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How to Calculate the Cost of Inefficiency

Recently, we gave you some brief statistics on how much time is wasted by professionals looking for business documents.

According to Gartner, professionals spend 50% of their time searching for information, and take an average of 18 minutes to locate each document they are looking for. And it’s no wonder when you consider that a company’s documents are stored in filing cabinets, desktops or laptops, in email, or on a central server.

So how can you calculate the cost of chasing down all these documents? It’s simple actually. Just calculate the wasted time employees spend searching for documents and then multiply that by their salary. Take the following example from Harmon.ie:

Users waste 30 minutes a day (16 days a year) searching for documents, on average. That’s $3,900 per employee per year in lost productivity (assuming $30/hour), and more vacation time than the average US worker accrues each year .

These are just a few of the eye-opening statistics available in our new document management white paper created by our partners at M-Files. To learn more, you can download this white paper for free.