The actual cost of a meeting
139: Meetings are costly. We've all seen that our productivity drops significantly as our calendars fill up with countless meetings.
Meeting drain affects practically every company at some point. Employees begin to complain about how much time they spend in meetings; no one can find a time to meet; rooms are overbooked; and, inevitably, someone begins to joke: how much is this meeting costing us? Whether it's a joke or an actual question for the company, the calculation is always simple:
Determine each attendee's hourly rate.
Multiply that rate by the time of the meeting.
Add each attendee's costs together to figure out the total cost of the meeting.
Using this approach, a meeting with four attendees at $70 per hour costs $280. That may not seem like much, especially for such an important matter to be covered in a meeting.
Unfortunately, the actual cost of that meeting to the business is much higher.
There's the time spent arranging the meeting.
There's the time spent preparing and following up the meeting.
There's the time spent regaining concentration after switching tasks.
There's the opportunity cost of what you now can't do instead.
Meetings can also be fatiguing, which costs your productivity for the rest of the day.
Estimate the Cost of a Meeting with This Calculator
How can we reduce meeting costs?
According to Microsoft 365 user statistics and analytics, 50% of meeting time is wasteful because people are multitasking, sending emails, or focused on other things rather than paying attention to the meeting they are in.
Make sure your meetings are worthwhile regarding both time and money. Follow the seven tips below to save meeting costs and boost your team's productivity.
Be cautious if the word "information" appears on the agenda
Information, recap, or review words should never appear on the agenda. You should only have one bullet point on your agenda: "Set product launch date," "Select software developer for database redesign," or anything else that requires a group to debate, discuss, and decide.
Avoid using the "but we need buy-in" justification. Meetings do not result in buy-in. Great ideas generate buy-in. Great projects generate buy-in. Instead, focus on explaining why you're doing it and helping people realize why it's necessary. An excellent initiative or idea that resonates with your company's goals generates buy-in.
What about information? Share it with everyone before the meeting. If the group needs to decide during a meeting, they should receive all of the information they need ahead of time to be prepared. Send documents, reports, short videos, and other materials to attendees beforehand. People will arrive informed and able to make decisions based on the same degree of information.
Holding a meeting solely to discuss information wastes the time and money of the entire group and the company itself. Consider this the next time you attend a meeting:
Are you there to make a decision, or are you there to share knowledge that could have been communicated without holding a meeting?
Do not stick to the typical meeting length
Calendars generally break down meetings into 30- or 60-minute blocks. Also, we are taught to expect things to begin and stop at specific times, such as 11:30 a.m., 8 p.m., or 5:30 p.m. We prefer round numbers because they are more pleasant.
So, even though a decision can be made in ten minutes, a meeting that begins at 9 a.m. is frequently scheduled to last until 9.30 a.m. or 10 a.m. What is it that always happens? You occupy the time. When was the last time a meeting you attended ended early, and you intentionally ended it before the meeting was scheduled to end?
Meeting time is equivalent to purchasing a larger home. Whatever amount of space you have, you will eventually fill it with stuff. Do you really need all that space/time?
Instead, establish how long a meeting should go based entirely on what you need to accomplish. When you book the meeting in your meeting scheduling platform, plan the time according to the agenda. Set aside a certain amount of time for each bullet point. Inform everyone that the meeting will end on time regardless of what happens. Schedule ten minutes if you only need ten minutes. And then stick to it. Also, if you only require ten minutes, do you really need to hold the meeting?
When you're in a meeting, and the host says, "OK, we're out of time here. We just have 10 minutes left, and we need to get started on this assignment," consider how productive and focused you will be, and how many decisions you will be able to make.
Meetings are unusual in that you always bring your A-game at the end when the session finishes, and you need to make that decision. What would happen if a meeting began this way and you tried to limit yourself to 15-minute meetings? People would arrive prepared and equipped!
Start on time - do not allow people to be late
It happens frequently. A few people arrive early for the meeting. They begin to converse. The room is filling up. It's time to start, but the last ones have yet to arrive. So you sit and wait. And then wait some more. And maybe you ran out of coffee and need to re-fill it.
When the moment comes, start right away. Every meeting should begin on time. Do not waste the initial minutes of a meeting or a workday, and do not start meetings late.
Regarding morning meeting management and meeting culture, some people are sluggish. Start when the time comes to break the harmful habit! Otherwise, you're wasting other people's time and money.
Stay focused and on track
Allow no one to "think out loud." Why? They should have their minds together by now. They should arrive prepared with concrete ideas based on the facts you gave ahead of time because you ensured that the brief and summary were sent before the meeting with the agenda.
Of course, if it's a brainstorming session, that's OK. Then everything is OK. Otherwise, expect people to come prepared with well-developed ideas about the discussed issue. Anyone who did not prepare should not be allowed to participate if any thoughts arise.
Consider it the next time you attend a meeting with a defined agenda, timeframe, and goal. Did the meeting go as planned, was the meeting's aim met, and was the agenda followed?
Make sure to establish accountability
Great meetings produce decisions. That is why we get together. A choice, however, is not a decision if it is never carried out or executed. Make sure to establish what, who, and when the next time you're in a meeting.
Never allow ownership to be ambiguous or confusing. An action item that lacks a clear owner (and sometimes a date) is equivalent to saying: It is someone else's duty. As a result, it soon becomes no one's responsibility. And then there are wasted meetings, lost time, and lost money!
A list of action items is all you need
A lengthy summary is rarely required. The only thing you need from a meeting summary is a list of action items. State what was decided, what will be done, who is in charge of accomplishing it, and when it will be done - that is good meeting management!
Never add phrases such as "discussed the possibility of redesigning handover processes between functional roles."
If all you did at the meeting was talk about reorganization, emphasize making a decision next time, and include "discussion" in a meeting recap.
When others see the note, the next meeting will discuss something because it is allowed, right? People may believe that general discussions are worthwhile.
Go out and get things done
If the meeting aims to improve "team cohesion," don't hold it. Team members must collaborate well to be productive, have a meaningful work life, and contribute to the overall goals. However, they do not need to hang out or "bond" to operate successfully. Not at all, especially in a meeting.
Great relationships in business are formed when people collaborate to achieve a common objective and share the same vision. And in the process, they can rely on one another to do their part, meet commitments, deliver on schedule, hold one another accountable for deliverables, and get things done.
Incredible relationships emerge when tangible accomplishments and meaningful goals are met. After, not before. The "getting things done to meet your goals" component attracts excellent teams. Not sitting in a conference room debating how it could be done.
Interpersonal interactions should not be confused with productive relationships. The best method to develop team friendship is to accomplish complex tasks rather than sit in a conference room. Meetings are not all created equal and should not be treated the same way.
Not all meetings are equal; specific sessions must be instructive, take time, and include many people to discuss a particular topic.
According to Microsoft user research, half of the meeting time is wasted due to multitasking and interruptions. Stick to the meeting agenda and complete the critical activities as fast and efficiently as possible to improve meeting productivity and, in turn, lower overall meeting expenses.
Standing meetings or just holding the meeting in a less formal venue, such as a huddle in a modern workspace, can help attendees focus and save time and money.
There is always room for growth! So, the next time you're in a meeting that you don't think adds any value, people are multitasking, arriving late, don't send out an agenda, make 3-page meeting minutes (including the discussion you had - not the decision you made), write a check for the amount of time spent on that meeting and see who will pay for it.