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What happens to the time an automation saves?

Frank Signal · · 1 min read

An automation can free up hours while payroll stays the same. The business case should explain how the company will use that time: to handle more work, reduce an expense, or avoid a future cost.

Estimate the work that will change. Look at how often the task occurs and how much time people spend on it, including the review that will still be needed. That gives you a more useful estimate than assuming the entire task disappears.

Multiply the hours released by the fully loaded labor rate to estimate capacity value. It helps compare opportunities of different sizes. Payroll savings require an actual change in expense.

A team might use the extra capacity to clear its backlog or handle more customers with the same staff. It might also reduce overtime or avoid a planned hire. Agree which outcome the operator intends, then measure that outcome. Moving people to other useful work and cutting an expense belong in different parts of the calculation.

Automation also creates work. Someone may need to review exceptions, maintain access, or update the process when another system changes. Count that effort, implementation costs, and ongoing third-party usage when you compare the benefit with the cost.

Set a baseline and a date to review it. Compare similar volumes and levels of difficulty. Total hours can rise during a busy month even when each case takes less effort; a quiet month can make an unchanged process appear more efficient.

Before approving the project, write down what the team expects to do with the time it gets back. That decision gives the person reviewing the results something specific to check.

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