News: Performance Management
False expense claims costly to businesses
30 April 2008
“Lax procedures” implemented by business managers relating to expense forms can have a negative impact upon businesses, it has been claimed.
A recent survey conducted by Travelodge revealed that the average employee pockets an additional £17 each month that they claim, equating to £204 a year.
However, it seems managers are failing to deal with the problem s only eight per cent of people are caught and sacked for such fraudulent expenses.
Stephen Alambritis, spokesperson for the Federation of Small Businesses, urged businesses to ensure that they have ”tight” expense claim procedures, as failing to do so can have serious consequences.
“Any laxity starts to not only lose income for the business but also lax expense regimes can lead to lax employment procedures and lax health and safety procedures,” he warned.
The “culture” of a business needs to be one “where everything is recorded”, he added, noting that this ought to come “right from the top” of the organisation.
