August 23, 2021

A Successful Corporate Travel Policy

Employees who travel for work do not dislike the company’s travel policy. Employees want to know what is expected of them and how to comply with company policies, as long as the policies are fair and allow them to accomplish what they need to do on the road. As a result, a well-considered corporate travel policy benefits both the firm and the business traveler.

If you’ve been tasked with creating a corporate travel policy, your goal is to create a policy that standardizes business costs, reduces waste and excess on the road, and establishes some controls over that portion of the business expense picture. As a result, there are a few specific emphasis areas you should include in your declared company policy, such as…

Reservations.

A travel agent that is searching for the greatest price for the company may be used by the firm. The greatest prices may be found and taken advantage of, but only if the requirements of the business traveler and the trip’s business objectives are met. Requiring workers to use the corporate travel agency is not unjust, because it explains how to manage the issue for the individual.

Credit is used.

Setting up business credit cards that you may compel your traveling workers to use takes some time and money. However, by tying expenditures to the corporate account, you can keep track of the majority of the employee’s business spending. Many travel costs, such as airline and hotel charges, maybe directly invoiced back to the employer, removing the burden from the business traveler.

Travel incentives.

Corporate accounts with the main airlines may be created so that the company can earn frequent flyer miles if your corporate travel is handled by an internal or external travel agency. As a result, the company may redeem the miles and use the advantages as a substantial reduction on its travel budget.

On a daily basis.

Your company’s travel policy should make it obvious to traveling employees what their hotel, rental vehicle, and food limitations are while on the road. You want to intervene before the employee develops a habit of overspending on a daily basis. This section of the policy should be reviewed at least once a year to ensure that it is up to date with current expenses.

Reporting.

The expenditure reporting system is opaque and difficult to fill out, which is one of the most common concerns workers have about company travel rules. You’ll provide the employee a standardized form that each business traveler must complete in order to be paid for costs incurred while on the road. However, examine these forms and perhaps create your own to ensure that the structure is clear and that you have sections for all kinds of expenditures that an employee may incur.

Along with these broad categories, your company’s travel rules should provide some flexibility for workers who find themselves in unusual circumstances. Depending on where the employee needs to go, the cost of lodging and meals may be quite different. So you don’t want to set the hotel limit at $125 per night since it’s acceptable to stay in a nice hotel for that price in Lincoln, Nebraska, but you don’t want to apply the same restriction to an employee who has to travel to New York City for business.

You will have a tool that will serve both company and employee interests and enable business travel to be what it was always intended to be – a productive, business-focused activity that achieves the enterprise’s goals – by creating a policy that protects the corporate budget in general but is also workable for employees who are on company business.

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