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Compounding advantages in labor savings

I talk a lot about efficiencies by using technology. The question always comes up, (especially from nervous data entry clerks) what do you do with all the saved labor? Do you just fire people?

That uncomfortable topic makes everyone pull some kind of face. 

The truth is, companies that are pulling away from the pack are using the technology to re-allocate labor, because nobody likes to fire employees. There are some things that machines and algorithms just can’t do, and humans should stick to those things! 

Rather than letting go of the employee that used to collect your money, you can reallocate that labor to providing above and beyond service to the customers who are paying their own bills. Two things happen, the billing isn't personal (no hard feelings) and the time is spent talking about things that are important. When you free up the time it takes to do something that destroys human connections, you have more time to nurture relationships.

Let's look at two companies head to head. The one who employs the above tactic, and the one exact competitor who doesn't.

ABC cabinets reassigns their collections agent to proactively call customers to add value, while XYZ cabinets uses that labor to call and ask the same question every week..."when will you pay us, and how much?".