Productivity loss: how much money is your organization losing?

There is great potential for increasing the IT Happiness in the workplace. Research shows that you can easily increase the productivity, reduce the pressure on your IT Service Desk and save up on Information Technology costs. Let’s put some numbers on this to visualise the potential.

Information Technology Pains in Numbers

“Poorly functioning IT systems” together with “inadequate digital skills” result in huge losses of productivity, new research says. Let’s assume that we have 1,000 IT end users spending on average 20 hours/week using IT at an average cost of around €27/hour (EU). According to academic research on IT-related loss of productivity, organizations experience an average productivity loss of 7.6%, which in this case would cause an inefficiency of around € 1.9 million yearly.

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Calculate productivity loss due to IT issues

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Productivity loss

Your yearly productivity loss is:

Summary

Description Information Number of IT end users Monetary value of productivity loss
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Assumptions: IT end user spends 20h/week on IT workplace. Average cost per hour in EU is € 26,76 (2017). Average number of working weeks per year: 48. Productivity loss is calculated by University of Twente, The Netherlands

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Another research shows that every employee in a company encounters IT-related problems on average 1.7 times a week. Less skilled employees do so even more with 2.5 times a week. The time necessary to solve such a problem is approximately 35 minutes. While assisting a colleague sounds like a good thing, the lost productivity is enormous. Therefore, it translates into huge Information Technology costs for your company. Digitally capable workers “waste” a considerable amount of time helping the less digitally educated ones.

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ProductivityBesides the productivity loss, the IT Service Desk is affected as well. Imagine your company has 1,000 IT end users raising a ticket every month and your IT Service Desk is spending 5 minutes per ticket/call. Reducing the number of problems with 20% leads to a huge time saving of nearly 17 hours per month, which equals to 200 hours per year.

A certain amount of Information Technology issues will always be present, but reduction always pays off. There is an extreme potential IT gain to realize. Be sure you monitor what the most important problems are and how the end-users (try to) solve them. Make sure you measure the IT Happiness.

We are happy to share insights into our IT end user satisfaction survey approach with you structured in a process based on the Deming PDCA (Plan, Do, Check, Act) wheel of continuous improvement. An IT Survey is only as successful as you allow it to be. Good planning and execution leads to actionable results which will ultimately impact your bottom line.

We offer the IT Happiness Platform in order to give IT departments insight in the experiences that IT end users have with the digital workplace. For more information, please click here.