Johannesburg, 29 Nov 2010
Personal communication of employees is costing South African companies on average 17% and sometimes as high as 28% of their total communications budget, reveals data from telecommunications cost management company Unison Communications.
“When one considers that corporate spend for 2008 for fixed voice, mobile, LCR (leased cost routing), bulk SMS and Internet was believed to reach R34.8 billion, these cost implications take on a darker turn,” says Craig Young, Group Managing Director of Unison Communications. “Based on the above industry figures and our calculations, South African enterprises in the corporate market could be spending an average of R5.9 billion on personal employee communication.”1
According to Young, Unison's research was gathered through nearly 30 years of data gathered from top companies in the country via its Galactrix telecoms billing system, and then analysed using its sophisticated business intelligence software.
Unison acknowledges the fact that some private communication is necessary at work, and experience has shown them that companies believe 17% of their total communications spend is acceptable. Young says: “Our methodologies give us a guarantee our data is accurate, and when you look at the overall financial burden this is costing SA, one needs to take stock.
“Our data reveals that more than half of the staff contingent of a company typically contributes to the 17% spend, which further highlights a lack of productivity within business. Companies need to be aware of how much time is wasted through abusive usage. During the course of our research, it is not uncommon to find employees who spend on average 40 minutes of every hour worked on private calls.
“Though these cases are extreme, companies are wasting precious resources and budgets on both direct costs and productivity losses, through staff members who spend time on unnecessary personal calls and social network interactions.”
Unison has had particular success within the financial industry; one of South Africa's largest and progressive private insurance companies has saved over 16% of its total communications budget since analysing the business intelligence provided from their communications management system.
“Once the solution was able to provide critical and detailed business intelligence concerning the communications infrastructure, the client was clearly able to be see where the telecoms infrastructure was being abused,” says Young. “Unison's Galactrix solution is able to assist HR managers and Business Unit managers in pinpointing staff members who are not meeting productivity requirements because of their abusive behaviour.”
Young advises that enterprises need to include mobile billing information along with other communication information into a centralised pool. From there key individuals from the financial and HR sectors, business unit managers and line managers can access the information that will allow them to effectively manage personal communications abuse as well as accurately monitor and manage employees' productivity.
He concludes that companies empowered by this information are able to drastically improve their productivity and reduce the costs through various methods such as incentivised bonus schemes or any means suitable to the nature of their business.
1. Source: SA IT Market Overview Sizing and Forecast, BMI-T http://www.bmi-t.co.za/?q=content/amidst-economic-crisis-modest-growth-expected-forecast-it-and-telecommunications-spend
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