1 In 10 Firms Admit They Are Unsure If They Will Survive The Next 12 Months
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Global expenses app, ExpenseOnDemand,
manages expenses for thousands of businesses globally. The insights from the millions of claims processed give detailed overviews of how businesses manage clients, cost, growth, recruitment, workplaces, and many other factors in real time. The leading expenses firm also commissioned an extensive survey of business leaders to understand how firms are utilising tech and the biggest challenges they face. The survey showed that although the majority (73%) of global businesses are optimistic about the next 12 months nearly 1 in 10 (9%) are unsure if they will survive the year.
Based on their global insights and the extensive survey the firm has put together its top ten predictions and challenges for businesses in 2023.
1. Remote working
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Many firms are battling between back to the office and accommodating remote workers. For millions of employees, the hybrid working week has become the most popular solution offering the perfect blend of the freedom to work from home.
Many businesses especially in large countries to accommodate hybrid working firms are setting up networks of localised satellite offices in smaller towns and cities. The impact of this new trend is a reduction in office space in large cities which reduces real estate costs as office space is 3 or 4 times more expensive than in smaller towns. Having regional offices not only reduces costs but also increases the talent pool available to hire from.
2. Client Meeting
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Over the last few months, mileage expense claims have increased globally showing employees are spending more time visiting clients. The largest increase in mileage claims has been across sectors where physical goods are involved as customers are more likely to insist on in-person meetings. Whereas in sectors where digital solutions are sold only 20% of employees are meeting clients in person.
Interestingly “loneliness” is one of the key motivations for face-to-face meetings, especially in Europe, and to a smaller extent in the US.
3. Energy Costs
Despite subsidies being provided in many countries, employees are still being impacted by rising energy costs which for some is making it less feasible to work from home. Hence, travelling and congregating in the office has become more of a necessity. This trend is likely to increase further in countries having particularly cold winters which we have already seen across Europe and parts of the US.
4. Focus on Productivity for home workers
Many businesses are using tech solutions to help them monitor employees working from home and help increase productivity. This is especially true in larger organisations which are more likely to automate productivity whereas SMEs are looking at more innovative ways to address this problem, by targeting people on deliverables.
5. Accelerated digital transformation
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This trend is set to not only continue but accelerate further in 2023 as firms look to automate more and more business processes to help manage an ever-increasing hybrid and remote workforce and reduce costs by implementing the right tech solutions.
Despite many central banks saying that inflation will slow down in 2023 and actually begin to reduce in Q3 and Q4, the spectre of it is making businesses cautious, which in turn is impacting investment.
This is further exasperated by disruption in the “China” supply chain and the Ukraine and Russia war which are both impacting inflation. Even if these issues continue the world economies are adapting which will eventually help steady prices around the world.
As more businesses focus on sustainability and reducing carbon footprints, we have seen a continued reduction in international travel claims, and this is expected to continue in 2023. However, this trend is not true for domestic air travel in larger countries such as the US & India with business claims at for domestic flights higher than even before the pandemic.
8. Skill Shortages
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Skill shortages are starting to impact businesses globally, especially across certain sectors. Businesses are battling for small pools of talent, and this is leading to increased salaries, flexible working, and increased employee incentives to ensure firms can attract the best talent. This trend is set to increase in many countries in 2023 and businesses are using local satellite offices and completely remote opportunities to increase the talent available to them.
9. Client and Staff Entertainment is back
As businesses struggle in complicated economic climates, building stronger client relationships is set to be a key strategy in 2023 which will see an increase in client entertainment. The same is true of staff entertainment as businesses focus on looking after the talent they have as replacing staff remains challenging. We have already seen these trends in the latter part of 2022 as expenses for staff and client entertainment have increased significantly.
10. Economic and Political Issues
Image by Gerd Altmann from Pixabay
As the world continues to adapt to the conflict in Ukraine and the continued impact Covid has had on the global supply chain, especially as China continues lockdowns, economic and political factors are set to have big impacts on businesses across the globe. The positive news is that world economies are beginning to adapt and as mentioned this should see steadier economies, lower inflation and key economies coming out of recession.
At ExpenseOnDemand we are always listening to our clients as we know they are permanently changing and adapting to navigate multiple factors impacting their businesses. This is why we offer a completely tailored solution to mirror our client’s current business processes allowing them to hand-pick only the functions they need, saving them money and time.
Sunil Nigam, Founder at ExpenseOnDemand, commented:
“Managing and monitoring employee expenses are challenging especially with a remote workforce and that is why we offer a flexible and tailored solution and work with our clients to match their needs.
ExpenseOnDemand will allow you to automate all your staff expenses and we pride ourselves on ensuring our tech is market-leading and our costs are not only completely transparent but also very competitive. At ExpenseOnDemand we offer a 30-day free trial, with the option to “pay as you use” model, allowing our clients to have flexibility and reassurance that they aren’t tied into a long-term commitment."