Business travel is often one of the first budgets to come under cost-cutting scrutiny. But is it really expendable? HRM considers new research into the value of face-to-face meetings
As the economic recession deepens, businesses are looking at every line to prune their cost structures. Corporate travel is one area constantly under examination but experts warn you can't put a price on face-to-face time.
Richard Arvey, Head of the Department of Management and Organisation, National University of Singapore, says meetings that happen "live" in the same place and time, produce more effective business results. In a recent academic paper, he advises organisations to cut these costs at their own peril. His argument covers five salient points:
- Business meetings are strong vehicles for participants to learn the culture, norms and how things operate within an organisation;
- Business meetings allow members to communicate in non-verbal behavioural styles - not captured by most technology-assisted interactions;
- Face-to-face business meetings develop more transparency and trust among participants;
- Business meetings are considered more effective when persuasion is required or when there is a range of complex tasks or decisions on the agenda;
- Formal meetings also allow for informal discussions outside the boardroom. The interaction that takes place during the coffee break or on the way to the airport can often be just as important as what takes place while the minutes are being taken.
This doesn't mean businesses should not cut any costs whatsoever. But Arvey suggests employers should take care not to underestimate the value of a successful meeting. The overall value of a business meeting is a function of costs and outcomes, he says. Anything that lowers the costs, will increase their ultimate utility. Anything that increases the efficiency of business meetings will also increase that payoff.
Finding the right balance of face-to-face meetings and long-distance communications is key especially in times that pressure company budgets, Arvey says."Proper pre-meeting components, organisation, and follow-up will help improve the efficacy of face-to-face business meetings and improve the cost-benefit ratio associated with them."