Insurance Pro Hub

The Insurance Bars Are On Me!

Why Time is a Factor in Employee Reimbursement Collections

Why Time is a Factor in Employee Reimbursement Collections

Credit: Pixabay Via Pexels

While there are many situations that require a debt collector with a specialty in employee reimbursement, they all have one thing in common: a current or past employee owes money to your company. Employees sometimes take advantage of an employer, which can drain company money.

Ironically, the company can then lose time and energy by trying to right the wrong themselves, which only makes a bad problem worse. Let’s check out more situations that collection agency companies can resolve so companies can spend time more effectively.

Tuition or Continuing Education Reimbursement

Some companies offer employees opportunities to learn more about their industry to improve themselves and the business they work for. However, what happens when this employee takes advantage of a generous program only to quit the company the next day?

Companies want to help their employees better themselves and sharpen their skills because it’s a win-win situation. But that changes when the employee takes their improved self to another business or possibly even a competitor.

If you have laid out considerable expenses to pay for an employee’s education who then left the company very shortly after, you may be entitled to recoup some or all of the costs. Collection agencies do this for you, so you don’t need to squander more time or money interpreting the law or making tough phone calls.

Unauthorized Regular Expense Items

Companies give some employees corporate credit cards to cover expenses that aren’t supposed to come out of their personal accounts. However, sometimes employees take advantage of this and misuse the card to pay for personal indulgences that have nothing to do with the business.

In such cases, the company shouldn’t be on the hook! Collection agencies handle this so you can get back to business without the headaches or financial drain.

Unauthorized spending on a corporate account is essentially a type of theft. True, sometimes there are honest mistakes which need to be resolved. Either way, call a professional collection agency to handle it quickly and effectively.

Overpaid Salary

Overpaid salaries can occur in different ways. Sometimes a company accidentally pays an employee above and beyond their salary because of a technical glitch. Perhaps the company issued the correct level of compensation, but then that employee failed to live up to their end of the bargain and deliver what they were supposed to.

In such cases, companies can compact their losses by trying to recoup those dollars themselves. It’s cheaper and more effective to hire the top employee debt collection agency whose experienced specialists excel in this. Even if you manage to succeed, it wastes time and likely come at a higher cost than it would have otherwise.

Companies can be put in a tough position when they’re forced to pick between two bad options: should they cut their losses and let employees who took advantage of the rules get away with it, or invest in recouping the money? Thankfully, collection agencies can step in so businesses don’t need to waste their time.