Employees in North America Are Not Claiming $10.7B in Business Expenses
Posted by Scott Kamieneski
Prohibitively complex expense management processes are costing your employees – and leading to disillusionment, which is bad for your bottom line.
Unit4 recently sponsored Ruigrok | NetPanel researchers in conducting a multi-national study on expense claim processes among senior and middle management professionals in North America and Europe. By surveying nearly 2,000 employees, the research concluded that many employees regularly don’t expense everything they could. And while that fact may not surprise anyone working in the corporate world, some of the big-picture implications are quite shocking.
With 17% of Americans and 23% of Canadians regularly not claiming all of their expenses, the money left on the table adds up to a staggering USD$10.7 billion. It’s no wonder that 42% and 21% respectively feel taken advantage of by their company’s expense claims processes.
The reasons cited by employees who regularly don’t claim expenses include some that you may even have made yourself, from low value claims that don’t seem worth submitting, to forgetting to ask for or losing receipts while travelling, and simply forgetting to submit claims when you’re busy with higher value work. With a third of employees having to wait more than one month for reimbursement, it’s not surprising that the same proportion report not submitting claims as a result of complex and inefficient claims processes.
In an era increasingly typified by millennial “job hopping” attitudes, companies can’t afford to be alienating employees with murky, mysterious expense claims policies and processes.
One easy way to show your employees you care is to smooth out some of the processes that impact their own bottom lines. Since many of your employees end up handing back part of their salaries in unclaimed expenses, smoothing out your expense claims process could earn you more respect and goodwill from your employees. We know employees are a company’s biggest investment – making them feel like valued assets can improve your bottom line significantly by increasing productivity and improving retention rates.