1 Understand the reasons

The first step to handle exceptions to an expense report policy fairly is to understand the reasons behind them. You should ask the employee to provide a clear and detailed explanation of why they need an exception, and what alternatives they have considered or tried. You should also verify the validity and accuracy of the information they provide, such as receipts, invoices, or supporting documents. This will help you to assess the legitimacy and urgency of the request, and to avoid granting exceptions based on personal preferences, biases, or favoritism.

2 Apply the criteria

The second step to handle exceptions to an expense report policy fairly is to apply the criteria that you have established for granting them. You should have a clear and consistent framework that defines the conditions, limits, and procedures for making exceptions, and communicate it to your employees. For example, you may specify the types of expenses that are eligible for exceptions, the maximum amount or percentage that can be exceeded, the approval process and authority level required, and the frequency and duration of the exceptions. You should also document and track the exceptions that you grant, and review them periodically to evaluate their impact and effectiveness.

3 Communicate the decision

The third step to handle exceptions to an expense report policy fairly is to communicate the decision to the employee and other relevant parties. You should explain the rationale and evidence behind your decision, and how it aligns with the policy objectives and principles. You should also acknowledge the employee's situation and perspective, and express your appreciation for their work and cooperation. If you deny the exception, you should offer feedback and guidance on how they can comply with the policy in the future, and provide alternative solutions or resources if possible. If you grant the exception, you should remind the employee of their responsibilities and expectations, and follow up on the results and outcomes.

4 Manage the implications

The fourth step to handle exceptions to an expense report policy fairly is to manage the implications of your decision for the rest of your team and organization. You should consider how your decision may affect the morale, motivation, and performance of your employees, and how it may influence their perception of the policy and its fairness. You should also anticipate and address any potential issues or conflicts that may arise from your decision, such as questions, complaints, or disputes from other employees or stakeholders. You should strive to maintain a balance between flexibility and consistency, and between trust and control, when dealing with exceptions.

5 Evaluate and improve

The fifth step to handle exceptions to an expense report policy fairly is to evaluate and improve your policy and practice. You should collect and analyze data and feedback on the frequency, causes, and effects of the exceptions that you have handled, and identify any patterns, trends, or gaps that may indicate problems or opportunities. You should also solicit and incorporate input and suggestions from your employees and other stakeholders on how to improve the policy and its implementation. You should then revise and update your policy and criteria as needed, and communicate and train your employees on the changes.

6 Handle exceptions fairly

Handling exceptions to an expense report policy fairly is a challenging but important task for any manager or leader. It requires a combination of skills, such as critical thinking, communication, and problem-solving, as well as values, such as integrity, fairness, and empathy. By following these five steps, you can handle exceptions to an expense report policy fairly, and enhance your relationship with your employees, your compliance with your organization, and your performance as a manager or leader.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?