is money. According to Wikipedia, the saying was first introduced by
Benjamin Franklin and refers to time being valuable and money wasted
when a person's time is not used productively. Therefore, time and
productivity together is about using time wisely by engaging in
activities that benefit oneself or one's organization. But did you know
that by pinching pennies on business expenses, this can actually hurt an
organization's bottom line in terms of productive time?
you earn $100,000 per year. Divide this by 1,500 hours per year
and you get $67.00 per hour. Now let's use this amount to see where
your organization is saving money while losing productive time.
instance, using less expensive transportation to attend a client
meeting - taking a bus or a ferry (as the case may be) rather than
booking air travel may save immediate hard cash, but the losses in
productive time counter the cash savings. Taking a ferry between
Victoria and Vancouver, for example, requires at least 3.5 hours travel
time each way (that's a whopping seven hours). By comparison, air travel
uses about two hours each way (for a total of four hours). At $67.00
per hour, the cost to your organization for your time to take the ferry
is $469 versus $268 for air travel. By paying for air travel, it will
cost the organization $201 more in cash, but it gains three hours of
your productive time (which is also $201 in cash, but the return to the
organization in terms of value of your work during those three hours is
example includes the cost of taking a taxi compared to the cost of
taking a shuttle bus (even when you're on vacation!), the difference in
time, and the value of your time.
what about employee brown bag lunches? Whether you're out at a
restaurant or in the boardroom, you'll still be talking business and the
change of scenery away from the office will add the creative spark
needed to be more productive. That should weigh more positively than the
cost of the lunch.
areas to consider when "time is money" include the cost of meetings
that start late and therefore don't accomplish all they intended. Also,
webinars versus in-person workshops are one of those blurry areas where
employers might think they're saving a lot of money. Depending on the
topic, the webinar may make sense, but if personal interaction is
important, in-person workshops are the way to go.
bottom line is that "uber" penny pinching does not boost productivity
nor does it provide enduring value to your organization, regardless of
the economic climate. Penny pinching on business expenses and training
quashes morale and productivity, and does not significantly impact your