As a result of these issues, Emburse warns of a looming “Spendageddon,” a point where finance leaders lose spend control because of the tension between their practices and employee needs.
Among the findings:
62% of employees reported that they are “somewhat” or “very” concerned about their personal finances.
40% reported incurring fees (overdraft, excess or late payment) or interest on a personal credit or debit card because of a business purchase.
19% reported incurring interest on a personal credit card due to late reimbursement from an employer.
19% have had to delay purchases or payments while waiting to be reimbursed.
Further, employees report experiencing higher expenses as a result of their employer’s return-to-office (RTO) policy:
27% of employees have seen increased commuting expenses.
20% of workers report increased food expenses.
12% have had increased child care or pet care expenses.
13% reported having to move to different cities to comply with their company’s return-to-office mandate.
Adriana Carpenter, CFO, said that employers can and should lessen the burden on employees without compromising their own need for efficiency. Strong corporate spend and virtual card policies, she said, keep employees from having to dip into their personal finances. Expense automation speeds up reimbursements, said Carpenter, so no one has to incur fees or interest; it also gives employees greater visibility into policies. That in turn builds trust, which improves productivity.
Failing to address the tension between employees and finance departments is a mistake, said Carpenter, who added, “to describe it as ‘Spendageddon’ might sound dramatic, but, for many, the consequences of inaction will be keenly felt.”
