I would like to ask a problem by giving one live example which happened with me today.
The query is regarding sales personnel. Most companies provide petrol allowances to their employees, but we are not providing personal transportation facilities or allowances. We provide only to sales personnel whatever they are using for marketing or sales. The method is: At the end of the month, they provide all bills to the accountant and receive money from him. The company sets one limit, say for example 1500. Beyond that, no one can receive extra money depending upon their category.
A few days ago, one sales boy (A) came to me and said his monthly use of petrol is 1700. At the end, he said, "I can understand that the company is giving only 1500, or I can say 200 is for my personal transportation, so I don't bother about that 200." But now, today another salesperson (B) was making a voucher of his bills, and the total was 1160, including his personal use of transportation from home to the company. A was beside him, monitoring all the process of B, and he thought that if B could cover all personal expenses from the company, then why should I not. So today, he directly went towards the owner and demanded to expand the allowances limit, asking for an extra 300-400 so he also can cover all money from the company.
But the question is not about whether to give him extra or not; he saw another and did something. In the future, anyone can do the same, which may create a problem for management. The problem is very simple, but I want a sound suggestion to change the policy. What can I do or how can I provide petrol allowance? We just want to provide an allowance for the expenses which employees are spending for the company, not for themselves.
Please suggest another method of counting their use or spending for the company because the company is operating on a very small scale and not incurring that much profit to provide welfare for them. We are also in a critical situation, incurring very nominal profit. I need to make a policy so that in the future, we may not need to focus on that issue.
From India, Jalalpur
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2The query is regarding sales personnel. Most companies provide petrol allowances to their employees, but we are not providing personal transportation facilities or allowances. We provide only to sales personnel whatever they are using for marketing or sales. The method is: At the end of the month, they provide all bills to the accountant and receive money from him. The company sets one limit, say for example 1500. Beyond that, no one can receive extra money depending upon their category.
A few days ago, one sales boy (A) came to me and said his monthly use of petrol is 1700. At the end, he said, "I can understand that the company is giving only 1500, or I can say 200 is for my personal transportation, so I don't bother about that 200." But now, today another salesperson (B) was making a voucher of his bills, and the total was 1160, including his personal use of transportation from home to the company. A was beside him, monitoring all the process of B, and he thought that if B could cover all personal expenses from the company, then why should I not. So today, he directly went towards the owner and demanded to expand the allowances limit, asking for an extra 300-400 so he also can cover all money from the company.
But the question is not about whether to give him extra or not; he saw another and did something. In the future, anyone can do the same, which may create a problem for management. The problem is very simple, but I want a sound suggestion to change the policy. What can I do or how can I provide petrol allowance? We just want to provide an allowance for the expenses which employees are spending for the company, not for themselves.
Please suggest another method of counting their use or spending for the company because the company is operating on a very small scale and not incurring that much profit to provide welfare for them. We are also in a critical situation, incurring very nominal profit. I need to make a policy so that in the future, we may not need to focus on that issue.
From India, Jalalpur
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Hi Kirti,
A simple method is to record the opening meter balance and closing meter balance of the vehicle used by the employee. You would have the employee's home address in your database, and based on that, deduct the distance he/she commutes between the house and office. Also, do a random check on the meter reading to avoid falsification.
From India, Bangalore
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A simple method is to record the opening meter balance and closing meter balance of the vehicle used by the employee. You would have the employee's home address in your database, and based on that, deduct the distance he/she commutes between the house and office. Also, do a random check on the meter reading to avoid falsification.
From India, Bangalore
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