- Employee Relations
- Laureen Peltier
Can We Work Less and Produce a Better Product?
- Christa Heibel
- 2 June 2015
There’s a myth that if you want to be promoted in a company, you should walk around the office with a cell phone pressed to your ear and a wad of papers clenched in your hand. Before long, senior managers will say, “That guy is really busy and working hard. Promote him!”
Why does looking busy mean being productive?
Employees seen working nine-hour days and longer are commonly viewed by the company as being committed to the organization, while the employee who gets his job done in eight hours is seen as less dedicated.
It may seem like an oxymoron, but it’s possible to work less and produce more.
American hourly employees work on average 47 hours a week and exempt employees over 50 hours a week. With compensation and benefits costs rising, companies need to cut costs. As employee compensation is almost 65% of a company’s overall expenses, cutting costs means cutting employees. That typically means fewer full-time employees to produce the same amount of work, which means, for example, that a customer service representative must answer 120 calls a day instead of 90.
An alarming trend is taking place in America of overworking employees in an effort to reduce costs. But reducing cost does not equate to increased productivity and service (or, by extension, revenue). In fact, the opposite is true.
Overworked employees demonstrate stress on the job, which can lead to performance quality and service issues. This is costly in terms of customer service and company reputation, as well as production (costs rise when you have to remake a product three times because of errors, or your customer has to call four times to get a resolution).
The most efficient process is going to fail if the employees are asked to do too much. With so many choices, consumers have little patience for growing-pains. They are happy to spend their money elsewhere on a product that cost the same and offers better service. Once customers are lost due to poor service, it is difficult and costly to win them back. Companies often resort to incentives that cut their profit margin, or rehire for lost employees, putting the company back in the same place where they started – needing to cut costs.
How does a company manage the rising cost of doing business, given higher demands from customers?
The solution is clear: An Outsource Partnership.
According to Emma Jones, the founder of Enterprise Nation, this makes strong business sense. “Focusing on what you do best and outsourcing the rest is the best way to grow,” she says.
How does outsourcing impact employees? Once customer service has been outsourced at 75% the cost of an in-house customer service department, the company is able to allocate employees into appropriate departments and strengthen its overall performance ratio. Employees remain employed, engaged and successful. The company remains financially strong and is able to grow and compete in a global market.
Outsourcing at its best should be seamless to the customer, and cost-effective to the company. A good outsource company will provide the best in service to its client and their customers, and offer the most competitive price to its client. It is a partnership at its finest.
Too much work, not enough time.
If you or your company is struggling with too much work and not enough time, or your costs are too high and you don’t know what to do, CH Consulting Group can help. Our experienced consultants have Six Sigma, cost analysis and project management skills that will quickly get you back on track.
Take the first step in making 2015 your most successful year!
As Roger von Oech said, “It’s easy to come up with new ideas; the hard part is letting go of what worked for you two years ago, but will soon be out of date.”
Contact CH Consulting Group for your free consultation.