Risk-free Solution to the Challenge of Out-of-Pocket Expenses for Employees

An employee’s struggle to reclaim what is rightfully theirs is a tale as old as office culture itself.?In the complex landscape of workplace dynamics, a prevalent theme tells a story of unspoken struggles— out-of-pocket expenses. While the pitfalls of flawed reimbursement systems are widely acknowledged, the stories of employees grappling with these financial burdens remain largely untold.

Meet Sade

Sade is an employee diligently navigating the labyrinth that is the corporate world. She has dedicated hours to meeting deadlines and playing her part in contributing to the success of the company she works for. Now, she finds herself wrestling with a seemingly straightforward task— submitting the list of expenses she has incurred on behalf of the company.

How hard could that possibly be??

After hours of trying— and failing— to recall every naira she has spent on company expenses out-of-pocket, she submits her list. She attached faded receipts and loose explanations of what the money she spent had been for. Then begins the waiting game. Days turn into weeks, and the weeks threaten to stretch into eternity as it becomes apparent that she has become another statistic in the flaws of reimbursement systems.?

Different Companies, Same Flaws

In many companies, the path to reimbursement for out-of-pocket expenses is a twisted trail of paperwork, approvals, administrative hurdles and red tape as far as the eye can see. While the specifics may differ, Sade’s story mirrors the experiences of many employees around the world who face the burden of financing work-related costs.?

These narratives reveal the struggle that employees face as they buckle under financial strains caused by delayed reimbursements. The frustration is palpable, yet often concealed beneath the surface of professionalism.?

The glaring truth remains that while these employees sought to make a sacrifice they hoped to be repaid for, they became victims of a flawed system.

What many companies fail to realize is the extent to which these flaws in their reimbursement system affect their employees.?

The Hidden Cost of Flawed Reimbursement Systems

Beyond the frustration these employees feel, several hidden costs come along with flawed reimbursement systems:

1. Negative impact on personal finances: Delays in reimbursements can take a toll on an employee’s budget. This leaves them in a fix and holds up the funds meant for pending bills, savings, investments, and personal indulgences. For them, this is more than just an inconvenience as this flaw directly threatens the very fabric of their financial well-being.

1. Loss of Trust: Like with every relationship, trust is the foundation of the relations between an employer and employee. This trust hangs in the balance when employers aren’t transparent about reimbursements. Their word begins to lose value in the eyes of employees, breeding distrust and putting a strain on what should have been a healthy relationship.?

1. Decreased Morale and Productivity: As the wait for reimbursement drags on, it is not surprising that one of the costs of a poor reimbursement system is that employees like Sade experience a decrease in morale and thereby, productivity. It takes a toll on them psychologically leaving them feeling undervalued and unenthusiastic about doing the great work that they are usually known for.?

1. Reputation damage: A flawed reimbursement system can tarnish a company’s reputation among its employees causing avoidable unrest or backlash. Externally, word may get out about the company’s incompetence when it comes to financial matters, making it difficult to attract top talents.?

From this, it is clear that both employees paying out-of-pocket and flaws in a company’s reimbursement system put employees at a disadvantage.?

But how do these two things directly impact your company??

Your Blind Spots: The Impact on Your Company

When your employees pay out-of-pocket, it leaves your company with blind spots: you are unable to accurately create your budgets and track company expenses and balancing your books becomes somewhat of a hassle.?

By giving anyone on your team a Swipe card to cover company expenses, you kill two birds with one stone— no more out-of-pocket payment for employees and you cut out reimbursement hassle. Also, you can always track where company funds go, create and stick to budgets better and make informed financial decisions for your company.?

Now, let’s do right by your employees….

The ripple effects of out-of-pocket expenses and flawed reimbursement systems are far-reaching and the message is clear: neither you nor your employees should experience such dire situations just to get work done.?

So how can you fix it? Book a demo today, your employees will thank you for it.?