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online_voting_savings Can an online voting system save $20 000? privote

Can an online voting system save you $20 000?

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For the impatient - average calculations can be found at the end of the article. However, we encourage you to read it in its entirety.

We are all fed up with remote meetings

That's true. The COVID pandemic forced us to work remotely and it put not only our professional life, but also our personal relationships to a difficult test. Because of it, however, we learned to use tools for remote work and communication. The pandemic will pass eventually, but our skills and new solutions will remain. It is obvious that remote communication will never replace personal contact, but it may be worthwhile to use new competences in a sensible way, especially in areas where they can provide significant financial savings.

Are business trips profitable?

First, some interesting statistics.

Profit for the company

Percentage of managers convinced that business trips are necessary for the company's development

Business travel

Percentage of airlines passengers travelling for business purposes

Profit

Portion of airlines' profit derived from business passengers
Every business trip generates related costs. These are not only direct expenses, but also organizational costs, which are often not taken into account.
1
Preparation of each business trip (searching for hotels and transport, booking, reporting expenses) takes an average of 12 hours.
2
The average cost of one day's travel of a single employee amounts to $ 1,425.
3
With an average of 9 trips per year, preparations and settlement take 108 hours and cost $ 12,825 per employee.
What is the cost breakdown of an average business trip?
Accommodation
Transport costs
Meals
Car rental
34 %
27 %
20 %
19 %

The pandemic had a huge impact on the collapse of the travel market. In 2020, the total value of the global travel market decreased by as much as 61 %, dropping to 504 billion USD (data from April 2021). It is estimated that the value of this market will return to its pre-pandemic level and regain its annual revenue (reduced by 830 billion USD) no sooner than in 2027.

What percentage of your company's business trips do you think will be replaced by videoconferences in 2021?
Image
Changes in our inclination to use remote communication tools are likely to take hold. The available data shows a strong tendency to replace travels with online meetings. The survey shows that 55 % of respondents believe that more than 26 % of business trips will be replaced by videoconferencing. As many as 25 % of respondents believe that this amount will extend 50 %.
Zmiany w zakresie naszej skłonności do używania narzędzi zdalnej komunikacji zapewne się ugruntują. Z dostępnych danych widać dużą skłonność do zastąpienia podróży ich zdalnym odpowiednikiem. Z badania wynika, że 55 % respondentów jest przekonana, że ponad 26 % podróży służbowych zostanie zastąpiona przez wideokonferencje. Aż 25 % respondentów jest zdania, że wskażnik ten wyniesie ponad 50 %.
The objectives of business trips and the trends expected in the coming years appear quite interesting as well.
Average share of business trip expenses, sorted by purpose (data from 2019, with estimates for 2021).
  • year 2019
  • year 2021
Image

The chart above clearly shows that companies do not intend to save on business trips in the area of ​​sales, customer acquisition and after-sales assistance (service and training).
This trend is also confirmed by the following conclusion on the profitability of investing in travels:

For every dollar spent [on business travels], companies commonly see a  $ 2.90 profit increase and a $ 9.50 $ rise in revenue.

The biggest reductions will affect internal company meetings (6%). This area also includes all kinds of sittings and deliberations, as well as formal meetings of company management boards, supervisory boards or general meetings of shareholders. It is worthwhile to adapt to global trends, because it can be assumed that our competitors are going to reduce their costs in this way.

The privote system enables a significant reduction of costs related to traditional voting sessions by offering a legally valid remote counterpart. As a full-fledged videoconferencing tool, it can also be used for standard online meetings. In this respect, it even has some advantages over popular videoconferencing solutions (e.g. shared interactive whiteboard or the option to work in subgroups).

Can you vote online and save $ 20 000?

It's simple. Just make use of online voting.
Instead of a traditional General Meeting of Shareholders, it is possible to organise its remote counterpart.
Let's try to calculate the cost of voters' participation in a conventional meeting.
We will analyse two variants: minimal and optimal.
Both variants assume:

  • travelling by car or by plane,
  • one day spent on a round trip,
  • overnight stay at a hotel.
See the tooltips in the "Description" column for additional explanations.

OpisMinimal versionOptimal version
by carby planeby carby plane
Cost of one participant's working dayFor the minimal version, we assume a annual gross salary of $ 51 ths., and for the optimal version - $ 82 ths.140140270270
Cost of travelling by carWe assumed a distance of 200 miles and 58 cents per mile driven for business use
 
120260
Cost of travelling by planeAverage domestic fly cost in standard and businsess class.360480
Cost of hotel accommodation180180510510
Cost of meals5050120120
Cost of organising the trip and settling expensesCost of 4 hours of work of an employee with average gross salary.70707070
Total per person$ 560$ 800$ 1 230$ 1 450

Now let's assume a fairly typical situation.
20 participants are to partake in the sitting. Four of them will travel by plane and the remaining sixteen will travel by car.

With such assumptions, the cost of the meeting varies between $ 12 000 and $ 25 000. Of course, these are only simplified values and can be very different from real cases. However, the purpose of this article was to highlight costs that we usually overlook and their potential to generate savings.

Descriptionnumber of peopleMinimal versionOptimal version
Participants travelling by plane43 2005 800
Participants travelling by car168 96019 680
Total meeting cost$ 12 160$ 25 480

Despite the fact that privote services are not free, they constitute a small fraction of the total cost of organising a meeting. Even in case of a small-scale sitting, online voting allows actual savings of $ 20 000.
Remember that privote is not only about financial savings. It also saves time and allows to make decisions faster. These elements very often translate into competitiveness and market success.

Sources:

1. Skift + TripActions Business Travel Survey, 2019
2. Investopedia, 2020
3. Financesonline
4. BTN Business Travell News, 2020
5. Statista
6. ReportLinker, 2020
7. The balance careers - Average Salary Information for U.S. Workers , 2021
8. IRS - Average Salary Information for U.S. Workers, 2020
9. Business Insider - How much airfare in the US costs today compared to 10 years ago, 2019
10. Budget your trip - How much airfare in the US costs today compared to 10 years ago, 2021 

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