How better expense management in the hospitality sector could help you retain staff

If you manage a business in the hotel, hospitality or restaurant sector, you won’t need reminding of the perfect storm that is affecting staff retention in this market. 

Workers returning to Europe after Brexit, the rising cost of input prices and the difficulty in sourcing new staff have all added to the burden of running a business, in what has long been regarded as a higher risk sector.

Recruiting new staff is difficult and there are practical challenges in retaining colleagues. At Expend we work closely with businesses in the hospitality sector and understand the problems faced. 

What are the problems with personal expense management in the hospitality sector?

One of the daily operational challenges is when staff are asked to incur work related expenses, and need to claim back these costs through a personal expenses process. 

These costs could include travelling to different sites, going to a training course, or the cost of work-related clothing or equipment. 

Traditionally, employees would pay these costs upfront, and receive repayment later. Some businesses do their best to manage this challenge with a petty cash process though this can have its own operational costs and risks. Read our blog on petty cash here.

In a sector where pay is often modest, we’re helping hospitality business find improved approaches to expense management. 

The Expend employee card provides a pre-paid card to approved users across your business. It provides a way of empowering your employees with an expense management card, whilst retaining full control of spending. 

What are the benefits of an expense management card?

An expense management card means that you can track everything and capture expense data in real-time. It means that your employees can charge specific expenses to the card, avoiding the need for subsequent claims. As importantly, it makes missing receipts a thing of the past.

This means that your employee is not out of pocket, and does not face personal cash flow issues whilst their expense claim is being documented, authorised and settled via payroll.

For the business, it means less time and effort in managing a paper-based expense process. It also provides a slick, technically smart solution which integrates purchases straight to accounting software such as Quickbooks or Xero.  

By using the smart technology, app and employee card from Expend you can remove the need for employee expense claims, and manage their vital purchases easily and effectively. 

The card operates on a single or multi-person basis, and provides an excellent solution for a single site business, as well as organisations which have staff working across multiple sites. 

You can set spending limits on the payment card, restrict ATM withdrawals or online transactions, and even block spending in certain sectors, such as pubs or bars - leaving no room for misuse. 

The card can also be quickly activated for new employees and deactivated for staff who leave. The Expend employee card also provides the impetus your organisation may need to modernise your current, clunky petty cash process. 

Plus, your employees don’t have to wait around to be reimbursed - two of the most common reasons for expenses not being reimbursed are losing the receipt or missing the deadline. Automating the expense process solves both these problems easily.

Disclaimer: This is not legal, accounting, or tax advice - it's simply a guide. If you need help, check with your accountant or contact HMRC directly.