As hybrid and remote work continues to become the norm, workplace locations, habits, procedures and policies are changing rapidly. And the tools and processes that organizations use to reimburse employees for their expenses—vehicles, devices, home offices, transportation, everything—might not keep up.
Organizations saddled with multiple legacy compensation providers and inefficient manual processes can struggle to keep pace with changing market conditions, emerging hybrid-workforce expectations, and ever-changing compliance requirements. This can prevent leaders from making decisions that can help their companies grow. Customers also notice when these organizations’ competitors are better positioned to deliver what they need.
But some organizations are optimizing their resource allocation by implementing simple, flexible, scalable compensation and applying real-time data analytics to help them identify problems and improve data-driven decision making. Updating these processes and platforms helps them reduce costs and maximize reimbursement spend without disrupting their workforce. Their solution is software-as-a-service (SaaS) tools that reduce administrative burdens, seamlessly identify trends, drive intelligence, ensure tax compliance, and flag compliance issues across markets and regions.
Transition to seamlessness
A medium-sized delivery company relies on drivers who use their vehicles to complete their errands. After adopting a low-cost workforce management system to monitor reimbursements, the company quickly discovered that onboarding each new driver to the platform was often a multi-day process that required the company to perform many manual administrative tasks. It was a risky scenario because employees would not be compensated if any information was entered incorrectly. “The point of this solution was to make sure our drivers were compensated,” says the company’s chief operating officer, “and that didn’t happen.”
The organization made a seamless transition to a scalable, flexible, streamlined SaaS compensation system. Adding new drivers has become a simple process. All drivers are accurately registered and paid. “No one misses a refund,” says the operations manager, and costs have dropped by 30%.
A beer and soft drink distributor in Louisiana once provided company cars to its salespeople. These employees had long workdays, each visiting about 15 accounts a day, and employees were expected to drive their cars home after work. Combined, these activities put up to 20,000 miles on the odometers of company vehicles annually.
But the company learned that drivers had a hard time treating the cars in this fleet. Frequent accidents and inconsistent maintenance resulted in exposure to corporate risk and liability. And company leaders believed that employees underestimated the benefits of their car.
As the organization implemented a policy change for its employees to drive their personal vehicles rather than company cars, it implemented a compensation platform that quickly made managing current programs user-friendly and easy to navigate.
The system provider managed all communications to launch the program on the new platform and performed administrative duties, verifying that all drivers were insured and compliant with company policies. The change also created a welcome cultural shift. Today, when employees drive and maintain their personal vehicles at work, the company’s liability is greatly reduced and maintenance costs are no longer an issue.
Brewing efficiency
DG Yuengling & Son, a Pennsylvania fixture that is America’s oldest brewery, has long used a mileage-tracking app to reimburse its sales staff for their trips. But its system was clunky and often inaccurate, leading to wasted time as sales reps manually updated their travel records.
Company leaders knew the brewer needed to modernize its reimbursement platform, but were hesitant to potentially disrupt legacy workflows without being sure the new solution would deliver a real improvement.
But Yuengling adopted a user-friendly, highly accurate platform that was easy to integrate with its expense management software, freeing its sales team to focus on sales rather than manually entering mileage into the old system with inefficient GPS tracking. After the switch, 92% of brewery platform users said the new tools saved them significant tracking and reporting mileage or helped streamline their operations and eliminate manual processes.
A new tool for growth
In a challenging economic environment with a persistently tight labor market, organizations must make critical decisions to optimize growth, earnings and culture while retaining their best talent. Researching and implementing your compensation plans can help your organization make decisions that help both your employees and your business thrive.
Learn how Motus can help your organization build your compensation plan.