data entry associated with these tasks.” According to Ernst & Young. Particularly the cost differential between companies who do not use a digital/automated HCM software and those who do.
As stated up top this $4.39 average cost for companies not utilizing a digital HCM solution is applied for every HR task completed. Since this is just the average price across all HR tasks, there are several that come at a higher cost when not using HCM software. Two of the more concerning costs/task are:
- $9.27 for communicating benefit plan information during employee enrollment periods
- $8.23 to complete a Form I-9
For an organization that is onboarding 200 employees/year that is almost $2,000 down the drain. These numbers also do not include any fees associated with errors on these official forms.
Across the gathered information, this study concluded the following three areas have the most potential for cost savings: onboarding, benefits enrollment, and training. Beyond those three tasks, many other areas can save a company significant amounts of money by utilizing a digital HCM solution. The technology not only saves time, but eliminates the need to fill out multiple forms, and will likely inform employees of errors before they submit.
This data should open the eyes of many employers across the country and how vital a good, digital, HCM solution can be to a company. Proliant proudly offers our award winning HCM platform nation-wide, saving employer’s time, effort, and money who were once in situations just like this. If you’d like to learn more, you can view our various solutions by clicking HERE.