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Unnecessary admin is costing UK businesses £60 billion a year

Unnecessary administration tasks are damaging productivity in the UK and costing businesses approximately £60 billion per year, according to a new study from Kronos and Coleman Parkes Research.

The “£60 billion Question” report reveals that UK employees are being hindered by admin complexity and poor performing technology, with 82 per cent of respondents struggling to complete their daily tasks.

Employees currently spend 7 per cent of their working week on unnecessary administration tasks, costing UK PLCs £1,932 per year; per employee and respondents believe that providing technology to automate tasks is the answer to simplifying the working day.

Furthermore, 77 per cent of HR and Line of Business Managers cite out-dated systems and technology as their biggest workforce management challenge and 72 per cent of respondents cited a loss of productivity caused by manual systems.

Engagement is also seen as critical to business success, but something that is lacking in UK organisations. For example, 59 per cent of respondents think the CEO is more focused on the numbers rather than the employees and only 34 per cent of respondents rate employee engagement as strong in their organisation.

Neil Pickering, industry and customer insight manager at Kronos said: “This report paints a picture of a UK workforce burdened by unnecessary complexity, leaving employees torn between the competing demands of customers and management targets. Inappropriate technology and unnecessary administration are adding to this complexity, costing UK PLC £60 billion in lost productivity.

"However, small, simple, changes can create big rewards. Reducing unnecessary admin by one hour per employee, per week can save a staggering £21.6 billion for UK businesses. Focusing on employee engagement is a win-win for business and any organisation’s most valuable asset – employees.”

Image source: Shutterstock/Monkey Business Images