The figures that summarize the expenses claimed by employees to your company per year amount to 5,000 euros. This circumstance causes them stress and uncertainty about the date of reimbursement, according to a new study by Pleo, the business expense solution for companies with one to 500 employees.
70% of employees who have business expenses they use their own money to pay them; on average, they disburse 106.49 euros per transaction between three and four times a month (49.34 times a year). This equates to a whopping €5,245 bill for annual business expenses per employee.
It has been verified that these expenses of the company have regular negative repercussions in the personal budget of the individual. Nearly 60% of workers say they have been unable to meet their personal financial obligations, such as paying bills, renting or purchasing, because they are waiting for reimbursements from their company. 4% say this happens regularly.
Employees usually take 10 days to submit an expense claim, while the company usually takes another 10 days to reimburse the amount, which is a total of 20 days from the date of the transaction until the money is reimbursed. And in 17% of cases, employees wait a month or more to receive money from their company from the date of the request. Staff also estimate that they spend an average of one hour and 33 minutes per month managing expenses, wasting time for the company and sometimes for themselves.
Furthermore, nearly three-quarters of employees (73%) admit that They worry that they won’t be able to recover money when they shop for work. All of these factors contribute to 35% of employees saying they are more concerned than ever about using their own money for work expenses.
smart solution
However, with the right expense solution, businesses can ensure that the waiting time for reimbursement, and other factors, is over. Companies have the added opportunity to work together with their staff to ensure that so-called out-of-pocket payments do not have an impact on the mental well-being of staff. These types of expenses are not ideal for companies either, since, by reduced visibility of finance teams about them, they only have a partial view of business expenses, and may have difficulty managing them.
To alleviate these issues, companies should seize the opportunity to provide a more progressive, self-contained, and time-saving solution for business expenses.
Álvaro Dexeus, responsible for Pleo for southern Europe, points out that «If action is not taken, the state of business spending will begin to eat away at the employer-employee relationship. Therefore, both companies and their employees must work together to find a solution. At Pleo, we’ve long recognized the power of a smart business expense solution that restores trust and fairness to the world of workplace spending. Today, this need is greater than ever. By moving from a legacy expense management system to a simple, affordable expense solution, companies can reduce the likelihood of employees paying out-of-pocket and ensure they’re not adding to current financial pressure. Businesses can see benefits beyond efficiency, with processes that foster autonomy, real-time data and visibility, helping teams become more aligned and compassionate with one another.”.
