Disorganization Costs Businesses Billions of $$$$$$ A Year

nancy blackDid you know that disorganization can have a significant impact on your bottom line? Statistics show the average worker loses at least one hour of productivity each day due to disorganization. For example, if you have 1 employee, whose salary is $50.00 an hour and they loose 1 hour a day, 5 days a week, it costs your company $250.00 a week. In 48 work weeks a year, the cost equals $12,000.00. If you have 5 employees, on the same salary, the annual cost to your company is $60,000.00.
Some other costs of organization are:
• Salary and productivity costs escalate because people loose time trying to find what they need, when they need it”.

• Sales are lost due to lack of follow up because of inefficient paper flow and time management systems.

• Cost to reproduce or repurchase something that you already have, but cannot find.

• Overnight Express Mail costs for last-minute deadlines.

• Interest lost because of invoices that were not sent to customers.

• Interest lost on cash and checks that have not been deposited.

• Late payment fees.

Many CEO’s, managers, and business owners say “I know I should get organized but I do not have time.” Consequently they work more hours than ever.
Working overtime causes many stress related illnesses, resulting in more sick time and soaring health care premiums.

Employees try to multitask so they can get out of the office earlier in the day. New studies prove that people who multitask are less inefficient, make costly errors, and are more apt to have accidents while working.

For years companies have spent millions of dollars sending employees to all day seminars to improve their organizing skills. They think that it is only $69.00 – $99.00 a day per employee and do not add the cost of the employee loosing 8 hours out of the office ($400.00 a day at $50.00 an hour). The employee then comes back to the office with another stack of papers and hasn’t spent a minute implementing what they learned.

In the over thirty years that I have been an organizing consultant, I have learned that there is a better long term return on a company’s investment if an organizing consultant works one-on-one with the employee in their workspace. In only a few hours a system can be created to suit the individual’s work and learning style. In this process the consultant works with the employee to create a system that they are comfortable with that will enable them to work more efficiently.

After reading this, do you think disorganization is impacting your company’s bottom line? Only you know the answer to this question.

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