During budget season, every business looks for ways to save money – from renegotiating contracts to allowing employees to telecommute to save on electricity bills.
One of the potentially largest expenses in businesses that often goes un-noticed and un-monitored is the time spent in meetings. Business leaders will spend hours pouring over how to increase efficiency in the business – without ever giving a second thought to the amount of time – and therefore money – spent on meetings.
For example, if your 12 person leadership team meets for 60 minutes every week, and their average salary is $100,000 – that meeting alone costs your business close to $30,000.
And that’s just ONE weekly 60 minute meeting.
Let’s consider the sales team. If you’ve got a 20 person sales team, making on average $75k annually, having 10 30-minute calls every week, those meetings are costing your business over $112,000 every year.
All these calculations are based on the amount of time spent in the actual meetings – not even considering the additional time that goes into planning, preparation, and meeting follow-up. Based on our calculations for the Meeting Iceberg, there’s an additional 30% more time that’s spent outside of the conference room. In the case of that leadership team meeting, that takes your meeting cost to nearly $40,000. And for the sales team – for whom follow-up is vital – the meeting costs skyrocket to over $140,000.
How much are meetings costing your business? Find out with our Meeting Cost Calculator. We’ll wait…
Are you surprised? We were.
So, now that you have an idea of how much meetings are costing your business, what are you going to do with that information?
Banish meetings? No. Some meetings are required to share information and move business forward.
Limit meetings? How? Only let specific people call meetings? There’s no real way to enforce who is calling meetings.
Before you start taking dramatic measures and walling off the conference room, there are two easy ways to start learning more about your meetings.
- Measure your meetings as they are now. Key metrics to measure include the number of people in the meeting, the meeting frequency, and duration. From here, you can calculate the cost of each individual meeting, and break it down by the department that held the meeting. If possible, you can also track the number of action items from each meeting.
- Educate your team on how to hold an effective meeting – including setting an objective, creating and sharing an agenda, and following up on action items.
After you’ve established a baseline for your meeting performance, you can begin taking steps to improve your meetings and either win back some of your meeting costs, or validate the importance of meeting time to your business.
More Reading on Meetings:
- 7 Steps to Running More Effective Meetings
- The Meeting Iceberg
- 6 Most Common Types of Meetings – and How To Make Them Better