What impact does admin work have on SME productivity?

posted by 3 years ago in News
What impact does admin work have on SME productivity?

When it comes to admin work, many will push it to the back of the pile and say ‘I will get to this later’ but we all know the pile starts with a sheet of paper which later turns into a mountain of paperwork.

Managing a business comes with many tasks, all of which are important but what is more important is knowing how to prioritise and knowing the value each task brings regardless of how tedious it may be. When things are done, they are often done in a certain way, which almost becomes a routine but, how much time and money are we wasting?

A recent survey conducted by WorkMobile found that at least two-thirds of businesses are wasting £2,000 on each employee each year due to over-reliance on paper.

Approximately 67% of employees have revealed that the companies they currently work for are paper-based, which includes posted mail and paper forms. 60% of employees also admitted to printing documents out at least 3 times per week while 30% are printing paperwork daily.

On top of the costs of printing and managing paperwork the cost of the labour can also add up. According to research conducted by Sage, business builders are spending on average 120 days a year on admin tasks, this accounts for 5% of total labour.

When looking into the costs it is not something that should be ignored, in fact research highlighted that the increase of just 5.6% in productivity could also lead to an increase in GDP of £33.9bn each year.

Co-founder and CEO of Yapster, Rob Liddiard comments;

“Cloud technology removes heavy administrative burdens – people working in the business are left with more time to spend on the things you actually pay them to do, unless they’re administrators of course!”

Co-founder and CEO of Fleximize, Peter Tuvey also shares his thoughts;

“We use both spreadsheets and accountancy software, but mainly software. With a software package, there is additional support that you don’t get when just using a spreadsheet.

“We always ensure that plenty of time is set aside for the processing of payroll. Cur-off dates are issued to the relevant managers so that information is received in good time and the payroll department has time to check and recalculate as necessary. We’ve also made more use of HR systems, allowing us to centralise all details for payroll and make custom reports which reduce input errors and streamline the process.”