--- title: Technology (IT) Impact On Payroll description: Payroll, Technology cost, Impact on Payroll, Revenue, Profit Margin, Expenses, IT Process, IT Strategy, Business Process, Business Strategy image: https://encsolutions.ca/hubfs/Imported_Blog_Media/screen-1-3.jpg --- [![ENC Logo HEADER](https://encsolutions.ca/hs-fs/hubfs/ENC%20Logo%20HEADER.png?width=290&height=38&name=ENC%20Logo%20HEADER.png "ENC Logo HEADER")](https://encsolutions.ca/) [![ENC Logo HEADER](https://encsolutions.ca/hs-fs/hubfs/ENC%20Logo%20HEADER.png?width=290&height=38&name=ENC%20Logo%20HEADER.png "ENC Logo HEADER")](https://encsolutions.ca/) - [What we do](https://encsolutions.ca/what-we-do) - [How we work](https://encsolutions.ca/how-we-work) - [IT Department](https://encsolutions.ca/it-department) - [Co-Managed IT Dept.](https://encsolutions.ca/co-managed-it) - [Careers](https://encsolutions.hiringplatform.ca/list/careers) - [Blog](https://encsolutions.ca/blog) - [Contact](https://encsolutions.ca/contact-us) - [What we do](https://encsolutions.ca/what-we-do) - [How we work](https://encsolutions.ca/how-we-work) - [IT Department](https://encsolutions.ca/it-department) - [Co-Managed IT Dept.](https://encsolutions.ca/co-managed-it) - [Careers](https://encsolutions.hiringplatform.ca/list/careers) - [Blog](https://encsolutions.ca/blog) - [Contact](https://encsolutions.ca/contact-us) # Technology (IT) Impact On Payroll [Gurmeet Judge](https://encsolutions.ca/blog/author/gurmeet-judge) Jan 24, 2019 All business owners/leaders understand their biggest expense in business is Payroll. So, are you concern about your return on investment on payroll? Financially savvy business owners/CEOs understand the return on investment on human capital – viewing their employees as their most important business asset.  The fact is, if you experience 15 minutes of unproductive, non-billable time, it translates to a loss of 0.25hours per day in a traditional 40 hours work week. In a week, you’ll have lost 1.25hours. This translates to a total loss of 65 hours, annually.  ![Screen Shot 2016-12-20 at 3.34.34 PM](https://encsolutions.ca/hs-fs/hubfs/Screen%20Shot%202016-12-20%20at%203.34.34%20PM.png?width=300&name=Screen%20Shot%202016-12-20%20at%203.34.34%20PM.png) Think about how much revenue you would draw if you increased your productivity by 1.25 hours per week. It’s not a hypothetical issue. Reliable [research findings](https://www.growthforce.com/blog/understanding-roi-on-human-capital-increase-your-cash-flow) reveal that an increase in productivity in such a degree would result in approximately $93, 000 for a business worth $3 million.   **Technology is small item on your list of expenses list but has most impact on your Payroll.**   **Measure:** In order to understand your technology impact, first step is to measure. Do you have ways of measure following? 1. How many technology related incidents create by staff daily, weekly & monthly? 2. How many system and/or application related incidents generated? 3. How many maintenance related incidents generated?  Calculate Numbers: - Ensure accuracy of all incidents and calculate total numbers of incidents. - Calculate average resolution time on incidents. - Simply calculate Hours: **Resolution time x incidents** e Average resolution time 3 hours x 50 incidents = 150 Payroll hours  **Impact on Payroll**: You don’t need exact numbers to understand impact on payroll, consider hypothetical numbers or averages. For example, If business have 50 employees that translates to over 200k monthly payroll. And approx. spending 20 to 40 hours on above items: consider investment lost out of 200k payroll monthly. **Is it possible to reduce and control this impact? Of course, you need three step process** **Measure**: Setup your business to get accurate data daily and calculate averages to get starting point **Strategy**: Build strategy to setup goals and plans to achieve them to lower and avoid incidents **Process:** Deploy ongoing process for testing, analyzing and re-tweaking your technology before it impacts your payroll. ***Every process required commitment, discipline and structure to deliver results from your process, build your teams with these values to deliver your process daily.***  **Need help? Take action** Partner with Encompass – [contact our team](https://encsolutions.ca/contact-us) Also review – [Impact on Revenue blog](https://encsolutions.ca/blog/technology-impact-on-revenue) Understanding cost – [access cost calculator](https://encsolutions.ca/it-cost-calculator) [Insider](https://encsolutions.ca/blog/tag/insider), [Data Security](https://encsolutions.ca/blog/tag/data-security), [Productivity](https://encsolutions.ca/blog/tag/productivity), [Business Risks](https://encsolutions.ca/blog/tag/business-risks), [Time](https://encsolutions.ca/blog/tag/time), [Teams](https://encsolutions.ca/blog/tag/teams), [Revenue](https://encsolutions.ca/blog/tag/revenue), [IT Process](https://encsolutions.ca/blog/tag/it-process), [Business Impact](https://encsolutions.ca/blog/tag/business-impact), [Hard Cost](https://encsolutions.ca/blog/tag/hard-cost), [IT Strategy](https://encsolutions.ca/blog/tag/it-strategy), [Technology Cost](https://encsolutions.ca/blog/tag/technology-cost), [Payroll](https://encsolutions.ca/blog/tag/payroll), [Profit Margin](https://encsolutions.ca/blog/tag/profit-margin) ## Related Posts [![Celebrate diversity.](https://encsolutions.ca/hs-fs/hubfs/Celebrate%20diversity..png?width=352&name=Celebrate%20diversity..png)](https://encsolutions.ca/blog/understanding-soft-cost-of-technology-it) [Insider](https://encsolutions.ca/blog/tag/insider) Jan 24, 2019 ### [Understanding Soft cost of Technology (IT)](https://encsolutions.ca/blog/understanding-soft-cost-of-technology-it) **Why it’s difficult to calculate Soft Cost?** Most companies classify soft costs as those expenses... [Read More](https://encsolutions.ca/blog/understanding-soft-cost-of-technology-it) [![](https://encsolutions.ca/hs-fs/hubfs/Stock%20images/Happy%20man%20with%20thumbs-up%20leading%20a%20successful%20business%20team.jpeg?width=352&name=Happy%20man%20with%20thumbs-up%20leading%20a%20successful%20business%20team.jpeg)](https://encsolutions.ca/blog/business-and-technology-risks-expectations-vs.-reality-0) [Productivity](https://encsolutions.ca/blog/tag/productivity) Jan 24, 2019 ### [Business Impact of Delayed IT Decisions](https://encsolutions.ca/blog/business-and-technology-risks-expectations-vs.-reality-0) If you have a [growth mind](https://encsolutions.ca/blog/technology-impact-on-revenue) set and have goals and [objectives](https://encsolutions.ca/blog/3-ways-to-it-strategy-and-roadmaps) to reach, your most precious resource... [Read More](https://encsolutions.ca/blog/business-and-technology-risks-expectations-vs.-reality-0) [![ITDepartment](https://encsolutions.ca/hs-fs/hubfs/ITDepartment.png?width=352&name=ITDepartment.png)](https://encsolutions.ca/blog/symptoms-of-low-performing-it-department-technology) [Insider](https://encsolutions.ca/blog/tag/insider) Jan 24, 2019 ### [Symptoms of Low Performing IT Department (Technology)](https://encsolutions.ca/blog/symptoms-of-low-performing-it-department-technology) **IT Department and Revenue Performance** What differentiates businesses with increasing revenue gains... [Read More](https://encsolutions.ca/blog/symptoms-of-low-performing-it-department-technology) [![ENC Logo Footer](https://encsolutions.ca/hubfs/ENC%20Logo%20Footer.png)](https://encsolutions.ca/) At Encompass, we foster a culture of accountability and customer advocacy. We set high expectations and target dates and we keep our promises and commitments to our customers and co-workers. 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