With the emergence from the pandemic, many employees have questioned their careers and choice of employer; making the decision to change employers and/or career paths, prompting a new phenomenon dubbed the “Great Resignation”. Current estimates note that upwards of 26% of the U.S. workforce could be planning to leave their current job sometime in 2021. While the drivers behind the “Great Resignation” are numerous, leading factors include returning to the office and workplace safety; the desire for remote or “hybrid” work environments; and the lack of career growth with current employers.
For accounts receivable (AR) teams, this phenomenon can create a gap in communications and follow through with customers, resulting in increased late payments and days sales outstanding (DSO). However, companies that have AR automation, including automated email, have had less disruption from the Great Resignation.
Reduces Impact of Employee Turnover
With automated, centralized email, reminders can be programmed based on electronic invoice dates, and sent automatically even if there is employee turnover in your AR team.
If you have manual AR processes, team members have to remember to follow up, compose an email or place a call to contact a customer. With employee turnover, this process is interrupted until a replacement is hired and the new employee gets oriented to pick up from where the previous team member left off. Weeks or more could go by before this happens. Late payments increase, DSO grows, and available cash on hand decreases.
Facilitates Remote Work
Email automation facilitates remote work making it easier for your company to adopt a hybrid work environment or continue remote work. If you use manual AR processes, it is difficult to effectively follow up on late payments without access to paper files at the office. Email automation is driven by electronic files which don’t require paper files or for your team to be in an office setting.
The Great Resignation has made the benefits of email automation clear. With email automation, reminders can continue even if you have employee turnover, and whether your team works remotely or at the office. Email automation reduces late payments and DSO, and keeps cash flowing.
Lockstep Collect is an experienced software partner that can help you increase efficiency and accelerate cash flow. Automated email reminders triggered by invoice date, and scheduled to fit the best time to reach your customer based on payment history can include payment due reminders prior to the invoice due date as well as a series of past due reminders. With a connected accounting solution for your accounts receivable and accounts payable teams to coordinate work with customers and vendors, you can go digital and enjoy the benefits of office automation.