Crises change our perspective, making us re-evaluate things once passively accepted, like expenses.
According to an Ipsos survey many employees can’t cover out-of-pocket expenses and rely on credit card debt (52%) or borrowing from family and friends (14%).
This creates headaches for employers, including needless admin, employee retention, and financial clarity.
Of employees who noted that out-of-pocket expenses always invoke anxiety, a laundry list of issues emerges:
And perhaps most symbolically for our current circumstances, 20% said they simply can’t afford to pay for expenses.
Almost half (43%) of those earning £70,000 and over say that their out-of-pocket expenses “increased significantly”. And 58% of these earners reported being “always or often anxious” about paying out-of-pocket.
The expenses problem extends all the way up your organisation. It’s not a ‘junior’ or ‘low-income’ issue: It affects everyone (including your most senior and skilled staff).
Employees have a strong idea of how reimbursement could be overhauled. Almost two-thirds (62%) say reimbursement should be replaced with a system of company cards.
Ending reimbursement creates a fairer, more humane system. It also happens to offer businesses more visibility on spending.
Every individual employee would have their own card with a set spending limit, making it easier to effectively monitor individuals’ spending and catch issues like inappropriate spending before it spirals out of control.
Want to know more?
