Study shows that intranets can substantially increase productivity

Regardless of economic conditions, workforce productivity is critical to sustaining profit margins and market share. Employees who work efficiently can devote more time to serving customer needs, finding new revenue opportunities and being innovative.

In a recent user study published by American-based Agency.com, employees reported savings of up to three hours per week by using an intranet or corporate portal to assist them with their jobs, amounting to almost one working month per year, the implications of which, for large enterprises especially, are staggering.

According to Migal van As, MD of Intervate, developer of the local intranet and extranet solution and development framework IntraCS, although only very recent studies have been able to qualify and quantify the returns on intranet and portal investments, organisations have been experiencing benefits for some time now. "Over the past five years many companies have invested heavily in intranets and corporate portals with the expectation that they will contribute to lower operating costs, improved workforce productivity and increased customer and employee satisfaction. However, measuring portal benefits and identifying metrics to track portal return on investment has been a challenging task for companies looking to justify their expense," he says.

Realising the importance of being able to measure returns on intranets and portals investments, Agency.com commissioned Harris Interactive, a worldwide market research and consulting firm, to facilitate a survey of over 500 full-time employees over the age of 18, with access to an intranet or corporate portal, in the banking, telecommunications, pharmaceutical, biotechnology and medical device industries. Using the Harris Poll Online database, they were sent e-mail invitations to participate in a 10-minute online survey.

The objective of this survey was to assess the extent to which intranets and corporate portals were affecting workforce productivity, delivery of customer service and employee job satisfaction, as well as identify the key content, features and design factors associated with effective intranets and corporate portals.

The first significant finding was that these solutions have a tremendous effect on workforce efficiency. Thirty-six percent of employees reported that their portal greatly impacts on their ability to work productively and that an average saving of 2.8 hours per week, or around 7% of their time, was being realised.

It was also identified that while intranets have long since been thought of as an internally focussed tool for cost savings and efficiencies, they are now turning outward, impacting on employees` ability to provide effective customer service. The study found that 30% of the employees relied heavily on the features and information available in their portal to provide good customer service. Furthermore, it found that intranet and corporate portal satisfaction is directly influenced by content, features and design factors. Employees estimate that their productivity savings would double if their portal were adapted so they could easily access all information and tools necessary to perform their jobs.

In addition, employees who were extremely satisfied with their intranet or corporate portal used it more often and reported a significantly higher level of benefit. For example, employees who use their portal more than eight hours per week experience nearly nine times the productivity gains of those who use it for two hours or less per week.

The survey also identified that employees who are highly satisfied with these solutions experience a high level of job satisfaction, and they also prefer self-service access to certain human resources (HR) and administrative functions, decreasing their dependence on corporate personnel.

Finally, it was found that employees share knowledge primarily because of substantial benefit to them and not because of a company-dictated policy or incentive programme. Eighty-six percent of employees who share knowledge reported that doing so saves time for them and their colleagues, but of those that don`t share, 74% lack a tool or method to help them share easily. In addition, 28% believe their portal greatly supports their ability to collaborate effectively with other employees.

With the technology environment changing at a rapid pace to support the new knowledge workplace, it is vital that organisations make the correct technology choices, and the user study identifies some key actions that should be taken when designing and implementing next generation intranets and portals.

Firstly, it is important to identify and track portal benefits, as they relate to workforce productivity, customer satisfaction and employee satisfaction. This way companies will know whether the solutions are working for them. Secondly, usage and satisfaction should be tracked. Key metrics should be identified to measure increased usage, and usage should be tracked monthly or quarterly using site statistics and employee usage surveys.

Thirdly, companies need to find out which content and features are extremely important to employees but are not being provided. Intranet and portal initiatives should then be prioritised by comparing their contents and features to the "cost of entry" and "biggest opportunities" identified in an analysis.

Fourthly, the study identifies that employees prefer self-service for certain administrative tasks, so companies should consider making provision for this, and in so doing analyse the ROI, making sure to include budget for proper training and awareness building.

Finally, sharing documents, knowledge and ideas is beneficial to companies, but won`t happen unless employees have the proper tools. These should also therefore be provided for, and incentives, as a quick way to encourage non-sharers, should be explored.

For more information on the study go to www.agency.com