ActionWorks® Solutions for Manufacturing
Employee Provisioning
Increasing Employee Productivity and Reducing Costs
How much does it cost your organization when an executive doesn't have all the tools needed to be productive, including everything from a computer and phone to access to the company's information systems? Worse yet, how much is this costing your company annually when you consider all of your employees? Many of Action Technologies' Global 1000 customers have found employee provisioning costs average $2,000 per new employee, representing losses in the tens of million per year, per company.
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The process of bringing a new employee into the company, or upgrading resources for existing employees, seems simple enough. Typically HR creates a detailed list of all the procedures, including the documents a new hire needs to sign, intended to ensure that all the details for every new employee are complete. Sometimes this list is stored in an application, or more frequently, in a document management system. Yet, if this process were universally effective, why do companies continue to face issues—and extra costs—with employee provisioning? It's because, in spite of the list, there is no clear accountability and visibility for who is to deliver what by when. Moreover, employee provisioning is a decision-process, meaning machines don't decide what type of computer configuration an executive gets or what training a new assembly worker needs, or what access to specific information systems one employee receives over another—people do. Unless the ability to negotiate due dates and deliverables and to record a commitment from an individual to delivering on target are functions of the employee provisioning process, the process will surely fail. The result: unnecessarily long cycle times, decreased productivity, unhappy recruits, and significant costs for the company.
Suppose an executive's salary is $325,000 annually. Research shows that if that executive doesn't have the appropriate tools in the first three weeks in a new position, then he or she is only 60% productive, costing the company in excess of $7,500. The costs increase exponentially beyond three weeks. Now consider all of your employees. Suppose the average knowledge worker earns $80,000 in total annual compensation. Not having the proper tools in the first three weeks on the job means an individual may only be 40% productive, resulting in a loss in productivity to the company of $2,160. In a medium-size company with 4,000 knowledge workers and an annual turnover rate of 20%, this amounts to an annual loss of $1,700,000—just from a single support process.
One of our automotive company customers cut average provisioning time from 24 days to 3.5 days, resulting in huge productivity gains, huge financial returns, and huge relief for managers.
On average, Action Technologies is able to make our customers' employee provisioning process 80% faster. And because their employees can get to doing what they were hired to do, instead of waiting around for equipment or access, the end result is a savings of millions of dollars a year in regained productivity, with ROIs of well over 100%.
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