AI platform AppZen has revealed that global expenses have shifted owing to the coronavirus pandemic.
There has been a radical change in the global workforce due to the COVID-19 outbreak. Several people are already out of work, conferences are being canceled or postponed, and the majority of employees are working remotely. All these factors have led employers to rethink a new set of financial considerations. According to the latest report from AppZen, the public health crisis is increasing, and there are no signs of expenses slowing down anytime in the near future. There has been a significant increase in the work-from-home expenses, and they will most likely continue to increase over the next few weeks as more companies as the majority of offices are temporarily closed due to lockdown.
As per the report, from March 7 to 14, expenses related to the pandemic doubled— mainly due to canceled work trips and work-from-home costs. Expenses differ from industry to industry. The majority of coronavirus-related expenses are mainly due to travel changes and accounts for over 50% of expenses among most of the industries. Meanwhile, it is nearly 100% of the global expenses for hotel and entertainment industries.
In the case of finance and software industries, the expenses are half of the total on remote work. Consumer goods and manufacturing departments are putting 15% to 20% of their expenses on the purchase of masks. Remote employees are spending on turning their home into an office by buying ink, printers, cables, and headphones, among others. In just a week, this category of expenses is the fastest-growing and has recorded a spike of 3.5 times. These expenses are extremely necessary to keep employees safe and to make sure they are comfortable and productive while working from home.
The report also mentions that the spending on masks has dropped from its high in mid-February, and as of March 14 made up just a few percentage points of total COVID-19 related expenses. It is essential for companies to figure out the best way to allocate funds and be a little flexible with expenses. In fact, it could be a good idea to create specific expense categories for COVID-19, to track spending more precisely and tweak budgets.