taking control of employee spending business travel and expense management trends 2016
TRANSCRIPT
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Taking Control of Employee Spending:Business Travel and Expense Management Trends 2016
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Housekeeping• Handouts
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Learning Objectives
• Budgets and benchmark spending by category for annual T&E expenses
• The top expense management pressures, pain points and areas of opportunity
• Average estimated processing costs for an individual expense report
• Systems and processes currently used to manage expense reporting
• Timelines and tactics for achieving a return on investment with a new system
Attending this event will help you understand:
3
Mark BrousseauPresident and Owner
Brousseau & Associates
Today’s Presenter
Featured Speakers
Josh CaseyData and Content Manager
Certify
5
Teri TocashAccounts Payable Manager
CBC Companies
T&E Spending andBusiness Travel Trends
U.S. Business Travel Breakdown
74%under 250 miles
from home office
48%involves a
personal vehicle
69%do not require
air travel
Global Business Travel Association 2015
U.S. Travel Association 2015
Of the 1.3 million domestic business trips made daily:
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Base Costs Per Trip
Travel Leaders Corporate 2015
Average business trip cost for air, hotel and car rental:
INTERNATIONAL DOMESTIC
$2,502 $1,002
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Business Investment in T&E
8-12%total annual budget for T&E expenses1
1. Aberdeen Group 20152. Global Business Travel Association 2015
U.S. business travel spending in 2015 topped an estimated $310b, up 6% from 20142
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1. Meals 19%
2. Airfare 17%
3. Misc. 17%
4. Lodging 14%
5. Gas 11%
6. Cell phone 5%
7. Car rental 5%
8. Groceries 5%
9. Supplies 5%
10. Taxi 3%
11. Shipping 2%
12. Tolls 1%
13. Parking 1%
How the Expense Budget is Spent
Certify SpendSmart Report, Q4 2015
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$98.75DAILYMEAL COST
2016
1. Meals 19%
2. Airfare 17%
3. Misc. 17%
4. Lodging 14%
5. Gas 11%
6. Cell phone 5%
7. Car rental 5%
8. Groceries 5%
9. Supplies 5%
10. Taxi 3%
11. Shipping 2%
12. Tolls 1%
13. Parking 1%
How the Expense Budget is Spent
Certify SpendSmart Report, Q4 2015
2016 Business Travel News Corporate Travel Index
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Category 2014 2015 Difference
Gas $40.41 $30.32 –24.96%
Airfare $345.21 $274.00 –20.62%
Lodging $213.90 $223.45 +4.64%
Car Rental $193.58 $186.45 –3.68%
Cell Phone $89.30 $92.24 +3.29%
Meals $25.67 $26.06 +1.52%
Parking $32.70 $32.23 –1.43%
Taxi $31.81 $31.82 +0.03%
Benchmark Spending by Category
Certify SpendSmart Report, Q4 2015
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How Travelers Spend the Company Dime
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Most expensed and highest rated for dining:
Certify SpendSmart Report, Q1 2016
How Travelers Spend the Company Dime
14
Most expensed and highest rated for hotel:
Certify SpendSmart Report, Q1 2016
How Travelers Spend the Company Dime
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Most expensed and highest rated for air carrier:
Certify SpendSmart Report, Q1 2016
97%of business travelers carry at
least one mobile device
Mobile is Made for Travel
Expedia/Egencia Mobile Index 2015
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Ground Transportation Trends
Certify SpendSmart Report 2014 - 2016
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Ground Transportation Trends
+1890% ride-hailing receipts in 2 years
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Certify SpendSmart Report 2014 - 2016
T&E spending is the 2nd most difficult operating
expense to control
Forrester Research 2015
Polling Question 1
a) Paper-based/spreadsheetsb) ERP system (Oracle, Microsoft Dynamics, etc.)c) Web-based expense software (Certify, Concur, etc.)d) Not applicable
How does your organization currently manage T&E expense reporting?
Methods for Managing T&E Reporting
Consistent mix of expense management systems:
Certify Annual Travel & Expense Management Survey 2013-2016
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Web-based solution (Concur, IBM, etc.)Microsoft Excel/spreadsheetsPen and paperHomegrown solutionERP/accounting package (Oracle, SAP, etc.)
T&E Systems by Company Size
MANUAL SYSTEMS: 70% small businesses, 26% enterprise
22%
55%
10%
5%8%
37%
37%
9%
4%
13%
46%
16%
4%
6%
28%
SMALLBUSINESS
MID-SIZEBUSINESS ENTERPRISE
Certify Annual Travel & Expense Management Survey 2016
22
Leading frustrations for T&E program administrators:
Top Expense Management Pain Points
50% employees
losing receipts
45% employee’s failureto submit reports
on time
38% time it takes to
reconcile, reviewand approve
30% reviewing for
policy violations
28% errors onthe report
Certify Annual Travel & Expense Management Survey 2016
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Reimburse employees faster
Improve employee compliance rates to corporate policy
Gain reporting and analytics around T&E spend
Provide system accessibly from anywhere (online, mobile)
Simplify process for employees and managers
25%
28%
32%
40%
66%
Driving Force Behind the Switch
Certify Annual Travel & Expense Management Survey 2016
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Must-Have Expense Reporting Features
Automation: Expense report creation, workflow process and approvals, direct credit card feeds
Mobile Applications: Smartphone-enabled receipt image capture, mobile report creation and approval, and policy tools
Compliance: Duplicate receipts/expenses, category spending limits, automatic notification of violations
Integration: Accounting software, general ledger, HRIS, CRM, ERP, ACH direct deposit
Reporting: Complete visibility into process and spending by category, department, employee
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Certify Annual Travel & Expense Management Survey 2016
Best-in-Class T&E Strategies
Aberdeen Group 2015
Expen
se reports
audited re
gular
ly
Automatic li
nkage
betwee
n expen
se mgt. a
nd back-en
d syste
ms
Online t
ravel b
ooking syste
m
Commercial ca
rd syste
m/program
End-to
-end ex
pense
mgt. solution
88%
58%
87% 77% 68%63%
34%
63%50%
35%
Best-in-Class Industry Average
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Best-in-class expense management practices drive 87% compliance or higher with company T&E policy
Aberdeen Group 2015
Polling Question 2
a) We have no formal T&E policy b) Manual review processc) Automated system that flags violationsd) Policy is not enforced
How does your organization enforce compliance with T&E policies?
73%
T&E Policy Compliance
85%of all companies report
having a writtenT&E policy in place
of those companies are manually reviewing
for policy violations
Manual policy review is inefficient, prone to error and fraud
Certify Annual Travel & Expense Management Survey 2016
29
T&E policy is not enforced Employee is responsible Manager manually review each expense
Manager manually review, checking only high value
expenses
T&E system automatically flags out-of-policy violations
6%
31%
42%
20%
26%
Policy Enforcement Practices
Certify Annual Travel & Expense Management Survey 2016
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53% of companies on a web-based system
Systems and data integration
Mobility/mobile access
Travel booking
Transparency/visibility into reporting data
Expense management process
9%
10%
11%
21%
37%
Key Areas for Improvement
Certify Annual Travel & Expense Management Survey 2016
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A COMBINATION OF ABOVE
A TRAVEL AGENCY
CORPORATE TRAVEL SOFTWARE
ONLINE TRAVEL SITES
0% 10% 20% 30% 40% 50% 60%
43%
22%
15%
20%
29%
15%
5%
51%
Manual Web-based
Certify Annual Travel & Expense Management Survey 2016
Travel Booking Technologies
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Travel Booking Controls
Pre-Trip Approval:Requires manager authorization prior to booking; configurable by employee,
policy specifics, etc.
Lowest Logical Fare:Automatically identifies best available rates for proposed itinerary (and only
best available rates)
$
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Companies that track/apply unused airline tickets can save 5-8%
of total annual travel budget
2015 GBTA Ancillary Fee Handbook
Polling Question 3
a) Under $7 per reportb) $10−$20 per reportc) $25 or more per reportd) We do not track these costs
What is the average cost to process a single expense report at your organization?
Cost to Process a Single Expense Report
$6.85fully automated
$17.31 semi-automated
$26.63 manual process
PayStream Advisors 2015
28%
19%
5%
48%
Under $7 per report $10−$20 per report$25 or more per report We do not track these costs
Certify Annual Travel & Expense Management Survey 2016
36
Automation Drives ROI
Certify Annual Travel & Expense Management Survey 2016
Businesses of every size are quickly realizing ROI:
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Impr
oved
effic
iency
/expen
se re
portin
g pro
cess
Reducti
on in
proce
ssing
costs
(less
paper
, pos
tage,
stora
ge etc.
)
Mobile
acces
sibilit
y
Increas
ed emplo
yee p
rodu
ctivit
y
Elimina
tion of
paymen
t for d
uplica
te ex
pens
es
Reducti
on in
over
head
/staffin
g requ
iremen
ts
58%53%
33%26% 22% 22%
How ROI is Achieved
What are the ways you’ve achieved ROI on your automated expense management system?
Certify Annual Travel & Expense Management Survey 2016
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Automation Gets Results
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Certify Customer Case Study Results 2015
Questions?
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