How much does an unproductive workforce cost a business?
57.5 days of work per employee per year
According to Global Corporate Challenge (GCC), businesses lose nearly a whole quarter of the working year due to a lack in productivity. This cost is 10 times higher than the usual leave of absence cost. It can bleed businesses of up to USD $1.5 trillion per year.
Japan Motors Senegal, an authorized dealer of Nissan Vehicles in Africa, experienced this time leak first hand. So, they decided to seek out an automated solution before costs got any higher.
Their team includes full-time technicians who often work on a variety of activities. Each employee would come in for an 8 hour day and add their work data to a spreadsheet. Supervisors would then collect and manage this information. This was a cumbersome process that took 1.5 hours a day. And yet, it was still difficult to track what jobs an employee worked on and how long they were taking to finish them.
Johnny Bright Sevor, the company’s Aftersales manager, knew the admin overhead was only going to increase as the company grew. He sought a solution that would not only trim operational costs, but also increase productivity. He wanted visibility into time against jobs for each employee to accomplishing this.
Japan Motors now uses Replicon’s Time & Attendance solution to track their employees’ day-to-day activities. Technicians punch in at the beginning of their job using the automated system and punch out when finished- no data entry required.
This helped Japan Motors collect accurate and consistent data to run weekly reports. They were also able to identify which jobs took up the most time and which employees were the most productive.
“If a job is only supposed to take 2 hours, but a technician takes 3-4 hours, we need to ask a lot of questions,” says Sevor.
“Replicon has really helped us solve that problem.”
The company soon gained $400 a month by increasing productivity.
Employees also began to love the system. They were able to see exactly what was taking up their time and measure their own efficiency.
“These are full time employees with a bonus based on output,” says Sevor. “It brings out the best in the technicians since they are accountable when they clock in and out.”
This transparency into their own key performance indicator – productivity – proved to be a great motivating factor.
Sevor looked into many solutions. Eventually, he settled on Replicon because it met his main criteria:
Easy-to-use: Japan Motor’s employees were hesitant to transition over to a new system. So, Sevor knew he needed to pick a solution that was intuitive and quick to adopt.
Responsive Support: This was a distinguishing factor in Sevor’s decision. Many questions and potential challenges arose as the company contemplated switching systems. So, having an accessible and knowledgeable support team made a huge impact.
Configurable Solution: The company needed to track employee activity on a much more granular level. They also needed a customized weekly report that met their unique business needs.
Japan Motors is a classic example of how small changes can bring about great change. They next want to integrating Replicon with their new Dealer Management System (DMS). The company is excited to gain even more insights into their workforce and further increase productivity.