Benefits Of A Managed Employee Allowance Purchasing Program

by Nancy Cardona on July 25, 2016

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If your employees are authorized or required to make purchases regularly for things like uniforms, travel, replacement parts, services, etc. it is a best practice to set up allowances. Allowance Purchasing Programs monitor how much an employee can spend, what they can spend it on, and the time period these rules apply to.  

Having programs like this come with many benefits. In this post we’re going to highlight the top four benefits of an employee allowance purchasing program.

It Limits Overspending

Perhaps most importantly, by creating an employee allowance program, you can easily limit the amount of spending that happens from employee to employee. Long gone are the days when your staff can overspend on their orders. Once you give them an allowance (setting it monthly, quarterly, annually, etc.), they’ll budget for things they need, and forgo the unnecessary items.

It Eliminates Incorrect Orders

Creating a program of this nature allows the employer to tailor the online store to  specific items that employees can (and need to) purchase. Now not only do they have an allowance, but they won’t be able to buy items that don’t apply to them.  This will save your business time and money by greatly reducing the hassle and amounts of incorrect orders and managing returns.

It Gives Staff Flexibility To Order What Is Needed, When It’s Needed

By giving your employees the freedom to handle their own orders, they have the autonomy to order items based on their allowance when, and only when they are needed. For example, a lineman might have a more urgent need for a flame retardant shirt because his ripped. His coworker, on the other hand, might not need to purchase that item as she ordered one last month. With this program, she’ll have the flexibility to order something else that she might need, or hold onto that allowance until it’s needed.

 

It Saves Management Time

Giving your employees the power to handle their own orders saves management hours upon hours of time. Prior to this program, managers would spend full work-days placing uniform orders for their team, and before doing so, they’d have to round up all the necessary information from every employee. That’s a lot of sizes, colors, product skews, etc., to juggle. On top of that, it was inevitable that something was ordered incorrectly.

 

Trusting your team with an allowance to order for themselves is not only easy to manage, it’s beneficial to everyone in the company. Employee allowance programs give your staff the freedom to order what they need, when they need it, it significantly eliminates incorrect orders and returns, it saves upper management time, and it will limit overspending.

 

For more information on kicking off your own employee allowance purchasing program, contact us today!

 

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Topics: Managing A Uniform Program, B2B Group Purchasing