mobile bill reimbursement

How to Manage Employee’s Mobile Bill Reimbursement?

By: Sunder Singh
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For decades, businesses of all sizes and types have faced the challenge of managing their employees’ mobile bill reimbursement process. With mobile being so popular today, the problem becomes universal.

Physical bills and the long chain of claim process complicate the reimbursement procedure. Mobile services make the telecom expense management complex than it used to be because multiple services, like text, internet, and phone calls give rise to multidimensional problems to the entire expense process. Here are some reasons:

  • Every employee has a smartphone, and the reimbursement process includes plenty of physical bills.
  • There is no philosopher’s stone to verify the genuineness of the bills.
  • There is not any streamlined process. Employees send the bills anytime, and the data need to be entered manually.
  • Usage caps, usage charges, and plan details differ from one operator to another.
  • There is not a straightforward method to assess the cost of mobile usage against the benefits.

Though bring your own device has become a common practice, a lot of enterprises struggle with the financial side of this model. Cost control is a common issue. Employees expect compensation for using their devices at work and companies adopt a variety of approach to make clean how much they intend to cover their users’ mobile bill.

Here are some common strategies businesses adopt for mobile bill reimbursement of their employees.

By far, fixed amount is considered the easiest and, well, widely accepted approach. It works just the way it sounds. Users approved for mobile bill reimbursement receive a fixed amount of compensation, usually on a monthly basis which is intended to cover the work expenses. An organization assesses a monthly rate for essentially renting employee’s own device. An approved service plan is another factor that determines compensation. Usually, a company pays around 35% to 55% of an employee’s mobile bill. A fixed amount satisfies all the parties involved in the reimbursement process. However, even with this approach, the reimbursement process is complicated as it involves submission of bills and involves many departments, from accounts to IT which add extra expense.

Some companies cut down the expense by quarterly submission of the bills. Some companies even offer their employees to submit all their bills once a year.

Fixed percentage is a slightly different from fixed amount model. Through this approach, workers are paid a set percentage of their monthly wireless bill. This fixed percentage is usually assessed by estimating the average balance between personal and business use. The prime benefit of this approach is that it is more adaptable. As mentioned earlier, employees have different mobile plans and operators which is difficult to streamline. However, with fixed percentage, it is possible to attain a certain level of uniformity. The major drawback of this approach is it involved lots of work; organization needs to verify every employee’s mobile bill in order to calculate how much to reimburse.

To simplify the process, some companies build an internal system where workers get the reimbursement by answering the questions about their travel, cafeteria expense, medical bills, etc. The manager of the employee decides whether the employee is eligible for reimbursement. Eligible employees receive the reimbursed amount either monthly or quarterly basis. Payment processing is done by collecting the data from the internal system which employees use to apply for reimbursement and runs a report against HR database, after which reimbursement gets approved and processed without paperwork.

for mobile bill reimbursement

Actual use is another most involved approach for mobile bill reimbursement. It is usually done through third-party service provider which tracks all usage, like voice calls, messaging and data and assigns usage as personal or business. However, this approach is too complex to keep track off.

With advanced technology, the digitized approach has become the new popular way for mobile bill reimbursement. It is card and app-based solution which enables corporates to get rid of countless papers and bills. Through this solution, employees can submit their claim digitally from any place. With app or web, communications claims can be tracked. From mobile to internet, multiple bills can be reimbursed directly through app.

The digital solution for tax-saving reimbursement is the need of the hour, and it has greatly reduced the workload of HR, accounts and IT department of an organization. It allows sending tax exemption grants electronically. Piles of papers and bills no longer remain involved. In addition, no manual checks are required to verify employees’ bills. In a nutshell, companies can save up to 90% of their time and resources spent on reimbursement process.

Praising the digital mobile bill reimbursement solution by Zeta, Nagarro Human Resources Lead, Vishwanath Gambher says,

“The best part about Zeta is no storage, no procurement. You just order Zeta online and you will get the amount credited in employees’ accounts within seconds.”

With easy digitized solution available, it is time to get rid of long chain of reimbursement process and reduce the workload of expense management department.

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