Increasingly, employers are announcing work-from-home plans through the middle of 2021 at least. To combat employees’ aches and pains due to lousy accommodations at home, organizations need to get serious about offering help. Ignoring the issue could result in future litigation. As one solution, many are considering giving stipends to employees to improve their home office setups.

A friend of mine told me that her company plans to reimburse employees for things like an ergonomic chair, up to a certain dollar amount. She continued by stating the reimbursements would occur via check payments. I grimaced at the inefficiencies of such a plan. Then I got to thinking about the various procure-to-pay (P2P) processes that could be utilized for this type of initiative. The key goals should be: efficiency for accounts payable, preventing employee misuse, and addressing employees’ biggest home office shortcomings within reason. While every organization’s situation is different, the following list of considerations applies to all.

I first introduced this topic in March in relation to business continuity plans, but now it is a matter of accommodating, or preparing for, a new norm.

Planning Stage

Before getting into the actual P2P aspects, there are related details to address.

Should there be special budget/accounting codes for the purchases for easier tracking?
Who is eligible to receive help for their home office setup?
Decide what your organization will pay for and what is prohibited, along with the per-employee dollar limit to accommodate allowed purchases.
Will use of an “approved vendor” be required? Further, will your organization identify specific approved items to narrow the scope? The “approved” concept can help your organization maintain control and minimize employee shopping time.
Will there will a deadline (“use it or lose it”)?
Under what circumstances will your organization consider any exceptions to the established parameters?
Consult with your legal experts. For example, by helping employees with their home office setups, can you require them to sign an agreement that they will not sue for health conditions (e.g., carpal tunnel syndrome)?

P2P Processes

First and foremost, avoid checks and concentrate on electronic payment options.

Ideally, purchases should go directly to employees’ homes to avoid the hassle and virus risk of employees having to pick up from a central location like the organization’s shipping dock. However, giving employees’ addresses to the procurement team or existing cardholders (in a centralized purchasing scenario) is a privacy issue.

Going to the other extreme—an employee expense reimbursement process—usually creates more work for accounts payable (AP) and puts them in the position of having to police purchases. I would only consider this if the number of purchases will be quite limited.

An organization could issue prepaid cards to employees and not be concerned with how they spend it, but this is not the best way to avoid future litigation. In addition, there is the issue of the funds being part of an employee’s income.

Better Solution

Issuing Declining Balance Cards, with notable merchant category code (MCC) blocking to reduce the risk of misuse, would allow the organization to monitor employees’ purchases and, as with other Commercial Cards, streamline payments. Also, default budget codes could automatically be applied.

Of course, there could be other acceptable solutions; perhaps something involving Virtual Cards. It will all depend on an organization’s identified requirements, based on its unique situation.

Beyond the P2P Process

Many organizations offer resources pertaining to office ergonomics. If not, here is one quick article from Boston University: 10 Ergonomics Dos and Don’ts for Those Now Working from Home.

Assisting employees with a combination of financial support (e.g., home office purchases) and education can boost morale and increase productivity.

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About the Author

Blog post author Lynn Larson, CPCP, launched Recharged Education in 2014. With 20 years of Commercial Card experience, her mission is to make industry education readily accessible to all. Learn more…