The Cost of Robotics in the Workplace

The Cost of Robotics in the Workplace

Robots in the workplace are rapidly increasing in popularity. According to the National Institute for Occupational Safety and Health (NIOSH), robots are becoming more prevalent across job sites and are no longer confined to cages and robotic work cells. Instead, today’s robots are designed to work alongside, move amongst, and be worn by human workers. The increase in popularity can be attributed to the numerous advantages they offer, which include improvements in productivity, efficiency, and safety. However, some organizations remain concerned about the investment in adopting such novel solutions, especially in industries where robots are still relatively new.

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Whether you’re considering a robotic vacuum or a delivery service robot, it’s important to understand that there is an initial investment required, along with ongoing costs. When selecting workplace robots, understanding both the total cost of ownership (TCO) and the expected return on investment (ROI) is crucial.

From employee support to customer retention, today’s robots can impact your operations in surprising and powerful ways. As you consider the many ways a robotic fleet can benefit your operations, it becomes clear that the advantages of robotics in the workplace quickly outweigh the costs.

The Cost of Robot Labor

One of the highest ongoing expenses of any business is headcount. Budget cuts and labor shortages have made it extremely difficult to hire new workers. Robots act as a powerful complement to your existing workforce by filling the gap created by labor shortages, supporting your team, and driving cost-saving efficiencies. After the initial investment in a robotic solution, ongoing operating expenses—such as routine maintenance and upkeep—are much lower than the expenses associated with adding headcount.

Improving labor process efficiency with the help of robots enables organizations to increase their bottom line by allowing staff to focus on more meaningful activities. With a collaborative workplace robot (or cobot), efficiency gains begin to grow—not by replacing your workforce, but by letting them concentrate their hours on higher-value activities.

For example, many organizations find that vacuuming takes up approximately 30% of total facility cleaning time. Automating this repetitive task can lead to a 25% boost in cleaning team efficiency. The existing cleaning staff can then relocate their time to higher-value services, such as disinfecting, deep cleaning, and polishing. This enhanced efficiency can prevent overtime costs to achieve the same results.

How Robots Impact Employee Hiring and Onboarding Costs

Robots can also help reduce the costs associated with finding and hiring new employees. Labor-strapped organizations find that cobots can help retain their existing workforce, thereby reducing hiring and onboarding expenses. Replacing an employee can cost from one-half to two times that employee's annual salary. As a result, having a solid retention strategy is crucial. Cobots offer several key benefits: they help reduce the monotony and strain of repetitive tasks and provide new opportunities for employees to grow their skills and develop professionally.

For example, many organizations are implementing robot manager roles that allow their teams to gain new technology skills, engaging in rewarding work. This approach has proven effective in manufacturing, where the presence of robots has created new, higher-paying jobs. These opportunities can help you retain talented workers, keeping them more engaged and productive.

How Robots Impact Customer Retention Costs

Beyond enhancing the employee experience, workplace robots also offer significant customer-facing advantages. For example, retail environments and hospitality venues see numerous benefits, including cost savings, from their robotic investment. Service robots can directly impact these organizations' customer retention and related costs.

The lifetime value of a customer is often calculated by the average amount a customer spends, their repeat purchase rate, and the cost of acquiring new customers. Research from Bain & Company and Harvard Business School indicates that a 5% increase in customer retention can boost profits by 25% to 95%.

Due to labor shortages impacting many industries, housekeeping and maintenance often suffer. A 2016 retail study by market research company Harris Interactive found that 93% of U.S. adults would not return to a retailer due to a lack of cleanliness.

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In the hospitality industry, a 2016 study by hotel booking site Trivago and P&G Professional found that 71% of guests expect above-average cleanliness ratings when choosing hotels. One bad experience can create a ripple effect of negative referrals, while customers reward above-average cleanliness with greater loyalty.

Robotic vacuums, food delivery robots, and other automated tools allow staff to do more with their time, creating a clean, welcoming environment that promotes customer satisfaction and drives repeat visits.

The Cost of Maintaining Robots

Although robots require routine maintenance, this is a relatively minor ongoing expense. For instance, maintenance tasks for autonomous robot vacuums include simple activities like replacing HEPA filters and dust containment bags.

Organizations find that the cost of robots can reduce the operational expense of cleaning through one-time capital expenditure. Purchasing a cleaning robot allows organizations to amortize the cost of the equipment over its lifetime. These savings can be reinvested or help offset rising labor costs for cleaning staff.

Not all organizations reap the full range of benefits. Many fail to leverage their robotic investment as the foundation of a new operational strategy. But when organizations develop a strategy to maximize their investment, they obtain a far greater return over time.

Business Case for Cleaning Machines

Large purchases can quickly encounter red tape, especially when acquiring a new floor cleaning machine for your store, restaurant, school, warehouse, or other space.

The best way to win the approval of stakeholders is with a well-articulated argument for why a mechanized mop, ride-on floor scrubber, or autonomous floor cleaning machine is the right choice for your organization. Here are five expert tips on how to explain the value of a floor cleaning machine to stakeholders and build your business case for new cleaning machines.

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