3 tips to optimize Employee Expenses

Jul 30, 2014 | Expense Management

With the winds of economic recovery that are blowing in the sails of companies, business trips and other business initiatives directed towards looking after and growing the client list are restarting; establishing new collaborations with foreign partners or simply activating business units that had lost operability during the crisis.

The results is that amount dedicated to this is again increasing, and now more than ever, it is important to set the bases for a good employee expenses control process to maintain efficiency in the costs.

expenses control process

Employee expenses Optimization

1. Less is more.Simplify

If a business trip is conducted in the correct stage of the negotiation process, many trips can be saved. Also shorter trips can be chosen and involving less company employees.

The best way of optimizing is always to identify the resources that really bring value to the Company, and to eliminate those that are not really necessary but have traditionally been there. There are Company policies that allow an inefficient use or that contribute to an unnecessary cost base don complicated processes. Simplifying everything related to the management of employee expenses will contribute to reducing the associated costs.

2. Reasonable and clear expenses policy

According to a report of the NBTA (National Business Travel Association (USA)), more than 60% of the employees see the Company policy related to expenses as a suggestion or recommendation, rather than a rule or obligation. This ambiguity creates a dangerous margin of non-compliance that increases the time and effort that the Company must apply afterwards in controlling the excesses, as well as an increase in expenses while assuming the excess costs so as to avoid a confrontation with or dissatisfaction of the employee.

It is important and healthy for both parties that the rules are very clear and accepted by the employees. For the latter, they should be reasonable, of course. But it is much better to have the support of the staff in this matter than to try to manage the inefficiency that an imprecise situation generates.

3. Technologic Update

New technologies have brought a good dose of efficiency to the business world. Some that can improve the management of the employee expenses process are:

Technology to improve travel expense control

- Systems for the management of travel reservations.
- Systems that integrate the entire employee expense management process.
- Capture and scanning of expense tickets through cell phones.
- Alerts and automation of sending emails for authorizations or in case of non-compliance with the company's expense policies.

And of course, you can always rely on technology to reduce employee costs, such as videoconferences, and I that way save on travel costs in specific situations.

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