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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 10:40 am to
Posted by chinhoyang
Member since Jun 2011
25568 posts
Posted on 6/28/22 at 10:40 am to
quote:


interesting, now there's an entirely different angle to the old "if they don't meet the standards, lower the standards!" adage


not exactly, it is more an avoidance of a situation where the company's enforcement of a policy will result in business suicide. I always make sure that my policy manuals leave the employer with discretion to not follow the policies if there is a good reason to do so.

I am occasionally called on to lecture this miscreants, which is kind of fun.

There was a guy in his 50's who was a fantastic salesman, but he hugged the women at work and they didn't like it. So, the company President and I met with the guy. His first response is "I'm a huggie kind of guy" to which I replied "you didn't hug me or (name of the company President), so clearly you aren't." Then, he pointed out that there was a young guy named Sven who hugged the girls and women, and that no objections were made. The guy was 6 4 and clearly a "hunk." I said "he's a good looking guy so I'm sure they don't mind ... this is about you and you need to quit hugging people at work." It solved the problem.
Posted by greenbean
USAF Retired - 31 years
Member since Feb 2019
6082 posts
Posted on 6/28/22 at 10:42 am to
quote:

his mildly reminds me of one instance i had with the company CC that got me in trouble.

i had to go to Mesquite, TX to troubleshoot some large network issues. I left my house at 3 AM to get there at 5 AM and worked from 5 AM to 7 PM without a break for lunch.

fixed it, and had to fly out the next day to the valley. i was beat and went to the hotel. this was before uber eats or door dash, so i just wanted to go to something in walking distance. my option were chilis, BWW, and a skank haven called Bikini's. it was march madness so BWW was full forever and Chilis had an hour wait time. bikinis had 2 cars in front.

we're a very small company and my boss' wife is the accounts lady so she looks at everything and everyone that works for us is a christian. we can do some drinking but anything like a hooters is a big no go. i call my boss and explain my situation and tell him i'm going to the bikini's due to the wait. he knew i had been busting it, so he said it was fine, just behave myself and watch basketball. i did as such. told my wife as well, just to cover my bases.

the next day after i land, my boss calls and tells me his wife was reviewing the CC and was ready to tear into my arse for going to some place called bikinis and after looking it up, knew i went against company policy. he fortunately covered for me and laughed at how predictable that was going to play out.

perks and curses of working for a small company.




You should have nailed his old lady to set her straight. Ain't no woman's business what a man is doing.
Posted by Jcorye1
Tom Brady = GoAT
Member since Dec 2007
76373 posts
Posted on 6/28/22 at 10:43 am to
You gotta set boundaries or he won't respect you. I'm not saying come down like Zeus, but take him aside and let him know there are rules and while sometimes they slide, spending 100% over your daily per diem is not acceptable unless it's a big client bringing in big money.
Posted by 777Tiger
Member since Mar 2011
88262 posts
Posted on 6/28/22 at 10:43 am to
quote:

I always make sure that my policy manuals leave the employer with discretion to not follow the policies if there is a good reason to do so.


that's a good stop gap, the hr pendulum has definitely swung too far

quote:

I am occasionally called on to lecture this miscreants, which is kind of fun.

There was a guy in his 50's who was a fantastic salesman, but he hugged the women at work and they didn't like it. So, the company President and I met with the guy. His first response is "I'm a huggie kind of guy" to which I replied "you didn't hug me or (name of the company President), so clearly you aren't." Then, he pointed out that there was a young guy named Sven who hugged the girls and women, and that no objections were made. The guy was 6 4 and clearly a "hunk." I said "he's a good looking guy so I'm sure they don't mind ... this is about you and you need to quit hugging people at work." It solved the problem.

Posted by RogerTheShrubber
Juneau, AK
Member since Jan 2009
294984 posts
Posted on 6/28/22 at 10:44 am to
Policy is just a guideline. You have to have leeway to make changes if needed.
Posted by LSU Grad Alabama Fan
369 Cardboard Box Lane
Member since Nov 2019
13890 posts
Posted on 6/28/22 at 10:47 am to
I see you left off how much money he earns the company vs how much the 2nd best producer and average producer earns the company.

I think you're scared to show us the numbers because that $125 extra a day is going to make you look like a bitch for even complaining about it.
Posted by Jcorye1
Tom Brady = GoAT
Member since Dec 2007
76373 posts
Posted on 6/28/22 at 10:47 am to
quote:

It is very clear in this thread who does and does not understand what per diem is


Most people recognize it's probably a company credit card line of credit and are just going with it.
Posted by VABuckeye
NOVA
Member since Dec 2007
38283 posts
Posted on 6/28/22 at 10:48 am to
quote:

spending 100% over your daily per diem is not acceptable unless it's a big client bringing in big money


As noted earlier per diem and business expenses are two different items. Per diem should never be spent on a business dinner. That is for the business expense account.

The OP's problem is that he's mixing per diem and business spending with the way he is handling per diem. If it's per diem you pay it to the employee and don't expect receipts. The OP is mudding the waters with the way he is compensating his employee. His accountant is going to go nuts over the method in which he pays per diem.
Posted by RockyMtnTigerWDE
War Damn Eagle Dad!
Member since Oct 2010
108066 posts
Posted on 6/28/22 at 10:48 am to
quote:

Company card was always expense account/report and per diem was always direct deposit flat rate into my personal account.


This
Posted by LouisianaLady
Member since Mar 2009
82666 posts
Posted on 6/28/22 at 10:49 am to
quote:

How does that work?

I've had both company card and per diems.

Company card was always expense account/report and per diem was always direct deposit flat rate into my personal account.




I think he just accidentally misused the term per diem, tbh. Sounds like it's a company card that they've verbal set limits for.
Posted by Mingo Was His NameO
Brooklyn
Member since Mar 2016
36444 posts
Posted on 6/28/22 at 10:57 am to
quote:

The OP's problem is that he's mixing per diem and business spending with the way he is handling per diem. If it's per diem you pay it to the employee and don't expect receipts. The OP is mudding the waters with the way he is compensating his employee. His accountant is going to go nuts over the method in which he pays per diem.


This is the correct answer. He's got all sorts of business expense, payroll, taxable income problems it sounds like based on what he's said so far
Posted by LouisianaLady
Member since Mar 2009
82666 posts
Posted on 6/28/22 at 10:57 am to
quote:

spending 100% over your daily per diem is not acceptable unless it's a big client bringing in big money.



I came into this thread thinking it would be only slightly egregious and that I'd say "He's the top employee, let it go".. Because lord knows I love a nice meal.

But $250 for a person with no other guests is pretty wild. Unless he did some sort of Michelin tasting menu, I'm assuming the only way to get to $250 is to order a $100+ bottle of wine for yourself. Which is pretty bold for a solo dinner on company dime.
Posted by DownSouthCrawfish
Lift every voice and sing
Member since Oct 2011
40517 posts
Posted on 6/28/22 at 10:59 am to
Alpha af
Posted by GRTiger
On a roof eating alligator pie
Member since Dec 2008
68926 posts
Posted on 6/28/22 at 11:00 am to
Are you implying I don't?
Posted by Mingo Was His NameO
Brooklyn
Member since Mar 2016
36444 posts
Posted on 6/28/22 at 11:02 am to
quote:

Are you implying I don't?


Can you tell me the difference between per diem and M&E?
Posted by chinhoyang
Member since Jun 2011
25568 posts
Posted on 6/28/22 at 11:02 am to
I have a client who, at one time, had fantastic Walmart connections. He entered into an agreement with a South Texas feed store to sell deer corn to Walmart. The store owner's son confronted my client, bitching about my client spending $1100 on travel and meals "without making an sales." I think the kid thought that my client was going to sell small lots to various country feed stores.

Client says "oh, I made a sale," and hands the bratty kid a purchase agreement for many tons of deer corn to Walmart. Kid learned a lesson that day. They ended up having to put in a railroad spur at the feed store to handle rail cars full of corn, and then Walmart's main deer corn supplier at the time bought them out.



Posted by GRTiger
On a roof eating alligator pie
Member since Dec 2008
68926 posts
Posted on 6/28/22 at 11:07 am to
Sure. I don't believe the semantics of what exactly the expense should be called in this case is relevant to the topic, but I am fairly familiar with expense reporting.

Also, for what it's worth, actuals even for per diem used to be the norm in the business I THINK you're in, so the semantics side is even less relevant if OPs policies are just old. It was a bad policy and tedious for the employees, but it's how the old partners did it.
Posted by Mingo Was His NameO
Brooklyn
Member since Mar 2016
36444 posts
Posted on 6/28/22 at 11:08 am to
quote:

. I don't believe the semantics of what exactly the expense should be called in this case is relevant


It's extremely relevant
Posted by 777Tiger
Member since Mar 2011
88262 posts
Posted on 6/28/22 at 11:10 am to
quote:

, so the semantics side is even less relevant


no need trying to use rationale or common sense with this idiot, he's got neither
Posted by Stealth Matrix
29°59'55.98"N 90°05'21.85"W
Member since Aug 2019
10831 posts
Posted on 6/28/22 at 11:11 am to
quote:

Employee spends too much on company card. But is top producer...

SuperStars never come cheap.
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