Millenials and Accounts Payable
As millennials begin to move into workplace leadership roles giving them opportunities to implement change, it’s likely many organizations will see technological changes to basic business functions. This includes amends to AP departments, including an accounts payable workplace that’s even more efficient, and more technologically advanced than before.
Generation Y Changing the Workplace
Research from TheGlobalTreasurer.com has shown that by the year 2025 Generation Y will make up around 75% of the workforce. As they move from entry level positions to management positions they are quickly creating more automation in the workplace. This includes automation in accounts payable. This generation has grown up in an environment where results are nearly instantaneous due to the technological advances in communication. This expectation of instant results translates to a workplace environment where access to important information and accounts is also expected to be instantaneous. When you relate this to accounts payable, you can see how millennials are using electronic invoicing and other types of automation to always have account information at hand.
New Expectations in the Work Environment
When you grow up with the internet and other types of instant communication available, you learn to expect that same access when it comes to business information. No longer is it acceptable to only have important data when you’re physically at your workplace. This data should also be available through mobile means whenever it’s needed. According to the same study mentioned previously, millennials have grown up with a sense of flexibility by always having access to the latest in technology. Studies have shown that they expect this flexibility to be available in their professional organization. It’s now common for people to work from home, while traveling, or while commuting.
Benefits of AP Automation
Using accounts payable automation, benefits both the buyer and seller. These types of payments give an immediate invoice and allow for immediate payment on the account. Millennials are implementing E-invoicing in accounts payable at a high rate because they are accustomed to using electronic payments in many different aspects. Whether it’s using mobile pay or automatic deduction from an account, most are familiar with using immediate payment methods and they expect the convenience of using those methods to translate well into the workplace environment. Plus, moving to touch-less electronic payments can significantly reduce an organization’s costs related to accounts payable. The Global Treasurer expects the trends of electronic payments to continue to rise as generation y move into management positions and gain more control over business operations.
By utilizing ap automation and dynamic discounting, organizations save up to 2% of spending that would otherwise be used in the AP process. Further data shows that this generation are using their knowledge of technology to promote savings and growth from within the organization. They are an asset to the workplace, having the know-how including the motivation to help their organizations move forward with automation, electronic invoicing, and other technological advances.