Author: P.J. Yates | Director Marketing: Strategy & Digital Marketing
Date: 09.01.22

The Federal Reserve’s bid to combat inflation by increasing interest rates has come to an end, marking the end of two years of record-breaking trade volume. As a result of these increases, home purchases dropped dramatically in June. While lenders searched for ways to reduce costs due to the decreased number of transactions, many had to resort layoffs. However, we know from history that markets always come back up. A more competitive job market leads to increased hirings by companies in order keep with consumer demand.

Businesses can break the cycle of excessive layoff and hiring booms during economic downturns and booms, thanks to technology. Companies may use automation to increase production and minimize strain on employees by using it. Lenders may reduce the seasonal fluctuations in a firm’s cash flow by automating routine activities. Employees are relieved of menial tasks such as data entry and chase, allowing them to focus on more profitable human endeavors such as developing strong customer connections.

Although it may seem simple, “turning on a switch” does not successfully integrate automation into your processes. To ensure that your team makes the most of automated tools, leaders must consider several factors beforehand that will influence employee adoption rate. Planning ahead for these eventualities increases the chances of success:

  1. Changing the mindsets of employees and gaining buy in to assure adoption across the organization
  2. Building a framework for what it will take to guarantee success through the auditing of processes
  3. Enabling the ongoing process of growth with continuous training for automation after implementation

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Garner employee buy-in

Automation is sometimes linked to the claim that robots may “take over” human occupations and render humans dispensable. According to McKinsey & Company’s research, most companies that use more automation do not necessarily cut workers; instead, people move up into higher-level roles and perform new, value-added activities.

Take the banking industry, for example. Many of these firms have used technology to automate portions of the consumer experience. Despite the advent of ATMs and internet banking, tellers and other bank employees are still employed. Automation relieved people of low-paying, monotonous chores while also allowing them to focus on activities that generated more revenue and profits. Furthermore, history demonstrates that as a result of technological adoption, new jobs arise while existing ones are enhanced, labor productivity rises.

Automation comes with a lot of advantages, but some employees may be worried it’ll lead to them being replaced by machines. Leaders should explain the benefits of automation and help put their team’s minds at ease. Managers must understand how their employees utilize existing systems in order to help them understand the advantages. Even though many organisations have established processes for various procedures, employees frequently develop “micro” methods outside of the system as a way of circumventing an ineffective or broken system.

By showing employees how automation can help them reduce the amount of time they spend on labor-intensive workarounds, managers can establish the case for automation. The time saved from inputting data and using makeshift hacks to get work done is just one example of how employees may benefit from automation. Managers can also emphasize how technology and automation may assist free up staff to focus on customer relationships and book of business growth. Leaders must effectively convey automation by repeating these advantages and fostering open discussion for any concerns or concerns that may arise.

Develop an automation framework

Automation should never be used as a Band-Aid solution for every business scenario. With that in mind, focus on automating processes where human employees wouldn’t provide much value or expertise to the work at hand. Furthermore, companies must document every element of the process- both formal and informal elements that employees have established. It takes time to comprehend how employees carry out processes in their entirety. Managers can use this information to improve processes by identifying issues where tasks fail. Managers may then apply automation in order to establish a standard procedure.

Benchmarks must also be set for each stage. Automation may reduce the number of mistakes made when entering data, as an example. A benchmark that banks might use to measure their loan documentation error rates is a 10% reduction against a 13% average across all loans. The success or failure of the new process may be assessed by understanding the objectives connected with each automated trigger. Consistent reporting lowers the risk that adopting new technology will become a sunken cost while also allowing the firm to develop beyond the initial implementation.

Continue to champion automation after implementation

Benchmarks are critical for monitoring and grading the success of automation, but businesses must also remember that there is more work to be done after it’s implemented. The market will always ebb and flow; thus, time reveals new possibilities for automation. Deeper integration between partners via technology will automate more tasks in loan production over time.

As a result, more procedures will be developed to automate and employees will need further training. Companies, however, will continue to develop new methods to automate and workers will require additional education. Employees, on the other hand, won’t master the new system right away. As a result, bosses must be patient since mastery necessitates long-term training. When employees become comfortable with the system, they will be able to suggest processes that could be improved through automation.

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