15 Nov Business Inefficiency and Wasted Degrees
Business Inefficiency and Wasted DegreesDate: Nov 15, 2018 Reading Time: 5-6 minutes Target Audience: Business Decision Makers
People Are an Organisation’s Greatest Resource
When you examine the use of resources in organisations, one area often overlooked is how they are deploying their people. Most organisations are so focused on cost-cutting measures that they fail to see the true costs associated with the tasks that they assign their people.
Misuse of human capital can occur in an organisation of any size and any profit level. Start-ups, however, tend to be notorious for wasting the time and talents of their brightest people because they often begin operations on a shoestring budget.
Inefficiency is Costly – Especially When the Resource is Human Capital
In the mistaken belief they are saving money, organisations may forget to place associates to work in areas where they could take full advantage of their education. It’s not uncommon to find employees with a bachelor’s or another advanced degree, wasting their time and abilities on some mundane task that could easily and effectively be handled by a software application.
Of course, over time, these organisations grow. But then either out of fear or misinformation, they fail to automate and simplify their business processes. Most will point to the upfront costs associated with purchasing a specific automation software package as the reason their organisation continues to waste the talents of its best people. By not applying the correct talents to the right areas, in turn has enormous direct and indirect costs which far outweigh the cost of any software system.
The True Cost of Wasted Degrees
Before you dismiss the idea of automating your business processes because the software initially seems too costly, you should first examine the true cost of maintaining the status quo by continuing to waste your human resources over time.
When you are wasting your best talents on mundane tasks better handled by software, you are losing the opportunity to have them work on more complex assignments that cannot be handled by a software system. It will also cost you more money, in the long run, because you will need to hire more people with degrees, and at a higher salary, to perform these additional tasks that can’t be automated.
Wasting your best talents on these tasks also leads to a higher turnover rate which, in turn, leads to higher costs to recruit, hire and train new personnel. Most of us have a true desire to find and perform meaningful and fulfilling work. Eventually, your most educated associates will leave to work for another employer who offers more opportunities for growth and development. You can count yourself exceptionally lucky if these associates are not lured away from you by your direct competition.
Finally, there is another opportunity cost associated with wasting the education of your staff by tying up their time with mundane tasks. Where are those novel ideas, the neat new product innovations and electrifying designs going to come from if your people don’t have the time or specialist knowledge to create them?
Update your systems, not your degrees.
Breakthrough changes and technological advances are more likely to come about when you are putting your most talented people to their best and most effective use. Similar to rowing a boat upstream; maintaining status quo without growth, advancement or evolution, an organisation eventually falls backwards and dies. The eventual failure of your organisation over time is truly a high cost to pay to “save” a little money upfront.
Rather than focusing solely on the upfront cost of a software system you should look at the actual value that it will inject into your organisation over time. Purchasing a software system to automate your business processes is an investment that helps you to use your best talents more effectively, and gives your organisation, and its people, the freedom to grow, develop and flourish!
Is it time to check up on your business processes?
Before you bring more talent and wasted degrees into your organisation, take a look at your business processes. By optimising them, you free your talented people to do the work they have been trained for. That’s how you get the greatest return on your investment. Call the team at B2b to help you create a work environment that saves on costs and produces the best quality work from your teams.
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