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AU$56 billion – that’s how much ANZ businesses are losing to unnecessary admin


Workforce management software provider, Kronos recently launched its latest research paper, The $56billion Question which revealed the impact unnecessary administrative tasks has on Australian and New Zealand businesses.

The research concluded that employees across ANZ are overburdened with non-essential tasks, unrealistic workloads, and large quantities of reporting or paperwork and poor technology available or poor technological support.

This impacts productivity creating losses of AU$3,900 per year, per employee, per organisation with one in five respondents stating it is difficult to complete all their tasks on any given day.

“This report is a wake-up call for organisations to make the changes necessary to unburden their workforce from out-dated systems and unnecessary complexity,” said Peter Harte, managing director, Kronos Australia, New Zealand and South East Asia.

“It’s time to start conversations on what changes are required to drive improve productivity in order to deliver profitability and growth.”

What’s the situation in Australia?

AU$55.8 billion opportunity is lost annually by ANZ companies with 82 per cent of Australian respondents not finding it very easy to complete their daily tasks due to workplace complexity.

Only 46 per cent of managers across Australia consider employees one of their organisations’ top three assets whereas 61 per cent of Australian respondents say better, up-to-date workforce management technology would improve employee engagement.

On average, an employee in Australia and New Zealand wastes three hours each week, with most of this time taken up by unnecessary administrative tasks – equating to 6 per cent of an average working week or AU$3,900 a year based on an average income.

So what must be done?

Organisations need to boost employee engagement by treating their people as valued assets not as an expense.

By increasing collaboration and reducing the administration burden through automation technology organisations are able to empower employees to increase productivity and profitability.

Respondents claim the answer to simplifying the working day lies in reducing administration and paperwork and providing the technology to automate appropriate tasks.

Small changes can reap big rewards. Clawing back just one hour of time wasted on non-essential tasks each week could save organisations billions of dollars.

Reducing wasted time by one hour, per week, per employee would save AU$1,548 per employee, per year – or AU$22bn per annum.

Your employee shouldn’t be a liability

Engagement is critical to business continuity and success, because engaged employees are much more likely to “go the extra mile”. However, this engagement is not currently a priority for ANZ business leaders.

55 per cent of respondents think the CEO is only focused on the numbers, rather than the people who deliver the work whereas more than half (52 per cent) of HR managers do not consider employees one of their organisation’s top three assets.

Just 28 per cent of respondents rate employee engagement as ‘strong’ in their organisation.

“Strong employee engagement is fundamental to a business’ bottom line, with engaged employees much more likely to go the extra mile,” said Joyce Maroney, director, The Workforce Institute at Kronos.

“However, this report demonstrates that engagement is not currently a core focus for HR teams or business leaders.”