Would you like to pay for business expenses with your own money? This is how employees do it in 94% of companies
As digitalization and innovation in business processes advance, the use of technology to serve employees continues to have major gaps. In Spain, in most companies (76%), less than half of the workforce has a company credit card or other company payment system, forcing employees to pay their costs. working expenses with their own resources.
This emerges from a study prepared by Pleo, a fintech startup created to simplify the administration and management of company expenses, which indicates that in 9 out of 10 Spanish companies, workers are faced with job purchases with personal money. In addition, in 73% of cases, it happens frequently. This is due to a lack of modernization of payment and expenditure management procedures, which maintain a completely linear and inefficient structure.
In most companies, the process is as follows: employees first make the purchase, for which they must keep the receipt and then present it with an expense sheet to the accounting department. This team reviews, classifies and approves each expense; which occupies, on average in Spain, more than two days per month for 54% of companies. Finally, employees receive the amount they have advanced, as well as their payroll for the following month.
“This is an outdated and time consuming process that hurts employees. With existing technology, there is no need for a person to have to use their own resources to pay for, for example, a taxi that they use to get to a meeting or any material they need to do their work ” , explains Aiyana Moorhead, Country Manager for Spain at Pleo. “In many cases, this creates pressure and embarrassment among employees, which can affect their well-being in the company and at work.”
A study by the neobank N26 indicates that on average, the saving capacity of Spaniards does not exceed € 182 per month; thus if they are added to their personal expenses, they must assume those of the company, this capacity is further reduced. At the same time, the spread of teleworking means that the costs traditionally assumed by companies are now incumbent on employees. For example, in recent months worker spending on the Internet and telephone has increased by more than 190%.
In addition to the discomfort that this can cause on the workforce, the lack of technological tools applied in this area also weighs on business processes: four out of ten Spanish companies indicate that the management of expenses is a source of economic losses for the company. .
Smart expense management solutions like Pleo manage to digitize and automate this entire process. With this, it is possible to avoid the use of personal money by the employees, to increase the precision and control over the total expenses and to lighten the workload of the finance teams, allowing them to spend these hours on tasks that really add value to businesses.