Weighing all of those costs against the monthly or annual cost of an automation tool may help you see whether or not the tool is worthwhile.
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Longer tasks and processes – reporting, approval processes, sending notifications, and so on – might add up to thousands of dollars saved over the course of the year.
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That’s an immediate cost savings of $100+ dollars for one task. Let’s assume that automation reduces that one hour per month down to 5 minutes, or one hour per year. Your yearly costs would be $144 for this task ($12 x 12 hours per year). Labor costs – automation cost savings = total cost savingsįor example, let’s say you currently employ someone (at $12 per hour) to upload resumes into your HR system, which takes roughly an hour per month. Otherwise, you may have to ask the vendor for estimated times for specific tasks.ĭetermining how much potential savings (this will be an estimate, as it’s difficult to get an exact number), you can subtract that from your current labor costs. If you already have access to a workflow automation tool, or a demo, you can run the task and calculate the project time. The tricky part comes to determining how much time your automation tools will save on any given task or project. You can then multiply your hourly rate by the number of hours a process would take to complete. Sites like Glassdoor can help give you an idea of the average costs of labor per industry. Or, if you haven’t yet hired someone to fill a roll and you’re curious how much automation would save, you can look at industry labor costs. You can calculate these costs based on what you’re already paying your employees. hovered somewhere around $38 in 2015 and is predicted to rise to 42.6 in 2019. So just how much does workflow automation save in terms of labor costs? It depends on a few factors.įirst, you have to understand what the average worker is paid for his or her position.įor example, the average manufacturing labor cost in the U.S. The idea is that with automation, employees spend their time more effectively, which saves on labor costs. This means that employees should be able to focus on tasks, projects and ideation that machines or automated processes can’t handle. In other cases, the work of the employee is reduced to only the bare essentials. In some cases, employee involvement may be entirely eliminated from certain processes. Automation is designed to replace or assist human hands when it comes to task completion.