The Hidden Cost of Unclaimed Business Expenses

A recent study carried out by WalkMe, a digital adoption company headquartered in San Francisco, has revealed the surprising number of employees who neglect to claim business expenses to which they are entitled. The findings indicate that an astonishing 50% of global staff fail to submit reimbursement claims for work-related expenses, resulting in unclaimed amounts that total billions of pounds.

The research uncovered that the average employee leaves behind approximately £30,000 in unclaimed expenses. Furthermore, 48% of respondents cited job stress due to their work expenses, while 28% claimed that the unclaimed amount was negatively impacting their financial situation.

The reasons for neglecting to claim expenses varied across different regions and age groups. Many participants reported facing challenges when attempting to make claims, primarily due to the time-consuming and burdensome paperwork involved. In fact, a third of individuals blamed their company’s complex expense reimbursement process for their reluctance to claim expenses.

The study also highlighted some interesting observations regarding national differences in attitude towards expense claiming. It was found that Germans experienced the most stress in this regard, while Americans left the highest amount of money unclaimed, with an average of £24,000. On the other hand, individuals in Singapore left the least amount behind, with an average of £16,500.

The reluctance to claim business expenses has been identified as a significant source of job dissatisfaction and stress among employees. With cumbersome expense reporting processes, workers often feel discouraged and dissatisfied with their jobs, leading to negative impacts on their overall productivity and wellbeing.

Furthermore, the research indicated that Australians were most likely to forget about filing expense reports, with the British closely following suit. Interestingly, individuals in the 35-44-year-old age group were found to be the most likely to leave money on the table, while the majority of those aged 55 and above consistently filed their expense claims. Additionally, six in ten respondents agreed that AI and productivity tools have significantly improved the process of expensing.

Chelsea Pyrzenski, the Chief People Officer at WalkMe, emphasised the significance of simplifying the expense reporting process. She highlighted that the cumbersome nature of expense reporting can lead to dissatisfaction among employees, causing potential compliance and fiscal reporting issues for businesses. Pyrzenski stressed the importance of making the expense reporting process easy, efficient, and seamless for both employees and employers.

She further suggested that Digital Adoption Platforms, such as WalkMe, when used in conjunction with leading expense management systems, have demonstrated the ability to alleviate expense report frustration and enhance the overall employee and employer experience.

The study’s findings have drawn attention to the hidden cost of unclaimed business expenses and highlighted the need for organisations to streamline their expense reimbursement processes. By doing so, they can not only improve employee satisfaction and reduce stress but also mitigate compliance and fiscal reporting risks.