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Companies have many good reasons to offer employees reimbursements. It helps workflow and keeps up positive vibes for employees. However, sometimes employees get confused about the process or try to claim expenses improperly, and this makes managing and recovering debt time-consuming and stressful.
Employee reimbursement doesn’t have to be a drain on your company if you hire professionals to handle it. Let’s take a closer look at more of the situations when professional debt collectors help.
1. Employees Make an Innocent Mistake
It’s possible for employees to make an incorrect business expense claim and expect compensation where none should be given. Maybe they are right to expect compensation but go about the process incorrectly.
Either way, employee expense reimbursement becomes an extra drain when companies need to review their processes to see what went wrong. Sure, people at your company could recover and manage this expense, but it takes their focus and time away from where they’re really needed.
Professional debt collection agencies can recover the money that ethically and legally belongs to companies without bruising their relationships with employees. If a business tries to get this money back themselves, they might succeed, but if the process rubs employees the wrong way, it could be a pyrrhic victory.
If an employee makes an unauthorized expense because they were genuinely confused, it should be corrected, but they shouldn’t be made to feel guilty.
2. Companies Can’t Recoup the Money
Just because companies are owed money from employees doesn’t mean they’ll get it. There’s no guarantee HR will succeed just because they launch the process correctly and justifiably.
Professional debt collection agencies have better track records. Indeed, professionals get better results than companies do on their own, and some yield considerably better results than others!
What happens if, let’s say, an employee avails themselves of funding for ongoing training and education but then abruptly quits? You don’t want to pay to train an employee a rival can then hire! What if they move to another state or ignore requests for repayments?
Professional debt collectors know which levers to pull and have strong relationships with all three major credit bureaus.
3. They Simplify Maintaining Relationships
Asking customers or employees for money can be awkward. It can be a difficult conversation that changes things moving forwards, even if you get the money. If the recouped money comes at the expense of loyalty, there’s a cost.
Let professional debt collectors take this off your plate, so you can focus on running a business instead of looking backwards, trying to get money that should already be secure in your accounts. You’ll reduce internal administrative burden and keep your employees and customers smiling.
Everybody wants clarity and control over where their money goes. Professional debt collectors help keep everyone on track.
Even companies with personnel dedicated to this sort of thing are much better off outsourcing it to professionals who can free them up, improve their bottom line, and maintain everyone’s positive feelings. Consider hiring one for your company.