What CPAs Need to Know About Improving Organizational Efficiency
Efficiency. It’s a word that gets tossed around often, typically with little more than a vague notion into its intended meaning. Even when married to the word “organizational”, we’re left with little to understand regarding the success or failure to implement “efficient” methods and tools.
Since we’re specifically discussing the broad topic of “organizational efficiency”, it’s good habit to dig deeper and really get to understand a phrase that’s in constant industry circulation.
We can determine that organizational efficiency has everything to do with, well, everything related to your client’s business. From processes to employee productivity, we can measure these values to determine performance and productivity while addressing how many inputs are necessary to generate the greatest possible outputs.
That’s a lot to consider – but you already know.
While measuring organizational efficiency can take some work, it can yield big rewards, too. Take the Workplace Research Foundation’s recent study regarding engagement (courtesy of Talent Culture), “Increasing employee engagement investments by 10% can increase profits by $2,400 per employee, per year.” And that’s a nice boost.
But there’s more to consider – lots more. Continue below and relay this information to your clients. They need to understand that efficiency is crucial to their success – it’s simply not enough to have systems in place. They need to be the right ones, capable of performing precisely what your client needs before they even know they need it.
Your Client is Losing Money Managing Time
It doesn’t take a rocket scientist to understand – if your client or their top management is misusing their time, they’re losing money.
And that’s just their executive team. When dealing with employees, things get murky quick. Even one minute of misused time can snowball into long lost time.
Take, for instance, a study by the University of Illinois and Microsoft, in which they looked at the “resumption of suspended applications after interruption.” To phrase it less technically: resuming a task after, say, a five minute conversation with a coworker or manager. What did they find? “Users spent an average of 10 minutes and 58 seconds within the resumption phase.” That’s 16 minutes of lost time.
It continues by offering this, “substantial time appeared to be devoted to resuming the task state and, presumably, the mental state that they had been in prior to the suspension.”
You wouldn’t necessarily consider these minute details when calculating your client’s time. After all, we expect productivity to resume almost immediately barring emotional distress or disaster.
But that’s not the case.
Now let’s talk solutions.
How to Manage Time More Efficiently
Well, when dealing with your executive management, they need to understand how important it is to have a smart scheduler that not only provides crystal clear daily projections for their own tasks and meetings – but for the entire team.
Having a smart scheduler can take some finessing to implement, understandably – your client figures they know what works best for them and have done it for years. Even if their “best scheduling methods” more accurately resemble a string theory board. In short, it makes sense to only one person – and that’s simply not efficient.
When your management embraces a system that works from the top down, incorporating coverage changes to fluctuating business demands, your employees will be more productive. When management better addresses their own time, they can examine time spent by employees.
They need to remain engaged – they need to remain focused. And a powerful scheduler can help you set up these pillars of your business culture.
But this is just one component of a really impressive, efficient machine.
Your Client is Losing Top Talent
This can be broken down into two segments: acquiring top talent and keeping top talent.
Establishing an organization where top talent can thrive is the number one motivator in attracting quality talent. A great Linkedin study provides valuable insight into these figures. According to their findings, 39% of talent leaders agree that the quality of a hire is the most valuable metric for performance.
Attracting Top Talent
But how can your client attract them? More than that, how do they organize talent and keep an eye on their movements throughout the hiring process?
We’ve recently discussed the rise of the HRIS, and these impressive suites prove invaluable to attracting top talent. Not only does a great HRIS submit job listings to multiple sites, but it will organize resumes for speedy perusal and decision-making.
When talent is contacted, an HRIS will trace their steps throughout your client’s hiring process. Not only is this excellent for ensuring your client stands out from competition, but successful hiring processes can be mimicked time and again to keep top talent coming to your client’s organization.
Keeping Top Talent
Previously in this article, we mentioned that your employees need to be productive and engaged. This is a demand made not by an organization – but by top talent themselves. Citing the same Workplace Research Foundation study (it’s a research doozy), they state that “highly engaged employees are 38% more likely to have above-average productivity.”
But how does your client measure performance?
What kind of employee strategy do they have in place?
Probably none at all.
“Only about 25% of business leaders have an employee engagement strategy” according to an ACCOR study.
But they need to engage. Especially considering a whopping “87% of engaged employees were less likely to leave their companies than their disengaged counterparts.”
A hardworking HRIS can measure performance, an indicator of engagement, and offers glimmers into future projections too. Conversely, HRIS performance indicators can isolate lackluster productivity and engagement, prompting management to take action and minimize some of those scarier statistics cited above.
Long story short – keep top talent doing what they were hired to do, keep them in the loop, and they will stay with your client.
Your Client is Losing Track of Overtime
Changes to the overtime rule are coming in December and while we’re sure your client is prepared for them, they can spell disaster to revenue if left unchecked.
Last year, CNN reported that Americans working full-time positions chalked up an average of 47 hours per week. That’s a lot of overtime. That’s a lot of money.
Your client needs to get a handle on overtime and wrangle it in whenever possible. And, you guessed it, an HRIS can assist with this, too. Like having a scheduler to manage tasks and labor more efficiently, overtime management lets your client know when employees are approaching overtime – rather than learning about it on expense reports.
Your Client Will Be Just Fine
With an HRIS, your client’s various processes are found in one place, accessible at any time, and can be altered by those with permission – including employees. Let them manage their time off, changes to banking information, and access to company documents while management signs off through the same suit of programs.
Efficiency is imperative to your client. It’s imperative to your own success, too. With so many benefits of an HRIS, you will simultaneously solve many of your client’s most pressing concerns. Because, after all, you’re in charge of their finances – and every aspect of an organization includes finance and ROI.
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