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Question |
Answer |
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How do I interpret this chart? |
The Automation Impact chart shows the potential salary costs that could be optimised (via automation of jobs) if the filtered technology types are implemented at the selected timeframe. The grey bar on the left shows the workforce’s current total salary costs; the grey bar on the right shows the possible future salary cost after implementing automating technologies. The bars in blue between the current and future state show a disaggregated view of potential salary cost savings by org unit. The total potential salary reduction that could be through automation is listed on the bottom left tile. |
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How is Automation Impact calculated? |
Automation Impact (reduction to salary costs) is calculated using three key variables: FTE x salary x automation risk rating. For example, an Accounting Department has 10 Accountant FTEs. The sum of the 10 FTE job salaries (e.g. $1M) is multiplied by the Accountant job risk rating at a particular point in time (e.g. 90%). $1M x 90% = $900,000. This job budget impact for the Accounting Department is then added to salary savings across other org units in the workforce to give the total Automation Impact. |
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How is Automation Impact represented? |
The Automation Impact in your workforce is represented in the preferred currency provided in the data onboarding process. These figures (including current and future total salary budget) are based on present value. No economic inflation or growth adjustments have been made. |
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Is the cost of implementing emerging technologies considered? |
Faethm does not currently model the cost to procure and implement emerging technologies. We partner with some of the world’s foremost companies to support our clients to implement these technologies. |
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Is the cost of redeployment considered? |
Faethm does not currently model the cost to re-deploy people (e.g. via strategic human capital and operating model transformation projects). |
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How are these insights applied? |
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