Is Teleconferencing Cheaper than Business Travel?

How much of your time at work is spent in business meetings?  Statistics show that your average employees attend meetings between 25 to 40% of their workday.  Figures for upper management are even higher.  Because of the investment of time, money and human resources, business meetings are becoming an expensive way to get business done.

As a result, many companies are cutting back on the amount of time that they spend in face-to-face meetings and are turning to other communications channels instead.  Cost considerations have resulted in more teleconferences, videoconferences, and even simple e-mail messages.  This is particularly true at the upper management level, where face-to-face meetings often involve air travel and hotel accommodations.  Many companies believe that a videoconference can be just as effective as a face-to-face meeting and the cost saving is considerable.

But is this really true?  No one disagrees that a videoconference is cheaper than an air ticket in the short run, but when it comes to effectiveness, can a videoconference really replace a face-to-face meeting and will it save money in the long run? 

Whether to invest in a long-distance face-to-face meeting or to simply rely on other forms of electronic communications can be a tough choice to make.  However, carefully considering both the process and the outcomes expected from the meeting will provide you the criteria you need to make the choice easier.

Long-distance meetings that are mostly informational can probably be conducted electronically.  For example, for technical updates, Intel in Penang conducts teleconferences with all participants viewing the same PowerPoint presentation on their networked laptops.  Your company probably does something similar.  Meetings of this sort require little collaboration, and the participants’ role is to listen passively to the presenter unless they have questions at the end.

On the other hand, videoconferences allow participants to check their e-mail, send text messages, and carry on with their work.  They may not pay attention.  That’s why meetings that require coordination, collaboration, group processes and consensus must be conducted face-to-face. 

Studies on business communications have shown that the communication channel used for a meeting is likely to affect the outcome.  Face-to-face meetings encourage participants to collaborate and engage each other.  Persuasion and consensus are more easily achieved as a result. 

Videoconferences and teleconferences may save you a little money in the short run.  However, when it comes to the quality of your meeting outcomes, think twice.  Spending on travel expenses now could save you more in the long run.