Interaction Automation with RPA
RAPID ROI FINANCIAL BUSINESS CASE FOR:
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Employee on-boarding is a critical start to employee experience and engagement. It is often the first real impression that an employee has of their new employer, and a bad experience can be detrimental to the longevity and productivity of that employee. Once can expect the % of productivity in these first few days of a new job will be limited, however ineffective on-boarding can exacerbate this cost.
The real cost of ineffective on-boarding is not only a loss of productivity by the employee, but includes the time and effort of their manager, IT, HR, Payroll, Recruitment an others to complete forms, trigger action and simply waiting for things to happen.
If a new employee costs for eg. $500 per day, then the financial impacts of ineffective on-boarding can on average be 3-5 times this amount. Multiply this by the number of new hires in a year, and you have a significant opportunity to improve productivity and allow involved employees to utilise their time more productively.
Acknowledge that Robotic Process Automation (RPA) can help companies achieve large savings with relatively little investment. These automated processes are significantly cheaper to implement compared to technical integration in many cases, and have the ability to provide positive returns quickly.
Managers can spend a significant number of hours onboarding employees, typically in two areas: Orientation and sorting out on-boarding process errors/constraints and tasks. We found automation and RPA can reduce this time involvement by an average of 60%.
There are on average 40-60 tasks that take place to on-board an employee. On average each task takes about 20 minutes to complete. This translates to about 13-20 hours of effort for HR/Recruitment/IT/Payroll and other involved parties.
Productivity during the onboarding period is typically very low because new hires are often waiting for tasks to be executed, completed or corrected. Optimised on-boarding can improve productivity during these onboarding days by 10-20% on average
It has been well documented that ineffective on-boarding has dramatic impacts on staff productivity and retention. Nearly 33% of new hires look for a new job within the first 6 months on the job, while 23% of new hires leave before their first anniversary. Total loss for an organisation can be between 100-300% of the replaced employees salary. It also typically takes 3-8 months for a new hire to achieve full productivity. Proper on-boarding can increase productivity by 10% over 3-6 months (Ref HBR 2015 https://goo.gl/D2GhSq )
Research shows that turnover costs between 21-50% of the departing employees annual salary. With effective onboarding, you can improve your retention by 58% (Ref: Sapling https://goo.gl/GfwCnB )
There is strong correlation between Employee engagement, customer ratings, profitability and productivity. Those companies scoring well in this metric outperform others by 10% on customer rating, 22% on profitability and 21% on productivity. (Ref: Gallup http://goo.gl/utmKrU )
Consistency in policies across an organisation, employee constraints, union rules, and legislative compliance increase the liability risk for organisations. Although not predictable, government fines and legal liability are an ongoing and growing risk for many organisations. It cost on average an Australian employer $7000-$10,000 in compliance costs, which could be reduced through effective on-boarding (REF: http://goo.gl/DHy4h6 )
The software costs for the project includes the initial RPA tool license fees and the ongoing annual costs for a subscription license and maintenance fees. Other costs may include operating system, support software, or other desktop upgrades and network software changes.
Hardware costs include servers purchased to support the application and any additional networking or security hardware required as part of the deployment. Additional hardware may be needed to support networking, integration, and wireless and mobile devices.
The personnel costs for a project include the initial time devoted to the management and deployment of the solution. On an ongoing basis, the time devoted to managing the solution should be included in the project costs.
Consulting and professional services are typically used for initial deployment, custom development, integration, and training.