Workers 'borrowing money' to cover expenses 

As the cost-of-living crisis takes hold of the country, a survey by PayCaptain, says that one in five are skipping meals, missing bill payments, or not buying day-to-day essentials due to being out of pocket while waiting to be reimbursed.

The company said the report highlights the  hidden mental and financial pressures staff are facing when it comes to covering expenses on behalf of employers and the pivotal role payroll plays in improving employee financial wellbeing. 
 
The research, which surveyed 2,000 British workers who have to cover business expenses, showed 40% have taken out loans or had to use credit cards as a result of paying for company expenses, with a further 37% remaining out of pocket after being reimbursed. 

The results further highlight how British workers are being put under increasing stress as a result of covering business expenses. 

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This affecting the lower-earning 16-24 age group, with one in six deciding to work from home and missing out on workplace-based learning as they can’t afford travel, the survey showed.
 
PayCaptain CEO, Simon Bocca said: “It’s shocking that UK businesses continue to expect employees to put themselves in challenging financial positions to cover company expenses, particularly in a cost-of-living crisis.

"Provisions need to be put into place to help safeguard workers when expenses are essential as clearly current archaic processes just don’t work. So many companies claim that their workforce is the beating heart of their operations, but this report shows that so many don’t offer anywhere near enough support.”
 
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One third of workers said that paying for company expenses impacts their mental health and makes them feel anxious, with the 16 -24 age group particularly vulnerable.  One in six say it negatively impacts their relationships, in addition to stress for paying for daily essentials. 

This issue has a knock-on effect on productivity in the workplace with 77% saying money worries negatively impact their work.

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PayCaptain has created a new instant expenses reimbursement feature, which launches this month.

Its CEO, Simon Bocca said: “In response to this situation, PayCaptain has created a new instant expenses reimbursement feature, which will remove the financial and mental strain for employees. The new feature is here as a solution to the crippling situation we’re finding many workers in, and allows employers to better support their workforce in a proper way.

"Employers can now reimburse employee expenses in real time - helping to streamline outgoings, and minimise wait time and stress for employees when it comes to claiming for expenses.”

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