Are Manual Workflows Costing your Enterprise?

Quixy Editorial Team

August 9, 2023

A successful enterprise prefers smart work over tiresome labor. Manual processes accomplish the polar opposite of a quick and absolute job. Yet, surprisingly, some businesses are still unwilling to abandon manual operations. The prospect of coding and related complexities may prevent them from moving further. Fortunately, no-code development has emerged to assist these businesses.

The mechanism of the manual workflows depends on passing information from one another or copying and pasting data within the systems or sometimes outside. Therefore, manual processes are also known as swivel chair integrations. Even in this age and time, the tasks are repeatedly performed, even for the simplest job.

According to the latest statistics, companies are missing almost 61% of the automation opportunities. In cases, if companies initiate the automation process, then just utilize 22-39% and leave the rest on manual.

If you’re still using manual processes, you’re missing out on a slew of benefits from workflow automation systems. There is a lot more on the line than merely being behind the times.

Ways to check the harm by manual processes in Workflows

The inefficiencies of manual processes are not minor. If you think that teams will get around with a little wiggle room, then it is time you come out of the misconception. Here are a few ways to check the fatality of the harm manual processing is causing to your business.

1. Compromises productivity

Using manual processes for simple tasks such as populating multiple forms with names and email addresses is popular. However, the work will be repetitive and will entail damaging creativity. Furthermore, before anyone would realize, the team will lose 22% of the time. Altogether, manual processes will wreak havoc on your team’s productivity. In a research, it was found that 60% of the time is spent on duplicating tasks by an employee in a manual process.

2. Diminishing client satisfaction

We have been talking about the internal team damages and production losses caused by manual processing. It is evident that manual processes are not at all cost-efficient at the internal level. The internal working is the basis of ultimate output. If manual processes are creating a disturbance at the internal level, customer satisfaction will definitely compromise. As per Accenture, 73% seek an easy user experience, out of which 61% want it to be quick and seamless. The same survey tells that 52% of the consumers switched their service providers due to bad user experience. All this caused them an estimated loss of worth $1.6 trillion.

Also read: 5 No-Code Ways to Upgrade Automated Workflows

3. Translucent track record

The manual workflow has the major drawback of an unclear track record. Also, the data produced isn’t 100% accurate. Therefore, the result of the same has high chances of going haywire. Besides, a lack of visibility in the track record results in consumer dissatisfaction. For example, during the pandemic period, Public Health England reported that almost 16,000 COVID-19 cases weren’t reported due to errors of manual processes.

4. Hamper the growth of the business

An unsaid and widely accepted fact about manual processes is that they are slow. We are living in a world where competition is radically increasing. The businesses that can’t keep up often fail to succeed. It is highly likely to be left behind with manual processes if the competition is with automated companies of similar fields. 

5. Mistake prone work

Is it considered professional to deliver work with mistakes? Perhaps, the answer is no. Owing to the current competitive world, there is absolutely no space for human errors. But, being said that, if using manual processes, then mistakes are unavoidable.

• Based on the research, a person makes 10 mistakes within 100 steps. However, if manual processes are used for redundant work, the number of mistakes increases substantially.
• When manual entry techniques are used wherein the data are directly copied from the spreadsheets, the percentage of human errors is between 18% and 40%.
• The common verification method, such as visual checking, exhibits relatively more errors than double entry.

Similarly, other tasks also bear such substantial mistakes that are unavoidable with manual processes.

6. Jeopardizing compliance

As discussed above, with manual processes, human errors are unavoidable, thus resulting in jeopardizing compliance. Furthermore, the repercussions of non-compliance can result in a financial dent and even hamper the company’s reputation. For instance, when banks use manual processes to check-in new clients, the employees might make silly errors that could cost substantially. Reportedly, Citi bank has paid a penalty of almost $1 billion for clerical errors.

7. Inconsistent workflow

Since the machines came into existence, they have pointed out some major flaws that we humans can’t fight. For example, with manual processes, the consistency among the workforces will always differ. It will become a monumental task if you try to reconcile workflow among hundreds and thousands of employees.

For example, businesses like mortgage lending, claim processing, shipment tracking, and others can’t afford inconsistency or errors in the work. In cases of minor errors, the chances are high that a company or organization encounters colossal repercussions.

8. Spiked labor cost

Organizations are wasting a hefty amount by employing people for repetitive tasks like training, payrolls, and others. Precisely, manual processes are making organizations drain a major chunk of the revenues for a mere task for copy-pasting.

Actions like data entry and rework can be easily managed by automation without involving any physical help. In a research, it was found that out of the total account payable, 62% goes in favour of the labourers. Also, during a paper-based typical onboarding process, manual work almost doubles the cost and time.

9. Outsourcing increases labor cost

As discussed above, labor cost is taking out a major chunk of the account payables of the company. Another factor that increases the labor cost is outsourcing which is a crucial part of manual processes these days. Presently, the global outsourcing market is around $92.5 b. Moreover, the market for outsourcing services has increased substantially due to the pandemic.

Outsourcing also comes with other drawbacks like the risk of leaking sensitive data, delay in work, unmonitored work, and above all, errors. Apparently, outsourcing puts your company’s reputation and compliance at risk. 

10. Zero innovative approach

The working mechanism needs to have an innovative approach to keep up with the market. Also, the same boosts employees to test their potential. All these factors aid the organizations in strategic activities and valuable business building. However, despite the fact, that manual processes turn down all sorts of innovation. 

Don’t navigate the automation landscape blindly. Let our Automation Report Card be your guiding light toward success.

Almost 70% of companies using manual processes have reported that innovative technologies create a distraction for them. Moreover, due to the usual mundane, 41% of the activities offer little satisfaction.

Also read: Five Strategies to Improve your Workflow Management Software

Conclusion

With such huge numbers of drastic losses, some still believe manual processing to be easy. The reason behind the same is the complexities of coding. Undeniably, it isn’t easy to integrate code-based functionality in an organization. Above all, the tech teams are burdened with legacy maintenance and project backlogs to manage meticulously. The company running with manual processes finds all this difficult to get a grasp upon.

To everyone’s rescue, no-code operations have been discovered. The same can tackle the fall-backs of manual processes and deal with the pain points of coding. With such tremendous support, you can imagine your business prosper. 

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