Steps to Reduce Data Entry Errors

Data entry roles have existed since the late 1800s. Since then, small businesses and large corporations alike have struggled to maintain data accuracy. While human error is understandable and somewhat unavoidable, they are also costly. In fact, there’s a rule for this. It’s called the 1-10-100 rule. 

Here’s what it means: It costs companies $1 to verify data after it’s entered into a company’s system, $10 to clean each data error afterward, and $100 if the error goes unnoticed.  

Since human-derived data entry errors are likely to occur at some point, you can expect your company to waste a lot of resources to fix data entry problems or deal with the consequences of unnoticed mistakes. With that in mind, you can take a few steps to reduce common data entry errors. They include: 

1. Avoid having an understaffed workforce.
2. Setting and modeling high standards for all employees.
3. Data validation.
4. Introducing process controls.
5. Creating streamlined processes.
6. Eliminating redundancies.
7. Utilizing technology to automate specific (if not all) data entry tasks.

Learn more about each step below. 

Step 1: Avoid Having An Understaffed Workforce

Estimates suggest the typical data entry error rate is between 1% and 4%. These numbers seem small and inconsequential. However, transcription errors, transposition errors, and unit/representation inconsistencies at these rates over a period of time can be incredibly costly to your business. 

These are just data entry error estimates for the typical employee. One can surmise the rate is exponentially higher for overworked employees in understaffed departments. With that in mind, keeping your data entry team adequately staffed, trained, and equipped with the right tools is in your best interest. 

Step 2: Set & Model High Standards For All Employees

Employees involved in the data entry process who are held to high standards are likelier to achieve incredible results. With that in mind, employers should set lofty yet achievable error rate goals. In doing so, you develop a new standard, build a strong culture, and reduce careless errors. 

One way to incentivize error-free data entry is to offer performance-based perks for outstanding work (i.e., more paid time off, gift cards, monetary raises, promotions, etc.). Generally, higher standards should go beyond the data entry team. They should permeate throughout the organization. 

Step 3: Data Validation 

Suppose an employee enters data accurately according to their source, but the source is invalid or of poor quality. In that case, it still counts as a data entry error, which means that sooner or later, your company will have to pay to correct it. One of the simplest methods to avoid this type of mistake is to check the accuracy and quality of a data source (i.e., data validation or data cleaning) before passing it to the data entry team. 

Step 4: Introduce Process Controls 

Depending on the potential impact of errors on a particular data set, it can be beneficial to introduce process controls for specific data entry tasks. Process controls can include having two people enter the same data (i.e., double key data entry) or hiring another employee to conduct a ‘second level check’ after the data is entered. These types of process controls can significantly reduce human error. However, hiring two people to do the same job can also be costly. 

Step 5: Utilize Technology to Automate Certain Tasks 

Perhaps one of the best methods to reduce data entry errors is to utilize technology to automate the data entry process. In doing so, you can eliminate human errors caused by inattention, boredom, fatigue, etc. By automating specific data entry tasks, you free up your human resources to tackle other pressing functions within the organization while eliminating most data entry errors. 

How Can Data Entry Errors Be Reduced? 

Reduced or eliminated data entry errors means more money to reinvest into the business, less confusion, and more profits. In addition to the steps listed above, you can do the following to help reduce data entry errors within your organization: 

• Conduct pre-validation checks.
• Cultivate a stress-free and distraction-free work environment for data entry employees.
• Hire employees with a personality profile that fits the role.
• Update your data collection software.
• Never stop optimizing the data entry process.
• Conduct regular training about the importance of accurate data and how it affects the company’s bottom line.

How Can Process Errors Be Reduced? 

Process errors can be just as devastating to a company’s bottom line as data entry errors. With that in mind, you can significantly reduce unnecessary process errors by taking the following steps: 

• Identify tasks that are prone to human error. 
• Consider automating certain tasks. 
• Reduce data set redundancies. 
• Conduct regular data audits to instill accountability among employees.
• Ensure that multiple qualified employees have access to datasets. 
• Encourage employees to speak out about process issues. 
• Take fast action as soon as you notice fixable process errors. 

GoCanvas – Reduce Manual Data Entry Tasks & Automate Your Forms 

Manually capturing and entering data is expensive, time-consuming, and in many cases, a misappropriation of employee talent. Automated GoCanvas data entry apps can help your company increase productivity by 20%, save thousands of dollars, and capture job site data in real-time so you can take immediate action to improve workplace efficiency. 
Our automated data entry forms have boundless integration possibilities, reduce paperwork, and eliminate data entry errors. Try GoCanvas automated data entry forms today for free – no credit card required.