And naturally the amount in question depends largely on your industry and location. So what does the average employee cost these days? Salary statisticsįor most companies, salaries are the largest expense. People can easily account for 70% of your company’s spending. Payroll costs - specifically human labor - are usually the largest expenses for a business. That doesn’t have a whole lot to do with spending, but it’s certainly suspicious. Here’s a fun one to kick off this section: One third of all sick days take place on Mondays. Let's look now at dozens of key company spending statistics, most of which were gathered before the virus arrived. This impact is likely to be felt for years to come. ( McKinsey)Įarly indications show just how a profound an impact COVID-19 has had on how business is done. 21% of companies reported using face-to-face meetings with customers as a go-to-market strategy, down from 55% before the crisis.10% of businesses began using chatbots and web-based customer communications as a result of the crisis.( McKinsey) This focuses on private consumers, but naturally business spending has followed suit. Most business categories saw more than 10% growth in their online customer base.The virus changed the very nature of doing business for many companies. European IT spending (including software, hardware, and IT services) was expected to decline 4.7% in 2020 to reach $487 billion.The business travel industry expected to revenue losses of $810 billion worldwide due to the coronavirus.Its share price continued to rise, however. Facebook reported lower than forecast growth in the second quarter of 2020, perhaps more as a result of an advertiser boycott than the virus itself.Google's ad revenue declined by more than 5%, the first drop in the company's 16-year history.Ad spends were down 9% on average across Europe, with Germany and France falling by 7% and 12% respectively.69% of companies were expected to decrease ad spend in 2020.Among those surveyed, hiring, marketing & advertising, and business travel & events were identified as the most likely budget cuts. 68.9% of respondents in one study felt that their companies were affected either negatively or very negatively by the crisis.So before looking at overall spend trends and longer trend lines, let's quickly examine the immediate impact caused by the pandemic.
At the very least, CFOs and finance teams haven't dealt with comparable circumstances since the Global Financial Crisis in 2008. This international crisis impacted company spending in what felt like unprecedented ways. Most of the statistics in this post deal with the reality before (or regardless of) the COVID-19 pandemic and economic fallout in 2020. Now lets dive into 100+ more interesting, insightful, and incredible statistics related to company spending. It makes sense - no cash means you can’t pay people or buy stock. How do companies really spend their money? We've put together nearly 100 statistics that will definitely get your attention.Īs is customary, here’s an amazing stat that didn’t make the cut below: 82% of businesses fail because of cash flow issues.
We're in the middle of massive changes to the way that businesses handle expenses, payroll, and money in general.Īutomation and new payment methods are taking over, so stay tuned.īut in this post, we want to take stock of business spend as it stands today. We take company spending seriously here at Spendesk.