For most corporates cost containment is high on the list of resolutions for 2017. An immediate reaction to cost saving is to cut back on expenses, so hiring an expert to help you with that may seem a little counterintuitive.
Let’s face it – when it comes to managing those all-important, uncontrollable travel and entertainment (T&E) expenses, you may find that spending a little money may save you a lot.
Here’s how a good travel management company (TMC) can make a considerable and positive impact on your bottom line.
- It saves you time and money
Consider the time it takes you and your employees to make travel arrangements, reconcile travel expenditures and negotiate supplier rates.
A TMC can take this pressure off by negotiating preferred-supplier rates on your behalf, saving you money. According to a recent study by the Global Business Travel Alliance, the services of a good TMC can save a company between 10% and 20% on its travel and entertainment budget.
Take a minute and think about how much your T&E budget is and what is could mean for your cost-saving efforts.
- It makes employees toe the line
It is no secret that if a company wants to reduce travel costs, employees must keep to the T&E policy. It’s crucial that employees use the company’s preferred suppliers and stick to spending thresholds.
Do your employees know how much they may spend on a business trip? Are they aware of the airfare classes they may book and the price threshold that applies? More importantly – do you have the time to police and manage this among your employees?
- It aligns company policy with company culture
Chances are your corporate culture is one of the reasons why your top employees chose to work at your company. Does your T&E policy reflect your company culture?
If you have a young and vibey culture, it may be a good idea to allow your employees to fly low cost but spend a bit more on restaurant expenses. Have you integrated the sharing economy into your T&E policy? Do you know what the consequences are in terms of your duty of care? A good TMC will help you to bring company policy and company culture together.
- It increases productivity
If you’ve spent hours trawling the Internet for a killer travel deal, you’ll also know that trying to make your own travel arrangements can have quite an impact on your productivity at the office. Employees can easily lose half a day of productive work by sorting out authorisations, booking travel tickets, and reconciling expenses. How much is it really costing you?
- It ensures accurate expense reporting
Struggling to keep track of all the receipts and notes?
Having a TMC handle your expenses can help to save time and money and increase traveller convenience. The TMC that oversees your expenses will also be able to provide valuable data for your company.