In the spring of 2016, the Federal Labor Association increased the salary threshold for overtime exemption. This new FLA overtime rule more than doubles the previous weekly threshold. While that could be good news for workers, it’s more complicated for small businesses, institutions of higher education and nonprofit organizations.
Without finding a way to streamline processes and increase employee productivity, many of these businesses may be forced to reclassify workers and restrict hours. Luckily, digitization can help.
Digitization provides a blueprint for successful navigation of the new law. Workflow automation, an outsourced mailroom, document scanning and document management software all can work together to expedite processing times and make a business’ employees more productive while they work, and therefore less in need of overtime.
Move Faster, Be More Productive
Digitize your business processes, and they’ll move faster and be more accurate. Here are ways digitizing can help you:
- HR automation makes the task of onboarding new hires efficient and more accurate.
- An outsourced mailroom allows your company to receive, scan and index mail within 24-48 hours, without any need to forward documents, such as invoices, from one location to another.
- Document scanning and document management software eliminate the tasks of filing and retrieving paper documents. Accessing documents from your computer or mobile device takes seconds as opposed to hours or days, virtually negating staff wasting time searching for documents.
According to the Society of Human Resources Managers, companies that are at least 50% digital say they spend 35% less time on administrative paperwork than they did with a manual process. That 35% could be the difference between employees needing to log overtime and everybody going home on-time each week, with no reclassification or reorganization necessary.
These improvements save time and money, while simultaneously lowering the risk of your employees racking up overtime wages your organization can no longer afford. Inefficiencies in processes, document receiving, HR onboarding and invoice processing are eliminated, allowing your employees to increase productivity without the need to increase their hours.
No Additional Capex with Digitization
Perhaps best of all, no additional capital expenditures will be necessary to digitize your paper-based business processes. Instead, once in place you can expect maximized efficiency to trickle down throughout your document processes.
It remains to be seen how the new overtime rules will affect American business, but that doesn’t mean your company should wait and see how it goes. Automate processes with workflow automation, mailroom scanning services and cloud document management software, and you can get out ahead of unintended consequences. Keep your employees more productive on the clock, and you’ll minimize any adverse effects the new overtime rules will have on your organization.
For more information on the FLA overtime rule and what changes to expect as a result, please read this article, “Revised Overtime Rule a Hard hit for Small Businesses, Higher Education,” from the Society of Human Resource Managers.