The Secret to Increase Employee Productivity
Paul J. Meyer once said that productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort. Taking the last two elements of his quotes, a lot of organizations today fail to hold their employees accountable for the hours they put in tasks that seem redundant. A percentage of responsibility also lies with the organizations that put their employees in the spotlight without nipping the problem in the bud.
According to market research firm IDC, companies lose 20 to 30 percent in revenue every year due to inefficiencies. The inefficiencies can result from smallest process to the one extending to the operations of the organization, affecting all the employees equally. In this blog, we will be discussing the inefficiencies in corporate travel management and how these make it difficult for organizations to gain a competitive advantage.
In an article published by The Economics Times, dated October 15, 2018, it was revealed that 48% of the Indian companies lack a system to detect travel & expense fraud. Moreover, 33% of the companies don’t have GST Compliant solution when it comes to corporate travel management.
Thanks to manual mapping, paper receipt submissions, and poor management of the Finance department to track and detect frauds, Indian companies are losing revenue. The issue does not merely lie on organizations’reliance on the manual processes but in the attitude of complacency that makes them the gatekeepers to innovation. In a bid to make do with the existing processes, the department heads fail to acknowledge the bottlenecks within the system. The far reaching effect of such ignorance can also result into huge financial losses for an organization. According to the Association of Certified Fraud Examiners in a 2010 report, the average company loses five percent of its revenue every year to fraud and abuse, some 15 percent of which comes from bad expense reports.
Manual booking and expensing are two areas of concern that must be addressed. Indian organizations today do not have a centralized booking and accounting system that might help them keep a track of bookings and amount due at one place. Instead, following the general practice, an employee requests the travel admin to book a cab for them and if the request is approved, the travel admin has to coordinate with multiple travel operators via call or email to find the right travel operator who can take up the booking request. Once the cab is allotted, yet another series of chase game begins as employee tries to raise the request for reimbursements. Not only does the employee have to fill a detailed reimbursement form (accompanied with the trip receipts), they also have to repeat the entire process again if their request is not approved.
The redundant process of chasing travel admins and finance departments for reimbursements and the unnecessary dependence on the former to know the status of the booking when it could have been checked via an app hampers employees’ productivity to a great extent. The sheer headache of being in the know that one will have to repeat the process every day only contributes to the negative impression the resource forms of their organization.
The advent of technology will allow travelers to take control of their needs and reach out to the service providers as and when they require the services which in turn will make the corporate process dated. Quite contrary to the expectation, organizations have still not adopted the booking tools that might help them not only make bookings on behalf of their employees easier but also help them track the number of requests, plan travel /impromptu request from the senior management, and monitor the spending of an employee as per the travel policy.
The key to productivity therefore lies, in providing teams with a solution, preferably a centralized solution like SaaS that provides them with the capability of not only raising the booking request but also controlling the process in “real time”. The solution will allow the Travel Admins in planning employee travel not only as per their time but also as per their designation. It will also allow the controller to view the amount spent on the basis of kilometers traveled to eliminate the chances of fraud. In terms of accounting, the solution will help employees, Travel admins, as well as the drivers to submit the receipts on a single platform to bypass the need for signatures over trip sheets and of storing paper invoices till the day of reimbursement.
Paperless AP departments reduce, on an average, 62 percent of labor time spent on receiving, organizing and inputting data from paper invoices. Initial investments into paperless account-management systems average a $30 rate of return on every $1 spent. What’s more, mix-system record keeping — like AP departments that try to fuse both paper and electronic methods — spend $12.44 to process each invoice and are considered “bottom performing” concerning industry efficiency. “Top performers” spend only $4.98 processing invoices — and are mostly electronic.
Beep Corporate is a travel management solution that connects corporates with their travel operators by providing the former a freedom of choice and transparency into corporate travel. By allowing TAs to view multiple ROCs within a single platform and a variety of cars to choose from, Beep provides the organization with a cost effective solution and seamless system for cab booking. The employees too are provided with an option to transition from manual process to “DIY” approach by booking the cab via an app.