Experts urge employers to prioritise reimbursing expenses amidst rising cost of petrol

Experts have urged employers to make improving expense reimbursement times a priority, given the rising cost of petrol, and high energy bills. 

The Inconvenient Expenses study, conducted by Just Eat for Business, reveals workers attitudes towards handling admin for expenditures like lunch and petrol, as well as finding out the average time it takes to submit and process these expenses.

Over a fifth (22%) of workers in the survey report that their most common expense is petrol or diesel costs. Amid the rising cost of petrol, as well as household bills, reimbursement for such expenses is more crucial than ever. 

Slow reimbursement is proving to be frustrating for many, with nearly a fifth (19%) of workers would like their organisations to speed up the time it takes to process their expenses. 

Experts have blamed confusing expense policies for delayed employee reimbursement, claiming that policies can often lead employees ineligible for refund due to their lack of clarity. 

Ashley Amor, co-founder of PeopleFindFast, comments that long wait times for reimbursement are unacceptable, and that the onus is on organisations to rectify this:

“While there is no specific law regarding expense report reimbursement deadlines, there is widespread agreement among professionals that waiting more than 30 days after submission is not acceptable. Companies should define their reimbursement procedures very explicitly. 

“Complicated and long expenditure reimbursements not only cause inefficiencies throughout the organisation but also negatively impact employee satisfaction. Companies should create a comprehensive business expense policy that clearly identifies which company expenses are eligible for reimbursement and which are not. This will speed up the reimbursement process. 

“Software that automates company operations can make a huge difference in employee reimbursement. Finance teams can use expense management software to replace paper reports with smart reporting solutions that deliver accurate and real-time data on all business spending.” 

Caleb Riutta, Co-Founder at Offer Sesame, weighs in on the study, commenting on the often confusing expense policies which can sometimes leave employees ineligible for their expenses after submission:

“Many business purchasing policies are overly complex, confusing, or even contradictory in an attempt to cover every possible circumstance. On the other hand, some businesses lack explicit policies and instead rely on employees to utilise their best decision, which may not coincide with the financial department’s. 

“For example, employees may unknowingly spend outside of policy and be unable to get reimbursed in both circumstances, putting them at an economic disadvantage simply for trying to execute their jobs. Finance should support systems that ensure personnel comply with the policy in the first place, rather than reprimanding them after they’ve done something wrong.” 

So, how can employers look to quickly reimburse regular expenses – such as food or drinks, which account for 31% – while reducing admin time on both sides?

Lucy Cantan, Sales and Partnership Director at Just Eat for Business, weighs in on the polls: “Completing and processing admin for expenditures such as lunch or work dinners can be time consuming for all involved – whether you’re an employer or employee. However, it’s really important that everyone receives what they’re owed and continues to benefit from paid-for meals and travel costs. 

“That’s why we encourage businesses to take advantage of schemes like Just Eat Pay, which reduces the hassle of completing and processing expense forms, and means employees and employers alike can focus their efforts elsewhere.”

To find out more about Just Eat Pay, please visit: https://business.just-eat.co.uk/just-eat-pay

Author: Editorial Team

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