Eliminating Operational Friction: The Key to Cost Savings and a Stronger Bottom Line

Facility managers know the struggle: budgets are tighter, work orders are piling up, and compliance demands are increasing. Yet, many facility teams are still bogged down by manual processes, outdated tracking methods, and inefficiencies that create operational friction and hidden costs that eat away at productivity and the bottom line.

Facility management organizations typically have average profit margins of 5-6%, and controlling and reducing overhead drives profits to the bottom line. People are one of the most significant expenses in organizations, and improving efficiency starts with managing people and their performance more effectively.

The solution? Automating and streamlining facility operations. By eliminating bottlenecks, adopting intelligent automation, implementing a preventative maintenance program, fully utilizing work order solutions, and leveraging IoT solutions, facility managers can significantly reduce overhead costs, increase efficiency, and enhance service delivery.

The Hidden Cost of Operational Friction

Operational friction in facility management comes in many forms:

• Manual time and attendance tracking—leading to errors, inflated, missing, or fictitious labor costs, and wasted time chasing down staff.
• Missed or delayed maintenance tasks—resulting in costly reactive repairs and compliance risks.
• Inefficient work order management - leads to delays, lost productivity, and unnecessary follow-ups.
• Poor asset visibility—leading to underutilization, redundant purchases, and premature equipment failures.

According to the State of Facilities Management Technology Report (2024), over 55% of facility managers reported an increase in work order volume this year, while 42% admitted to being understaffed.

These challenges put immense pressure on teams to do more with less—but without the right tools, it’s nearly impossible.

How Facility Automation Reduces Overhead Costs

The traditional, manual approach to facility management is expensive and inefficient. Let’s look at three ways automation can drive cost savings and operational Efficiency:

1. Eliminating Human Error in Time and Attendance Tracking

Manual timekeeping is prone to errors, manipulation, and inefficiencies, frequently resulting in payroll inaccuracies and unnecessary administrative tasks.

Many solutions offer mobile applications that track time and attendance, but they create challenges with lower-cost resources, language barriers, and a lack of connectivity across buildings.

• Impact on Costs: Time-tracking errors result in millions of dollars in annual costs due to overpayments and disputes.
• Solution: Contactless FM automates time and attendance verification, eliminating errors and saving facility managers hours per week previously spent on corrections.
• Bottom-Line Benefit: Eliminating human error means lower labor costs and improved workforce efficiency.

2. Automating Recurring Facility Tasks for Better Performance

Facility teams juggle multiple responsibilities, including janitorial, security, maintenance, and fire inspections, among others. When tasks are manually reported, errors and inconsistencies are inevitable.

• Impact on Costs: Delayed or missed tasks result in expensive reactive repairs and potential regulatory penalties.
• Solution: Contactless FM provides real-time proof of task completion, automating routine inspections, cleanings, and equipment maintenance.
• Bottom-Line Benefit: Proactive maintenance reduces repair costs by up to 18% while extending the life ​of assets.

3. Gaining Real-Time Insights to Prevent Costly Mistakes

Without clear visibility, facility managers rely on after-the-fact reporting, making it challenging to address inefficiencies before they escalate.

• Impact on Costs: Reactive facility management leads to overspending—whether it’s on emergency repairs, redundant inventory, or excessive labor hours.
• Solution: Contactless FM provides instant reports on what happened—and what didn’t—across buildings, allowing facility managers to pinpoint and correct inefficiencies before they impact operations.
• Bottom-Line Benefit: Automated reporting reduces administrative workload, improves compliance, and prevents unnecessary expenditures.

Operational Efficiency = Higher Profitability

Let’s talk about bottom-line impact. Facility management teams that eliminate friction and automate key processes experience:

• Reduction in overhead costs due to lower administrative workload and improved compliance​.
• Faster work order resolution, reducing downtime and ensuring services are delivered efficiently.
• Better asset management, preventing unnecessary capital expenditures, and extending equipment lifespan.
• Higher employee productivity, as staff focus on meaningful tasks instead of repetitive administrative work.

At a time when budgets are shrinking, and service demands are rising, facility managers can’t afford to waste resources on inefficient processes. Adopting automation and proof-of-presence technology is no longer optional; it’s essential.

Why Contactless FM is the Easy Entry to Proptech

While many innovative building technologies require significant upfront investments and complex integrations, Contactless FM is designed for quick and easy adoption.

• No app-based check-ins or manual reporting—just real-time proof of presence, reducing overhead costs, management oversight, and operational friction.
• Seamlessly integrates with existing FM systems to enhance visibility and accountability.
• Improve service quality within the first month of implementation.

Contactless FM is an immediate solution to increase Efficiency, accountability, and cost savings for property management companies that provide their maintenance workforce.

Final Thought: The Future of FM is Friction-Free

The facility management industry is evolving. The data is precise: manual, reactive processes create inefficiencies that cost businesses money. Facility managers who adopt automation, data-driven decision-making, and proof-of-presence solutions will gain a competitive advantage, delivering higher-quality service at a lower cost.

The real question is: Are you ready to eliminate operational friction and take control of your bottom line?

Let’s discuss how Contactless FM can streamline your facility operations today.