Automation helps to significantly decrease time for reimbursements by eliminating the need to manually enter information into an expense-approval system.
Employers that don’t reimburse employee expenses in a timely manner can result in a negative culture and increased staff turnover. A recent survey shows 54% of respondents have to wait more than a week for reimbursements, while 11% of respondents said they have to wait up to a month.*
Paying your staff on time is critical to retain staff, and that includes not only their salaries but also for reimbursing them for business-related expenses. Hiring and retaining the best employees is a challenge right now for Australian businesses, so a seemingly simple factor such as expense reimbursements can make a difference in talent retention.
Outdated expense management processes are another issue and are the main cause of slow reimbursement. This can be frustrating and distracting for staff as they may worry about making personal credit card payments.
Automation helps to significantly decrease reimbursement times by eliminating the need to manually enter information into an expense-approval system. This reduces the chances of human error and speeds up reimbursement processes.
There are three key reasons to reimburse faster:
Improved efficiency. Employees want to replace outdated, paper-based, manual processes with mobile, automated tools. Research conducted by Concur shows that employees resent the slow, laborious process of expense claims and 54% of employees surveyed want quick expense reimbursements.**
Increased staff morale. Employees like consistency of payments; it builds trust and, in turn, creates a positive business culture.
Better financial management. An automated process that records expenses and reimbursements helps finance team better calculate profit and cashflow. Understanding how much money will leave the business helps managers make smarter decisions.
Paper-based expense management no longer cuts it for employees. Businesses need to step up and upgrade their process to ensure employees get paid on time. The benefits extend beyond staff morale, which is a critical factor in itself.
* Concur (2016). Omnibus Study on expenses. Ipsos
** Concur Technologies, Inc., “Grayling SME Study – Expense Management,” November 2014
Matt Goss, ANZ Managing Director, Concur