Hidden costs: an untapped treasure in Swiss SMEs
UNDERSTAND THE HIDDEN COSTS ASSOCIATED WITH THE LOSS OF KNOW-HOW
What if the key to budget savings lay in the invisible? In many Swiss industrial SMEs, the hidden costs associated with the loss of know-how represent a largely underestimated source of savings. At ColeArnis, we think it's time to shed some light on this phenomenon.
Hidden costs are economic losses that are very real but do not appear in traditional accounts. They come from daily malfunctions in the organization: overtime, waste, errors, incidents or even poor communication of instructions. These costs take several forms, such as overtime pay, overconsumption, or loss of opportunities such as an unsatisfied customer who does not return.
According to the work of ISEOR, each employee generates an average of 36,000 CHF in hidden costs per year, which represents up to 27% of turnover. And a significant part of these losses is directly linked to the gradual disappearance of key know-how in the company.
A study conducted at PX Group, an industrial player from Neuchâtel, revealed that 30% of the payroll could be impacted by the loss of know-how. Each malfunction analyzed generated an average cost of 8,480 CHF per year. These figures show that maintaining operational skills is not only a question of human resources, but a major economic challenge.
Concrete examples: In the administration, some critical tasks such as generating documents for export often require a very limited number of people. In case of absence or departure, errors may occur, delaying deliveries or generating non-conformities. In production, essential operations such as self-control can be forgotten if the know-how is not well transmitted, leading to scraps or line stoppages. These malfunctions, although occasional, add up over time and become significant sources of hidden costs.
PRESERVE KNOW-HOW, A STRATEGIC DRIVER OF PERFORMANCE
Faced with this observation, it is becoming obvious that maintaining business know-how is a strategic lever for SMEs. It is in this logic that ColEarnis offers a turnkey solution.
Our SaaS platform makes it possible to capture business actions and critical procedures through videos, tutorials or simple and contextualized content. It also makes it possible to structure this information so that it is easily accessible to all employees, directly in the field. This promotes the rise in competence, versatility and autonomy of teams.
In addition to the immediate benefit in efficiency, the preservation of know-how makes it possible to avoid between 35% and 55% of hidden costs, according to estimates from the PX Group study. It also makes it possible to absorb an increase in workload of 10 to 15% without the need to recruit.
Rather than engaging in drastic savings plans or putting pressure on teams, why not start by valuing what you already have? The know-how of your employees is a strategic asset. Knowing how to preserve it means reducing losses, securing business, improving well-being at work and strengthening the competitiveness of your company.
At ColeArnis, we support Swiss SMEs in this transition towards a culture of transmission. By making the invisible visible, we help you transform your hidden costs into sustainable performance.
