Reimbursement Delays Hit UK Employees

A recent Airwallex report reveals how outdated reimbursement processes are
creating financial stress, lowering morale, and driving talent away—while
modern solutions could end the cycle.

For many UK
employees, managing work-related expenses isn’t just a minor administrative
task—it’s a hidden financial strain that steadily chips away at their personal
finances and emotional well-being. A recent
report by Airwallex exposes just how widespread and damaging this issue has
become in today’s workforce.

Whether it’s
booking last-minute travel, covering hotel stays, or footing the bill for
client lunches, employees across industries are routinely asked to pay business
expenses out of their own pockets. While the promise of reimbursement is meant
to soften the blow, delays and inefficiencies in outdated systems often leave
workers waiting weeks—sometimes months—for repayment.

In a world where
cost-of-living pressures are already high, this ‘pay now, reimburse later’
model is doing more harm than many employers realize. Airwallex research shows
that it’s not just lower-income employees feeling the pinch; even high earners
are being caught in this financial limbo. The result? Rising frustration, strained
finances, decreased morale, and in some cases, employees walking away from
their jobs entirely.

The
Growing Financial Burden of Upfront Business Costs

According to
Airwallex, nearly half
(45%) of UK employees regularly use personal funds for business
expenses, with a quarter
(24%) doing so at least once a month. This issue is particularly
pronounced in London, where a staggering 68% of workers report covering company costs upfront.

On average,
employees are spending £4,255
annually—about £355 each month—on work-related expenses. For higher
earners, particularly those with salaries exceeding £100,000, nearly a third report annual expenses
topping £20,000. These figures highlight that regardless of income,
being out of pocket for work is becoming a serious financial commitment.

But it’s not just
the amount being spent—it’s the waiting game that follows. Only 30% of employees receive
reimbursements within a week, even though nearly 40% expect to be repaid in
that timeframe. The
majority (59%) wait up to two weeks, while over a quarter endure delays of
three to four weeks or more.

The
Emotional and Professional Toll of Reimbursement Delays

Airwallex’s
research highlights ten key pain points tied to outdated reimbursement
processes:

1. Widespread
   Financial Strain: 43%
   of employees have faced financial hardship while waiting for
   repayments—this figure jumps to 66% for those with monthly expenses.
2. No Escape for High Earners: Half of employees
   earning over £100,000 report financial challenges caused by delayed
   reimbursements.
3. Reliance on
   Credit: 41% turn to
   credit cards to manage business expenses, risking interest charges
   if repayments lag behind.
4. Borrowing
   from Family and Friends: Among employees earning under £30,000, nearly
   half (45%)
   have resorted to personal loans from their network to stay afloat.
5. Missed
   Opportunities: 12%
   have skipped professional events to avoid upfront costs, while 13% of younger
   employees (18-34) have quit jobs over persistent reimbursement
   frustrations.
6. Emotional
   Stress: Waiting for repayments triggers frustration (41%) and anxiety
   (42%), particularly among lower-income workers.
7. Regional
   Disparities: Londoners
   face the highest upfront cost expectations, while employees in
   regions like the North East report the greatest financial strain.
8. Erosion of
   Trust: Slow reimbursements damage employer-employee relationships,
   undermining morale and engagement.
9. Productivity
   Impact: Time spent chasing payments
   Payments
   
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   One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl
   Read this Term or managing personal cash flow for
   business purposes distracts from core job responsibilities.
10. Demand for
    Change: Over half of employees want better reimbursement processes, with
    many finding current software solutions clunky and outdated.