What Are the Most Expensive Human Errors In Business?

What Are the Most Expensive Human Errors In Business?

No business wants to spend unnecessary money on human errors, yet they can’t entirely be avoided. While human errors will always happen at some level, automation and having the right technology in place can cut down on a lot of these. So what are the areas where human errors can ultimately be the most expensive or detrimental?

Where are the places you should put new automation and technology in place first to cut down on these errors?

Invoice Management

Invoice processing is a huge burden, financially and in terms of productivity, for many businesses. For businesses that are still using paper invoices, the problems can seem never-ending. Invoices can get lost, paid twice, paid late and those are just a few of the many errors that can occur.

When a business invests in automated invoice processing, they don’t have to worry about where an invoice went, or why it didn’t get paid on time. Everything is readily accessible in a centralized database, and the AP team can be working on things like negotiating with suppliers and making decisions based on the numbers instead of trying to manage and fix errors.

Expense Management

Along with invoice processing, expense management is another area where errors can lead to expensesadding up quickly. The errors can be related to how an employee is creating an expense report, to how it’s being processed once it’s submitted.

There’s not only a fear of error that comes along with expense management. There’s also the issue of fraud that occurs in this area.

Luckily automation and the right software can address both of these problems.

Physical Hazards

Despite the modernized workplace and ever-increasing safety regulations, there continues to be a massive amount of physical danger in the workplace.

Of course, there are certain environments that are inherently more dangerous than others, but even a slight error or lack of attention can lead to consequences that are not only extremely expensive but can even be deadly.

A lot of eliminating the risks and costs of human error resulting physical hazards comes down to a few things.

First, employees need to be well-trained. An e-learning system can help deliver this objective. More and more employers are providing training on-demand so employees can access even when they’re on-the-job to help avoid hazards and have information right there at there fingertips if they forget something.

Another component of this is making sure that employees are engaged in their work and feel like they’re in a good environment. A toxic work culture tends to be one where employees are more likely to feel overly stressed or burdened, and that can increase the chances of an accident or error.

Finally, many of the most expensive human errors are related to non-compliance. It’s not a purposeful or willful instance of not being compliant with state, federal or industry regulations, but employees just aren’t aware of them. If there is non-compliance and regulatory agencies detect it, the fines and legal fees can be astronomical. This is another place where automation can go a long way toward at least alerting key personnel if errors are occurring, so they can be stopped and corrected before becoming larger problems.



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