Your employees can make or break your business success. You should aim to keep them happy, but how do you balance that with your business objectives? One of the ways to empower your employees for more success is using a small business credit card. Giving them their own credit card can boost employee morale, helping them to be more effective workers who require less micromanagement. They'll also appreciate the trust you put in them.
Does Your Business Need to Boost Employee Morale?
To be frank, most businesses do. You’ve probably read about the Great Resignation, a current economic business trend that began around July 2021, when the U.S. Bureau of Labor Statistics reported 4 million Americans had quit their jobs. Most believe it was first reported in the United States, but the phenomenon is also being seen in the UK and Europe.
Employers need to address the factors that might be causing employees to resign in their droves. While we don’t have a definitive answer to why it’s happening, experts suggest a number of reasons. Some of these reasons unfortunately, are motivators that employers have little control over, like people reassessing career/life paths after the pandemic.
But, as a small business, you want to be seen as an attractive employer to work for, whether to existing employers or potential new hires. And there are ways you can boost employee morale to do that, with trust as a key element.
The 2021 Edelman Trust Barometer states that only 61% of global employees say they trust their employer. And do they feel trusted in return? When employees don’t feel trusted, they’re more likely to want to leave.
Even if they stay, they’ll be less productive and feel less loyalty to their employer. On the other hand, employees who do feel trusted by their employers demonstrate much better performance.
How Giving Employees Their Own Small Business Credit Card Builds Trust
It’s one thing telling your employees you trust them, but how about going one step further and “putting your money where your mouth is”. Showing your employees you trust them is critical to them understanding and believing you do trust them. But how?
Traditional expense management, where employees spend their own money, and the business reimburses them, doesn’t particularly engender trust. Expense claims are often scrutinized and subject to rules, and there’s always the option for an employer to deny expense claims.
Employees not only have to account for every penny they spend (and remember the business’ rules and spending limits!), they also have to make sure they have enough funds to cover their expenditure in the first place.
Being trusted with their company's money by way of a small business credit card is much better for employee morale and, ultimately, employee productivity. Not only do business credit card holders feel more trusted, they don’t have the inconvenience of paying out of their own pocket, and requesting reimbursements later.
Of course, there can be a fine line between showing your employees you trust them by issuing them with small business credit cards, and not overstepping your budget. Employee per diem cards can be the answer to this.
What are Employee Per Diem Cards?
Per diem, or ‘per day’ in Latin, is money allocated daily for employee expenses (such as food and lodging while traveling). Issuing per diem cards empowers your employees to spend without having to worry about claiming expenses back, but helps you manage your budgets.
Giving your employees their own small business credit cards, whether per diem or without restrictions, can be beneficial for everyone. By letting them pay for their business expenses without having to pay themselves or reimbursed or dip into petty cash, you’re showing them that you trust them and you’re saving time and money on cumbersome expense processes.
Capital Tap Business Credit Cards Can Help Companies of Any Size
Capital On Tap offers the ability to control employee credit card parameters for more security, protecting you from unauthorized spending on expenses, so you don’t have to worry about losing control of your business spending. Where some business credit card providers have a limit on how many cards you can issue, Capital on Tap can provide an unlimited amount of employee credit cards to your staff.
Find out how the Capital on Tap Business Credit Cards can help empower your employees and show your trust in them while safely keeping control over your budgets.
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