Companies are targeting business travel as they look to claw back cash in light of the current economic climate, according to a survey from the Chartered Institute of Personnel and Development (CIPD) and KPMG.

Three-quarters of private sector employees (74%) have reduced their travel expenses, compared with 50% in both the public and voluntary sectors.

And the recession also appears to be encouraging more employers to adopt greener working practices.

Almost two-thirds (62%) of the survey’s 892 respondents have increased their use of tele/video conferencing, while 43% have increased their use of public transport.

“It’s no surprise that organisations are reining back on non-essential spending and scrutinising their policies carefully,” said Tim Payne, head of human resources at KPMG.

“What is important is that policy changes are made sensitively and in a way which preserves goodwill.”

Other reductions have been seen in the use of private transport, with 64% cutting the use of taxis.

And a growing number of firms are using travel plans and sustainable transport initiatives to reduce their impact on the environment and their costs.

“Importantly for operators of car fleets, travel plans don’t need to be against car use,” said Roslyn Cumming, Fleet Safety Forum manager.

“They simply have to ensure the right type of transport is used for each travel requirement and that the requirements to travel are reviewed and minimised wherever possible.

“Travel plans promote flexible and sustainable transport solutions, which can help to cut costs, protect the environment and improve safety, including alternatives ranging from public transport to walking, to video-conferencing.

“They can and should be used by all companies, whatever type of fleet they operate.”

Encouraging alternative transport can also have a massive impact on road safety, according to transport minister Jim Fitzpatrick.

“In these economically difficult times this is an important factor which can help persuade some sceptical managers to pay more attention to something that should be part of their health and safety policies anyway,” he said.


How can you cut costs?

  • Review your vehicle choice lists according to the most fuel efficient and safest vehicles.
  • Provide training in safe and fuel efficient driving techniques.
  • Introduce a travel plan providing clear guidance for managers to follow in deciding whether journeys by road are really necessary. Policies can encourage the use of trains for business travel and require meetings to be scheduled in locations easily accessible by public transport.
  • Review mileage rates to ensure they do not encourage drivers to cover excessive distances.
  • Use route planning software to help drivers plan the most efficient journey.
  • Ensure managers allow enough time for drivers to reach appointments, decreasing fuel use and crash risks.
  • Encourage vehicle sharing, rather than employees visiting the same customer in different vehicles.

Source: Brake