Expense management is a cornerstone of efficient business operations, particularly in the realm of corporate travel. Yet, the traditional methods of managing travel expenses have far-reaching implications on the physical and mental health of employees, as well as the financial health of organisations. This traditional process has become burdensome for both employees and employers, leading to inefficiencies, financial strain, and reduced well-being. In response to these challenges, a transformative solution has emerged: travel allowances.
This is a summary of our eBook 'The Hidden Health Impact of Traditional Expense Management'. To read this eBook in its entirety click here.
Traditional expense management processes, characterised by manual reporting and reimbursement delays, have taken a toll on employee health and organisational efficiency. Business travellers, in particular, face a myriad of physical and behavioural health risks, from stress and sleep interruption to unhealthy eating habits. Moreover, outdated expense management systems contribute to unnecessary stress and anxiety, further exacerbating the negative impacts of business travel. This has resulted in business travellers reporting higher body mass index scores and further health issues such as clinical symptoms of anxiety; depression and alcohol dependence; no physical exercise; smoking; and trouble sleeping. All of these factors add up over the long-term, having a serious impact on traveller health.
But it is not only employees who are feeling the impact of traditional expense methods, organisations too have their health compromised by traditional expense management methods. These traditional processes increase the burden on organisations and can be damaging to the company's long-term financial health considering the levels of fraud and non-compliance associated with traditional expense management methods. As one of the most prevalent types of employee fraud, expense fraud costs businesses 5% of their total revenue annually and over £3.5tn worldwide.
The status quo in expense management isn't good enough for the modern business. It has numerous negative impacts for both employees and organisations. But all is not lost.
Enter travel allowances—a paradigm shift in expense management that offers a fresh approach to addressing the challenges of business travel. Travel allowances simplify the expense reporting process by providing predetermined funds to employees for business expenses during trips. With virtual allowance cards and real-time expense tracking, travel allowances offer a streamlined solution that benefits both employees and employers. This significant enhancement to the conventional expense management process removes the need for travellers to dip into their personal finances while on work-related trips, not only preserving their personal funds, but also eradicating the cumbersome waiting period for reimbursement. In the context of the increased financial strain currently facing business travellers, this change provides substantial relief, alleviating a major source of stress associated with business travel.
Organisations can use allowances to promote healthier spending habits in their travelling employees. By leveraging real-time insights into employee spending patterns, companies gain visibility into how employees are spending their allowance, particularly in terms of meal allowances. Armed with this data, organisations can proactively encourage their employees to make healthier dietary choices. This not only fosters a culture of health and well-being but also contributes to increased productivity, as healthier individuals are generally more focused and energised.
Beyond the immediate benefits of providing a more favourable and healthier experience for business travellers, allowances offer multifaceted organisational advantages that extend to fraud prevention, travel policy enforcement, and administrative efficiency. The dual benefit of enhanced employee health and a strengthened employer-employee relationship underscore the profound positive impact that travel allowances can have on the overall work experience and the long-term health of an organisation.
Successfully implementing travel allowances requires a structured approach to ensure a successful transition from traditional expense management systems. Organisations must assess their current expense management systems, set clear objectives, and select the right allowance model based on their unique needs.
In assessing their current expense management systems, organisations should consider challenges related to expense fraud, tracking, reimbursements, employee satisfaction, and the health of travelling employees.
Clear objectives must be defined to guide the implementation process effectively. These objectives should align with the organisation's goals and may include simplifying the expense management process, enhancing cost control, improving employee health and satisfaction, and enhancing compliance.
Selecting the right travel allowance model is crucial as it sets the foundation for effective policy and guideline development. Policies should address expense categories, allocation methods, limits or restrictions on expenses, and procedures for requesting and managing allowances.
Clear communication, training, and ongoing support are essential for managing employee expectations and ensuring a smooth transition to travel allowances.
Choosing the right allowance management solution for implementing travel allowances is crucial for success. Define specific requirements based on factors like organization size, integration capabilities, mobility support, customisation flexibility, and reporting features. Research and compare options, considering features, user-friendliness, cost, customer support, and scalability. Seek recommendations, request demos, and gather user feedback.
In today's mobile-centric environment, ensuring mobile access to the chosen solution is important. Evaluate security features, including data encryption and access controls, and confirm compliance with industry and legal regulations, and consider implementation support. Once the evaluation is complete and organisational needs are clear, make an informed decision and implement the chosen expense management solution in alignment with established policies and guidelines.
Transitioning to travel allowances from traditional expense management methods requires effective management of employee expectations for a successful implementation. Clear communication is key, highlighting the reasons for the change and the benefits of travel allowances, such as simplified reporting and predictable income during trips. We recommend that you provide training through workshops, user guides, and online resources to help employees understand and buy into the new system.
It is important that you address any employee concerns and questions by encouraging open communication and setting up support systems. It is also possible here to go with a phased implementation before a full-scale rollout, allowing you to address any initial concerns. This will help make sure that employees have realistic expectations about the transition, giving you time to communicate any adjustments they may need to make.
In conclusion, travel allowances represent a revolutionary approach to expense management that addresses the challenges of traditional methods while enhancing employee satisfaction and organisational efficiency. By embracing travel allowances, organisations can streamline expense reporting, improve cost control, and foster a healthier, more productive work environment. The time to modernise expense management is now—unlock the potential of travel allowances and propel your organisation into the future of business travel.
Revolutionise your expense management with travel allowances—transforming challenges into opportunities for organisational success.
This is a summary of our eBook 'The Hidden Health Impact of Traditional Expense Management'. To read this eBook in its entirety click here.