Employees are reluctant to use their own credit cards for work expenses, as cost-of-living concerns force them to rethink their finances.
What’s more, many companies have been slow to respond to demands for help, despite an increase in expense fraud also related to current economic conditions.
Research commissioned by optimisation specialists Emburse, conducted by Censuswide, examined expense processes by questioning 1,242 employees preferences and found that 16-34-year-olds were most likely to prefer corporate cards over personal cards, at 55 per cent – the largest of any age group.
The survey also revealed that just six per cent of employees at mid and larger size (500+ employees) companies are required to use corporate cards.
With companies experiencing soaring cases of fraud due to cost of living hikes, most organisations continue to shun corporate cards. This is despite business cards’ ability to minimise the risk of wasteful or fraudulent claims, while effectively controlling and tracking businesses spend.
Among other findings, 94 per cent of young employees cited long reimbursement time, the risk of late fees, preference for not mixing personal and business spend, and streamlining the expenses process, as the key reasons for wanting a corporate card.
And despite increasing need for visibility over finances, only one in 10 were required to use corporate cards for business purchases.
Surprisingly, there was less appetite for personal card use for air/hotel points for personal leisure and travel – only 10 per cent cited this as a reason for personal cards. There was also a difference between mid-size and larger companies Currently, only 6 per cent of employees working at enterprises with 500+ employees are required to use a company card for expenses
Among small to mid-size businesses figures remain low for corporate card requirement: 10-49 (12%), 50-99 (9%), 100-249 (12%) and 250-500 (14%).
Jamie Anderson, Chief Revenue Officer at Emburse said: “When almost half of young workers say that the cost of living makes them want a company-paid card for their expenses, it’s something that companies should seriously consider. It’s an easy – and free – way to show employees you care.”
“Giving employees credit cards also makes sound business sense. By setting restrictions on how and when, and where they can be used, it’s much easier to control purchases in advance, instead of having to wait for expense claims to come in after the fact. They also give much easier, accurate and timely insight into corporate spend, and the rebates that come back will also benefit the corporate coffers.”