The State of Travel and Entertainment Expense Management
New Study Finds That Enterprises Are Beginning to Look at Expense Management Strategically
Business travel, for years, has often been considered a "sunk cost" by enterprises around the globe. However, in the midst of economic recovery, organizations are beginning to view their expense management programs and processes in a more strategic light, according to a new research study published by Aberdeen, a Harte-Hanks Company (NYSE: HHS).
"The State of Travel and Entertainment" research report, which gauged the programs, processes, and performance of nearly 175 enterprises, found that organizations perceive expense management to be a mid-level strategic function that can drive moderate value to the overall enterprise. This is a sharp, fresh view of thinking from the decades spent managing expenses as an unavoidable cost of conducting business.
"T&E expenses account for nearly $24 million a year for the average enterprise," said Christopher Dwyer, research analyst, Aberdeen. "With enterprises reinstating travel budgets and conducting business on a global scale, there is heightened organizational awareness to the benefits of controlling spending on this category and managing the complexities of T&E expenses in a strategic manner."
The new study found that over half (53%) of organizations currently place a high priority on expense management in current economic conditions. "The State of T&E Expense Management" also highlighted the performance and strategies of performance-leading enterprises, that have achieved a 31% higher rate of policy compliance than all other enterprises and have generated an 80% reduction in expense-processing costs. These top-performers are:
