Inefficiency in the workplace can prove extremely costly for large and small businesses operating today. From long-drawn-out watercooler conversations to employees wasting time on social media at the office some inefficiencies can cost businesses hours of labor each year. However, most businesses do not even realize where time is being lost within their organizations to create effective solutions to eliminate these inefficiencies for greater productivity and profits.
Dummies.com reports that inefficiencies may be costing business organizations between 20 and 30 percent of their annual revenues. It goes on to report that it isn’t only about the money. Inefficiencies waste valuable time, reduce quality and performance, and damage organizational morale. These things cost businesses more than money today. They diminish the organization’s ability to earn money in the future. Other problems caused by organizational inefficiencies include budget overruns, lack of innovation, reduced employee engagement, blame gaming, missed deadlines, higher absenteeism, and poor employee retention.
Most businesses can identify obvious inefficiencies in the workplace. That would be the watercooler conversations, having too many disruptive meetings, and social media usage. There are some inefficiencies that aren’t as easy to identify, though. For instance, Workfront advises that the average employee spends a substantial
amount of time each day on tasks that aren’t productive at all. How bad is the problem? Up to half of the average workday is wasted on unproductive tasks like playing phone tag, relaying messages, and managing unwanted and/or disruptive communication.
Then there is the technology front. Most businesses invest heavily in technology with the expectations that it will improve efficiency for the organization. While technology can be instrumental in doing so, inefficient processes are more problematic for efficiency, accounting for 44 percent of workplace inefficiency per ITPortal, than paperwork overload (43 percent), and meetings (41 percent). While 96 of business leaders believe technology is the tool that drives efficiencies. This is why it’s important to assess business technology solutions and see if or where it may be slowing them down.
Once all these inefficiencies are addressed, businesses can begin to enjoy the many benefits of efficient operations, including engaged and productive employees, greater employee loyalty, and better profits all around.Updated Date: 30 June 2020, 17:05