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re: How Would You Handle? Employee spends too much on company card. But is top producer...
Posted on 6/28/22 at 7:29 am to LSU1018
Posted on 6/28/22 at 7:29 am to LSU1018
quote:
I just don’t think you can avoid the situation bc it will only get worse.
just like a kid, he is going to keep pushing it to see what exactly the limit is
2
Posted on 6/28/22 at 7:29 am to I Love Bama
Bring it up in private. Don’t make a huge deal about it, but let him know $250 for a single meal is egregious and that it shouldn’t happen again.
Posted on 6/28/22 at 7:31 am to I Love Bama
This guy is going to quit and go to a competitor who won't care if he spends an extra $125 to bring in the business
This post was edited on 6/28/22 at 7:32 am
Posted on 6/28/22 at 7:31 am to Salmon
quote:Exactly.
he is going to keep pushing it to see what exactly the limit is
Just be transparent about it.
Tell him you don't really care.
Tell him it's being allowed and you know about it BUT limits are in place for a reason for the benefit of all (Christmas bonuses, etc) so while you are an understanding and flexible boss, rules are rules so you can be flexible to make exceptions so long as he abides by the new rules.
This isn't the wild wild west and he isn't Billy The Kid.
Posted on 6/28/22 at 7:35 am to I Love Bama
I've been on both sides of that equation and it is not an easy answer. Here are a few thoughts, not in order.
1. Is any of that going to customer dinners? I am generous with customers that (a) spend a lot, (b) are having problems with us IE late or warranty, (c) first order, (d) Christmas. I find this comes back around big time.
2. Is the employee frustrated? I find myself and other salesmen are more apt blow out the expense account when the main office is not keeping up. I would consider a discussion with your salesman about his satisfaction level. Is there any dead wood in the office? Are things late? Is the quality compromised? Is the customer happy?
3. If things are good and he just considers it justifiable to buy steaks based on his stellar performance, you have two options: (a) suck it up, it's better than paying two more employees and their healthcare and travel costs; (b) reinvent his comp plan. Give him a variable overall budget related to revenue, profit, days on the road, etc... rather than a flat per diem. You can build in many factors and benefits here other than per diem. You are essentially making him the owner/CEO of his own small profit center. If he wants to blow out $250/night on steaks, it comes out of his P&L and affects his comp.
This will not only reinforce good spending habits, you may actually see nights on the road go down, mileage, etc... and more problem solving when it comes to the big picture. If he feels someone in the home office is sluffing off, he will be more incentivized to address the issue with you or go right to the source and attempt to problem solve.
1. Is any of that going to customer dinners? I am generous with customers that (a) spend a lot, (b) are having problems with us IE late or warranty, (c) first order, (d) Christmas. I find this comes back around big time.
2. Is the employee frustrated? I find myself and other salesmen are more apt blow out the expense account when the main office is not keeping up. I would consider a discussion with your salesman about his satisfaction level. Is there any dead wood in the office? Are things late? Is the quality compromised? Is the customer happy?
3. If things are good and he just considers it justifiable to buy steaks based on his stellar performance, you have two options: (a) suck it up, it's better than paying two more employees and their healthcare and travel costs; (b) reinvent his comp plan. Give him a variable overall budget related to revenue, profit, days on the road, etc... rather than a flat per diem. You can build in many factors and benefits here other than per diem. You are essentially making him the owner/CEO of his own small profit center. If he wants to blow out $250/night on steaks, it comes out of his P&L and affects his comp.
This will not only reinforce good spending habits, you may actually see nights on the road go down, mileage, etc... and more problem solving when it comes to the big picture. If he feels someone in the home office is sluffing off, he will be more incentivized to address the issue with you or go right to the source and attempt to problem solve.
Posted on 6/28/22 at 7:36 am to 14&Counting
quote:
This guy is going to quit and go to a competitor who won't care if he spends an extra $125 to bring in the business
You think I am bitching about this if he is with a client? No. He's eating alone or with some random he picked up.
Posted on 6/28/22 at 7:38 am to I Love Bama
Google IRS Publication 1542. There are set max rates (and the IRS lists the actual cities and times of the year where/when they appy) and anything above that has to reported as income. Tell him your CPA is making you go legit.
Top Producers need to be rewarded but if you want a way out and want to stay legit then you have it.
Top Producers need to be rewarded but if you want a way out and want to stay legit then you have it.
Posted on 6/28/22 at 7:38 am to I Love Bama
You can’t just ignore it altogether, though. Pull him in for an informal chat and let him know that you recognize his contributions and are fine with stretching things a bit in recognition of those contributions but doubling the per diem in one meal is a bit much.
Posted on 6/28/22 at 7:38 am to I Love Bama
Coffee is for closers.
Posted on 6/28/22 at 7:38 am to I Love Bama
Coffee is for closers. Pour the man a second cup
Posted on 6/28/22 at 7:40 am to I Love Bama
Did he use $125 the day before or day after? Maybe he thought since he skipped a day he could double down.
Posted on 6/28/22 at 7:41 am to captainahab
quote:
Google IRS Publication 1542. There are set max rates (and the IRS lists the actual cities and times of the year where/when they appy) and anything above that has to reported as income. Tell him your CPA is making you go legit.
Top Producers need to be rewarded but if you want a way out and want to stay legit then you have it.
Yeah this seems like a good idea. Thanks.
Posted on 6/28/22 at 7:42 am to I Love Bama
Is it possible he had another coworker with him?
You need a bad cop so you can be a good cop. Have someone from accounting tell him to stop with you on CC so he knows they are watching. You could not reply at all or reply just to him telling him you appreciate what he does and keep making you money, just try to keep it under the per diem.
Employees are hard to come by, especially rain makers.
You need a bad cop so you can be a good cop. Have someone from accounting tell him to stop with you on CC so he knows they are watching. You could not reply at all or reply just to him telling him you appreciate what he does and keep making you money, just try to keep it under the per diem.
Employees are hard to come by, especially rain makers.
Posted on 6/28/22 at 7:43 am to I Love Bama
quote:
You think I am bitching about this if he is with a client? No. He's eating alone or with some random he picked up.
Yeah, maybe tonight he was. Did you ask him? Maybe he was at a bar and met a potential client or 2 and they ended up having a great dinner and he’s gonna produce a lot from that.
Or maybe he’ll do that next week.
You are trying to apply little fish rules to a big fish.
Find out the facts first
Posted on 6/28/22 at 7:43 am to I Love Bama
quote:
Last night he dropped $250 at high end steak house for dinner alone
He drinks huh
Posted on 6/28/22 at 7:44 am to Salmon
quote:
he is going to keep pushing it to see what exactly the limit is
I kinda do this, but I also offer up a preempted strike when I do it so they aren't surprised. I've yet to hear "don't do that again"
Posted on 6/28/22 at 7:45 am to fr33manator
All you people asking if he took out a client, it’s coded differently and requires names when filing the expense report.
Posted on 6/28/22 at 7:48 am to I Love Bama
quote:
We have per diem rules in place for everyone ($125 a day) and he really just ignores them completely.
Last night he dropped $250 at high end steak house for dinner alone.
Does he spend like this every day, or is this more of a "well I didn't spend anything yesterday, so today I can spend $250 instead of $125" sort of thing? Just trying to get his perspective.
quote:
Is this an ego thing on my end and I should leave this alone or should I talk to him?
Rules are rules. You should talk to him. $125 is a pretty generous per diem.
ETA: if this $250 purchase wasn't with clients, then I'm not sure how he can justify that. Makes no sense.
This post was edited on 6/28/22 at 7:50 am
Posted on 6/28/22 at 7:48 am to I Love Bama
Stealing little leads to stealing big! Shut them down now or be prepared for much bigger losses later. Only if it is truly a 1 time occurrence and very special circumstances. If its a pattern, they are trouble.
Posted on 6/28/22 at 7:51 am to fr33manator
quote:
Was he taking a client out for dinner? Is he gonna close a big deal worth way more than a couple hundred bucks? Rules are there to limit the losses of losers. Winners bend them to win the game.
This. Max per diems are stupid. We have no limit on per diem and people end up spending way less. Every other company that I’ve worked for that had a max, people will literally do anything to spend every bit of it.
This post was edited on 6/28/22 at 7:54 am
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