Meta mayhem | Companies using tech to crack down on corporate card misuse

Companies using tech to crack down on corporate card misuse

As workplaces grow more vigilant about enforcing rules, employees worldwide are facing increased scrutiny, and company credit card use is now coming under scrutiny.

From expense monitoring to digital surveillance, companies are using cutting-edge tools to weed out non-compliance and safeguard resources.

Cracking down on company card misuse

Companies are leveraging technology to monitor and control employee spending, and “spend management” platform Payhawk, is at the forefront of an effort to help restrict spending on company credit cards by time, location, and purchase type. The US Director of Payhawk, Katie MacKillop, noted an uptick in requests for customized features that flag suspicious transactions and notify finance teams in real time.

“Employers are demanding more oversight to ensure compliance,” MacKillop said. Features such as daily transaction limits and pre-approved funds are becoming commonplace to prevent unauthorized expenses.

At Meta, staff were recently dismissed for misusing meal stipends. The firm provides a daily allowance of $25 for meals in offices without cafeteria services, but some employees used the funds to buy personal items like toothpaste and tea, leading to terminations and reinforcing the company’s commitment to enforcing policies.

Other firms are also adopting stricter enforcement strategies. Ernst & Young reportedly fired employees for simultaneously attending multiple virtual training sessions, a breach of professional standards. Meanwhile, Target terminated staff for using their employee privileges to skip customer lines and purchase high-demand products, such as Stanley water bottles.

Such measures often serve dual purposes by maintaining compliance and reducing headcount without resorting to costly layoffs.
HR consultant Suzanne Lucas said: “When companies need to trim staff, tightening rules provides a reason to terminate employees while avoiding severance costs.”

Balancing control and workplace culture

While strict enforcement might deter misuse, it risks alienating employees if perceived as excessive. A study by the Chartered Institute of Personnel and Development (CIPD) revealed that 18% of workers considering a job change prioritize improved workplace benefits over job satisfaction or career progression.

The challenge for employers is to ensure compliance while maintaining morale. Overly restrictive policies could backfire, driving talented staff to seek more accommodating workplaces.

Whether monitoring keystrokes, tracking expenses, or enforcing perk policies, companies are increasingly leveraging technology to foster accountability. For employees, adhering to guidelines is no longer just about professionalism, but job security.

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