Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Mike Waters' Blog: 26 May 2009 - Let fairness prevail
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Mike Waters' Blog: 26 May 2009 - Let fairness prevail

Date: 26 May 2009

Mike Waters is head of market analysis at Arval

Talking about expenses at the moment is a bit of a touchy subject with the credibility of our members of parliament taking a public battering. But as Westminster rallies to get its house in order businesses up and down the country continue go about the task of efficiently administering employee expenses on a daily basis.

One such expense is staff travel, and in particular fuel, which can be an ambiguous one because it can be difficult to monitor. Under a pay and reclaim system drivers total up their business mileage and submit it to the company. While most drivers operate fairly, under this system there aren't too many checks and balances in place so the temptation does exist to add a few miles here and there.

Research from expense management company GlobalExpense shows that a fifth of employees admit to having exaggerated their expense claims, with business mileage the most likely to be inflated. This is something that organisations must address, especially in the current economic climate.

However, blame can't simply sit with employees as it is the system that causes the problem. In many cases drivers are the ones who lose out as the mileage rate paid by the employer doesn't always cover the actual car and fuel costs. In this case, while it can't be condoned, it's hard to blame drivers for trying to break even on expenses they have incurred on behalf of their employer.

With this in mind, implementing a fuel card policy should be an attractive option, no matter how big or small the fleet is. It allows the employer to monitor driver mileage and reimburse them the correct amount for their fuel expenditure, taking any uncertainty out of fuel claims. The mileage capture system and subsequent management reporting that fuel cards provide means that the company has full visibility of the business mileage that their drivers are clocking up, not to mention reducing time and effort spent on administration.

Giving drivers exactly what they are owed, no more and no less, as well as stripping out some of the hassle associated with expenses has to be a good thing. It is crucial that fairness prevails for both companies and drivers. No employee should be left out of pocket for a journey that they took on business and companies shouldn't have to pay over the odds for business travel. Fuel remains a major cost of vehicle ownership and one of the major fleet expenses so it is a crucial one to control, especially in the current economic climate.



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