Employee Expenses Fall By Half With The Pandemic

by:

Business

According to a study by Rydoo, a Sodexo Group company, food and catering tickets have significantly decreased and invoices for the purchase of teleworking equipment rise

According to a study by Rydoo, an expert company in the management of company expenses and business travel, the expenses presented by employees to companies have fallen by half in Spain due to the impact of the COVID-19 pandemic. Spain is the second country in which reimbursement requests have decreased the most (50%), only behind France, where there has been a 75% decrease. In Belgium, the drop in expenses was 36%, and in the United Kingdom around 20%, with Germany (-9.6%) and Switzerland (-2.2%) being the most moderate decreases. The number of requests for reimbursement of expenses submitted in the six countries analyzed has decreased by an average of 43%.

With the objective of evaluating business expenses in Spain, France, Germany, the United Kingdom, Belgium, and Switzerland, Rydoo, which belongs to the Sodexo Group, has used the data collected by its solution for the management of expenses and business trips. To prepare the study, the data on employee expenses of more than 3,800 companies in these countries have been taken into account. Rydoo has compared the cost settlement data received in two periods of time: on the one hand, from January 15 to February 26, 2020, the pre-lockdown phase, and, on the other hand, from March 16 to on May 5, in full confinement, under the state of alarm in Spain. In total, 44,167 expense lines have been evaluated in the six countries analyzed.

More bills for purchases of teleworking devices 

Although the decrease in reimbursement claims is generalized in Spain, there is an increase in the expenses destined to make teleworking possible, such as software purchases, which grew 133%. Expenditures in this chapter grew notably in Switzerland (with an increase of 550%), in France (157%), and in Belgium (132%), while the growth is lower in the United Kingdom and Germany, which registered increases of the 28.5% and 14% respectively.

Draws attention to the section of expenses related to computer and office equipment (such as laptops, monitors, keyboards, etc.) and office supplies and stationery. These joint expenses increased as of mid-March only in Germany (9.98%) and the United Kingdom (1.78%), with a 63% decrease in Spain. In Switzerland (-73%), France (-54%), Belgium (-38%) this figure also decreased. It should be noted that, although the number of expenses recorded in computer equipment and office supplies decreased in Spain, the average expense per claim increased by 37%.

Less meals and catering

Regarding food orders and catering services, 60% less expenses included in this section were registered, although average expenses increased by 9.63%. These services have decreased in all the countries analyzed, by more than 80% on average. This trend is logical considering that currently meetings are held by videoconference or other telematic means. A chapter that stands out is that of pharmaceutical material, which reflects an increase in average expenditure of 72.53%, due to the purchase of masks, hydroalcoholic gels and protective gloves.

Although the expenses presented by the workers to the companies have decreased during the period of confinement, there has been no cessation. “Digitization and the ability to telecommute have allowed many companies to stay in business,” says Sebastien Marchon, CEO of Rydoo. “Given that working from home is a new reality that, in many cases, has come to stay, it is necessary to digitize spending tools to ensure the continuity of the activity, thus facilitating the claim for reimbursement of expenses by employees as the job of CFOs. Before the COVID-19 crisis, more than 80% of companies were still working with Excel sheets, paper invoices, and approval of signatures in writing. With the rise of telecommuting and the rise of digital meetings, this way of working can lead to bills being left unmanaged for a long time, delaying accounting and reimbursement processes. Digital management of expenses has become an essential element for companies in the new reality, ”concludes Marchon.

Leave a Reply

Your email address will not be published. Required fields are marked *