[Switch to the current edition of Connection »]

Expense Claims

Don't worry, just stick it on expenses

How many times have we heard the phrase “don’t worry, just stick it on expenses”? In this month’s poll, we’re asking you to be honest – albeit anonymously – about whether you’re honest about your claims. Or do you just “stick it on expenses” like many of our MPs?

The furore surrounding the claims of our Members of Parliament has put expenses firmly in the spotlight. A survey just last year revealed that 22% of UK employees are happy to fiddle their expenses. That would be approximately 6 million workers running up a bill worth billions to UK PLC.

60% of those polled by hotel chain Travelodge claimed that “all of their colleagues were doing it”, and 50% believed it was a legitimate way of making extra money.

While the more extravagant claims grab the headlines, it is the bread and butter expenses that have the most impact over the long term, and are often the hardest for businesses to contest, or even to pinpoint. Petrol, train tickets, food and drink are all regularly exaggerated, providing an extra burden on Finance departments.

Expense fiddling is particularly common where:

• The rules are not clear enough
• Expenses take too long to be reimbursed
• There is no automated system in place to flag up false claims

Not only are false claims proving damaging to businesses, the cost of processing those claims can rise to as much as £45 per claim. In today’s delocalised business environment, this is something no organisation can afford.

The other aspect to be considered is that when expenses take several weeks, or even months, to be reimbursed, employee engagement suffers, and the likelihood of claiming a little extra – to offset the long wait – rises. It is therefore imperative that your business has the system and processes in place to both pinpoint irregular expenses activity and reimburse legitimate expense claims quickly.

Do that, and you’ll never hear the phrase “don’t worry, just stick it on expenses” again.