Technology Helping To Cut Travel Budgets

While the business trip is a long way from becoming an endangered species, a new survey reflects a trend away from business travel.

The survey conducted for Accountemps, a specialized temporary staffing service, found that nearly two-thirds — 63 percent — of executives polled believe that technology is having an impact on travel.

Eleven percent of those responding to the survey said technology has significantly decreased the amount of travel, while another 52 percent said it had somewhat reduced travel.

One-quarter reported no change in travel as the result of technological innovations; 8 percent said travel had increased somewhat, and 3 percent said it had increased significantly. The final 1 percent either didn’t know or didn’t answer.

Even though e-mail, videoconferences and online meetings have lessened the need for business travel, face-to-face communication remains preferable in some cases, said Max Messmer, Accountemps chairman.

“In many situations,” he said, “personal interaction remains the most effective way to reach consensus on a business issue. Even the most advanced communication tools are no substitute for a solid handshake.”

More for less

Longer working hours have fueled living wage campaigns in several states.

“In 1998, for example, poor families with children worked an average of 1,213 hours per year, about 140 hours more than in 1989,” reports the Economic Policy Institute, a nonprofit think tank in Washington, D.C.

And, even after four increases in the federal minimum wage in the 1990s, its value, when adjusted for inflation, is more than 20 percent lower this year than it was in 1979, the institute says.

Turnover costs

The U.S. Department of Labor estimates the cost of replacing an employee is 30 percent of that person’s annual earnings. In the case of professionals and managers, that total is nearly $108,000, according to a study by Development Dimensions International.

Here’s where the money goes:

* $400 — administrative costs to process all candidates.

* $720 — interview costs.

* $1,250 — candidate travel costs.

* $4,000 — severance pay.

* $6,000 — advertising.

* $15,600 — training.

* $30,000 — lost opportunities, hidden costs.

* $50,000 — relocation costs.