In an era where efficiency is paramount, UK workers are grappling with a significant challenge: low productivity. This inefficiency comes at a critical juncture as the UK economy continues to underperform: Productivity rates continue to lag, remaining below pre-pandemic levels. ONS data on employment shows continued volatility, and the ongoing weakening of the labour market, suggests that wage growth may face significant challenges in maintaining upward momentum throughout 2025.  All in all, it paints a picture of businesses unable to break out to growth. On an individual level, workers also potentially spend an additional eight hours on average to process agreements – compared to their global counterparts.

The hidden cost of poor agreement management 

The implications of this inefficiency are highlighted in new research from Deloitte and Docusign’s Digital Agreement Management Study, 2024. The study uncovers the biggest pain points and surprising risks associated with poor agreement management, revealing a stark reality for businesses worldwide.

One of the primary findings is that companies with disconnected agreement management workflows lose twice as many deals due to poor processes. Additionally, 62 percent of companies struggle to identify necessary languages or clauses promptly, significantly delaying contract creation. This inefficiency translates into a staggering loss of global economic value, estimated at up to £1.5 trillion annually.

At 57%, more than half of organisations report missing out on their preferred talent due to protracted agreement processes, highlighting the critical impact of inefficient hiring workflows. Compounding this issue, 69% of companies are experiencing increased burnout and attrition among their HR teams, who are overwhelmed by the additional burdens these delays impose. 

The study indicates that this issue affects businesses of all sizes. However, the challenge is particularly acute across Europe and the UK, where it takes an additional eight hours on average to process agreements compared to other global regions. Customers in EMEA report the longest time spent in agreement analysis, likely due to the complexities of multi-jurisdiction and multilingual negotiations, coupled with largely manual, undigitised processes.

The impact of these challenges spans across every business function, from sales to HR. Managing contracts with existing manual processes and vital information trapped in static, flat files significantly drains productivity, performance, and profitability. Analysing the pain points, risks, and value drivers around agreement management, poor management practices and systems destroy value unevenly across business functions, with a profoundly negative impact on customer and partner relationships.

The root causes: disconnected workflows

Disconnected workflows are identified as the root cause of poor agreement management. On average, companies spend an extra 18% of their time on agreements, resulting in over 55 billion hours wasted globally per year. An agreement can undergo over 15 handoffs internally before any counterparty negotiation even begins. This inefficiency results in uneven value destruction across business functions. Customer-facing functions like sales and marketing contribute 40% of the global value loss due to missed revenue opportunities from delayed deals. In contrast, support functions represent 60% – the majority – of the value loss due to time wastage and operating costs.

The toll on customer and partner relationships

The repercussions of poor agreement management processes are overwhelmingly negative for customer and partner relationships. Nearly half (48%) of businesses reported significant deterioration in customer relationships due to agreement delays, while 66% identified inefficient agreement workflows as a key driver for negative customer satisfaction. As a result, two out of five companies are actively seeking solutions with smarter capabilities. It can be inferred that more active management of contracts and processes within HR would serve to reduce pain points and find opportunities for reengagement and revitalisation with personnel agreements too.

Critical pain points in the agreement journey 

Companies face critical pain points at every stage of the agreement journey. According to the study, 62% of respondents struggle to locate and access previously approved contracts for reference, and 52% have to wait for identity and notary verification. Additionally, 54% must manually track and analyse key terms, deadlines, renewal dates, and enforcement needs, further reducing efficiency.

The path forward: increasing digital maturity

While digital transformation has been widely embraced, there’s a maturity curve to the process. Digital maturity levels refer to the level of integration and adaptability the organisation can offer. The UK job market cannot afford to indulge any avoidable inefficiencies in their processes. As companies navigate the challenge of the ‘agreement trap’, it is imperative to adopt smarter, more integrated solutions, to streamline agreement processes, enhance productivity, and ultimately improve customer satisfaction and business performance. The path forward involves embracing the right tools to unlock the true value of efficient agreement management.