Business

Spanish companies, the slowest in Europe to return money to employees

Spanish companies, the slowest in Europe to return money to employees

Between the time an employee purchases a job and the approval of that expense, it usually takes days, which can cause discomfort for workers, especially in cases where payment has been made with money. personal money. , assert that “expenses such as electricity, Internet or telephone have ceased to be assumed by the company to be the responsibility of the employees themselves. It is essential that companies have effective internal processes that allow these expenses to be reported and financed in an agile and transparent manner ”.

A study prepared by Pleo, in which more than 3,000 financial executives were consulted, places Spain last in Europe in terms of efficiency in expenditure management processes. More than half of our companies (54%) spend more than two days a month managing their employees’ expenses, while in the UK this task involves, for the same percentage of companies, less than 8 hours.

Telework, a generator of increased spending

Part of this lack of agility is due to the low level of digitization of these processes (only 30% achieve fully digital expense management). This is particularly relevant with teleworking and the new hybrid models, which also generate an increase in the expenditure of Spaniards related to work problems.

The lack of digitalization makes it difficult to manage these amounts optimally, while generating additional costs for companies. To excess of time devoted, accompanies a misuse of resources and talent. 38% of Spanish companies indicate that the management of personnel costs is a source of economic losses, a percentage reduced by half in countries like the United Kingdom (19%) or Denmark (20%).

In figures, manual expenditure control involves an average of three people and six steps, from receipt of a ticket to its inclusion in the accounting software. SMEs (or companies with less than 1,000 employees) spend on average 18.88 euros to process a simple expense report.

Moreover, in Spain these tasks are assumed in 62% of cases by managerial profiles, such as CFOs and CEOs, which prevents them from devoting their working time to other more strategic functions that contribute to development. Business. In contrast, in the United Kingdom, expenditure management is carried out in 43% of cases by managers and in 33% by junior profiles or trainees.

Report your expenses using technology

“Compared to other European countries, in Spain, there is a lack of modernization of expenditure management. We end up with outdated and complex processes, which generate losses for businesses. Technology has the ability to improve these procedures and make them more cost effective, while promoting a more transparent model and preventing workers from making company payments with personal money, ”concludes Aiyana Moorhead, Country Manager for Spain at Pleo.

In order to facilitate the adoption of its expense management solution among Spanish companies, the startup is offering its technology free of charge for three months. Regardless of the payment method used, Pleo allows employees to report expenses via its mobile application, where they are automatically classified and grouped by previously defined categories. In this way, a unified and orderly management of all movements is achieved, which facilitates the daily life of workers and companies.

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