Corporate Travel Management is Your Secret Sauce to Increase Employee Productivity
Market research by IDC revealed that companies lose 20 to 30 percent in revenue every year due to inefficiencies. The inefficiencies can result from the smallest process to the one extending to the operations of the organization. When it comes to corporate travel management, 48% of the Indian companies lack a system to detect travel & expense fraud and a lot of them rely on manual operations to manage their employees’ travel needs.
Paul J. Meyer refused to call productivity an accident. He instead defined it as the result of a commitment to excellence, intelligent planning, and focused effort. A lot of organizations today fail to imbibe accountability in employees for the hours they put in redundant tasks. But a part of the responsibility lies with the organizations too. Management often, put their employees in the spotlight without considering the issue in entirety.
In this blog, we will be exploring the root cause of the inefficiencies in the process followed for corporate travel management. We will also discuss the resulting loss of opportunities to grow revenue and gain a competitive advantage.
Thanks to manual mapping, paper receipt submissions, and poor management of the Finance department to track and detect frauds, Indian companies are losing revenue. Their complacent attitude in identifying the bottlenecks is making them the gatekeepers of innovation.
The far-reaching effect of such ignorance is a significant loss in finances. According to the Association of Certified Fraud Examiners’ report (2010), a company, on average, loses five percent of its revenue every year to fraud and abuse. 15 percent of this loss comes from bad expense reports.
Manual Booking and Expensing
Manual booking and expensing are two areas of concern that must be addressed. Many Indian organizations lack a centralized system to keep a track of bookings and the amount due in one place.
Instead, an employee first requests the travel admin to book a cab for them and upon approval, the travel admin coordinates with multiple travel operators via call or email to find the right travel operator. Once the cab is allotted, yet another series of follow-up begins for reimbursement and claim settlement.
The redundant process of chasing and coordinating with departments for booking and reimbursement hampers employees’ productivity to a great extent and contributes to their impression of the company.
Poor Data Visibility and Accuracy
Manual processes do not just delay reimbursements but also affect the complete corporate travel value chain. Paper receipts that employees often end up losing, create issues for the Finance Department. They do not have the complete information to present accurate data and work towards forecasting for the future.
The lack of automated systems with capabilities including but not limited to downloading data in different formats from one place forces employees to comply with the manual methods. They have to manually fill the spreadsheet and cross-check the claims with their company policy. Such dated processes are not just exhausting but also error-prone.
Complex Processes Hinder Expansion
The size of an organization is directly proportional to the complexity of processes. And, there is a misconception that small organization cannot make the optimal use of the Corporate Travel Management Solutions right from the go. Such a shortsighted view forces departments to rely on manual processes for managing booking requests, reimbursement, and travel data.
This later becomes a bottleneck when the companies plan to expand their structure. There is always a dearth of data to study existing travel patterns and build an action plan to fulfill future employees’ travel needs.
A Solution in Consideration: Process Upgradation through Digitization
While digitization is gaining acceptance among individuals, organizations have lagged behind. The advent of technology allows travelers to take control of their travel needs as per their time and convenience. A lot of organizations have still not adopted the tools that might help them make bookings on behalf of their employees. Such tools also enable admins to plan impromptu travel requests and monitor spending against the travel policy.
The Secret to Increasing the Key Productivity
The key to productivity, therefore, lies, in providing teams with a solution, preferably a centralized solution like SaaS. The solution must have the ability to both raise the booking request and control the process in real-time. Travel admins can use this solution to plan the trip as per employee’s time and their designation.
The controller gets to see the amount spent on a kilometer basis. This helps them eliminate the chances of fraud. The employees, Travel Admins, and drivers can use the platform to submit receipts at one place to bypass the need for storing trip sheets or paper invoices.
It has been observed that an early investment into paperless systems averages a $30 of return on every $1 spent. Electronic methods have proved to guarantee efficiency whereas manual processes have proven to increase the cost.
Beep Corporate empowers organizations to make a transition to paperless processes. It allows admins, TOs, employees, and managers to use a single platform to streamline the process of booking, expensing, ROC negotiation and reporting. Our solution enables an organization to set ride eligibility criteria for the employees while booking dedicated cabs for senior management and delegates. We help you take a DIY approach to employee travel through a portal and an app.