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If it were possible to run a company without hiring people, business leaders would do it. Salary and wages are one of the largest expenses a business face. However, companies need the labour, skills, and all the other intangibles that employees bring to the table.
That doesn’t mean they should be paid more than the agreed rate. If companies aren’t careful, revenue can slip away to employees in unapproved ways. Let’s check out these sources of revenue drain and how professional debt collectors can prevent it.
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Improper Business Expenses
When employees travel for work and pay for work expenses out of their own pocket, it’s only fair that they receive compensation. Why should they, not the company, be on the hook for paying business expenses? This is especially true when travel outside usual business hours is required.
It’s wise for companies to clearly outline their protocols for business expenses so employees don’t accidentally make a mistake during this process. Obviously, employees shouldn’t exploit the situation and try to charge personal expenses to the company, but not every improper travel expense is malicious.
Still, professional collection agencies can help businesses recover employee reimbursement debt, whether due to an unintentional slip or deliberate fraud.
Training and Ongoing Education
Many employers pay for their employees to undergo more training and education because it lets them offer better service to clients and customers. From the employee’s perspective, they get a free skills upgrade. In other words, everyone wins.
However, companies shouldn’t have to pay to train somebody who doesn’t work for them anymore. That’s why it’s a problem when employees take the training, then abruptly quit. Suddenly, the employer needs to pay to train someone else, and the training they paid for could potentially benefit a competitor!
Professional debt collectors can help businesses recover any money they’re legally owed related to ongoing training and education.
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Accidental Overpayment
In the classic board game Monopoly, when the bank makes an error, the player gets to keep the money. In real life, if a company accidentally overpays their employee, they aren’t entitled to those funds.
However, it’s also a delicate situation because the employee did nothing wrong, but the business needs to ask for the money back without making things awkward or uncomfortable. They don’t want to worsen relations moving forward, so the employee feels comfortable at their place of work.
Hopefully, not much time has elapsed between when the overpayment was wrongfully issued and when the company noticed the glitch. Professional debt collectors help right the wrongs without creating negative morale among employees. The best ones are trusted third parties who always act courteously and respectfully.
Businesses need to compete against rivals in a tight, ruthless space. They can’t afford to pay employees more than what both agreed to. As vital as they are to your operation, consider hiring a professional debt collector to prevent excess money from slipping away to your employees through unauthorized expenses, glitches, and ongoing training for people who no longer work for you.