Why Employees Hate Expense Reports

Why Employees Hate Expense Reports

Business leaders have to be very aware of employee happiness and satisfaction right now. The employees are ultimately at an advantage, after years of not being in that position. Unemployment is low, there are serious skills shortages, and human capital is a big concern for most employers.

Employers need to be able to source skilled talent, and once they get those employees, they need to be able to keep them.

Employee satisfaction is a major priority, but there are still some things employers are doing that create frustration, lower production, and satisfaction, and make their employees feel resentment.

Research has shown that some employees would quite literally rather be on trash duty than fill out expense reports.

One area that employees generally hate is bureaucracy, and within that larger concept, expense reports seem to be a major point of contention. Why is it that employees hate old ways of expense reporting so much? How can employees and businesses benefit from automating expense management?

Fear of Mistakes

Most employees are already under enough stress, and that’s compounded when they have to fill out manual expense reports through an outdated process. Most employees aren’t really well-trained on expense reports, but yet if they make a mistake, it can cost them their job.

With old, manual expense reports there are plenty of opportunities for human error. Plus, most employees lose receipts, which is natural. The vast majority of employees report having messed up on their expense reports several times throughout the year.

This causes anxiety for employees but also costs businesses money.

Slow Reimbursements

Even after all the time it takes to fill out expense reports and get the documentation together, it takes even longer for reimbursements at many businesses that aren’t using expense management software.

It can make for some pretty angry employees when they’re not receiving reimbursements promptly.

Employees who are concerned with slow reimbursements often feel like they’re responsible for providing a loan to their employer. Employees often also report having difficulties paying their own personal expenses as they wait for business expense reimbursements.

Loss of Productivity

Employees want to be focusing on the big ideas of their jobs. They want to be creative and innovative, and they want to maximize their productivity.

All of those objectives are sidelined when they’re bogged down with unnecessary clerical work. Filling out expense reports has no business value to the employee, beyond getting reimbursement and checking a box.

It’s causing a loss of productivity, and it can be a distraction to employees.

Avoiding Opportunities

Surveyed employees have said they have missed out on professional development opportunities like various trainings or conferences because of their employers’ expense management process.

At some companies, it is so cumbersome that it either makes it so that employees can’t attend these beneficial events or they’re not willing to because of the expense reports that will be waiting for them at the end.

Millennials are particularly sensitive to the hurdles of outdated expense management because they’ve grown up in a tech-driven world. If you want to find an excellent and often overlooked way to improve employee satisfaction, it may be time to take a look at expense reports.

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