A MORI research poll released today on behalf of Extensity, a leading supplier of Web-based workforce optimisation software, reveals that one in five employees admit to exaggerating business expense claims. According to Extensity this statistic indicates that companies are losing tens of thousands of pounds each year from their bottom lines and millions globally.
With an increasing number of employees working remotely and submitting expense claims, companies cannot afford to grow complacent. With one in twenty employees polled admitting to making false expense claims at some point, companies must surely begin to address how best to monitor expenses incurred by staff on all levels.
A survey by the Hackett Group, conducted in 1998, indicated that the average corporation processes 20,000 expense claims for every $1billion in revenue. If this equated to one claim per employee the research suggests that at least 4,000 could be exaggerated, whilst 1,000 could actually be false.
"We have always known that people have not always been honest with their expense claims. What is surprising is the sheer volume of such claims and how little companies are doing to combat it. A couple of taxi fares and a lunch, when claimed each month can soon build up, and that is just the tip of the iceberg," commented Brian Mort, vice-president European Operations, Extensity.
Mort continued: "This research should act as a wake up call to the thousands of companies who are failing to analyse internal costs adequately. These figures genuinely impact on the bottom line of all businesses. The old phrase ‘if you look after the pennies the pounds look after themselves’ stands good. The illegitimate claims may only be marginal, but it can soon mount up to impact directly on bottom line statistics."
Extensity suggests that companies genuinely looking to reduce the number of misleading expense claims should install software to assist in the process. Extensity provides a comprehensive software solution that addresses the needs of large companies looking to review all internal processes. The Extensity solution automates traditional time-consuming and admin intensive business processes over the Internet in order to increase the operation efficiency of any company. Expense reports, timesheets, procurement and business travel forms can all be completed via any Internet connected device and in accordance with pre-defined business criteria.
Extensity provides Internet-based workforce optimisation solutions designed to improve the productivity of employees across the enterprise and to enhance operating efficiency. Extensity's flagship product, Extensity Connect, transforms the way companies do business by automating routine and time consuming administrative tasks including management of: travel and expense, procurement and billable time so that employees can focus on higher-value core business activities. Extensity is now deployed globally in 40 countries with more than 570,000 seats licensed worldwide to 220 customers including: America Online (AOL), BT (North America), Cisco Systems, Four Seasons Hotels and Resorts, Genesys Telecommunications, Reed Business Information, Incyte Pharmaceuticals, Sybase and Excite@Home.
More information about Extensity is available on its web site located at http://www.extensity.com>
MORI interviewed 366 ABC1 workers who submit business expenses. Questions were placed on the MORI omnibus between 31st August to 6th September and 21st to 25th September 2000. This was followed up with 102 telephone interviews among business managers of companies with 500 or more employees between 2nd and 6th October 2000. All managers are responsible for agreeing/signing off expense forms.
For further information contact:
Chaz Brooks Communications
Tel: +44 (0) 1483 277 711
Tina Hou/ Diane Paternoster
Tel: +44 (0) 1932 796334
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