How to write a company travel policy?
It is surprisingly common to come across organisations that despite having significant expense in terms of travel, they do not have a travel policy to adhere to and whilst it is possible for a company to get by without ever formally documenting rules on employee travel and expenses it is inadvisable.
Each company has to find a program that matches its size, travel pattern, and culture. Yet for all these unique considerations, the importance of getting it right is universal, as are the basic principles that go into designing the right policy.
So why do you need a travel policy?
Cost Control - Smart policies don’t just protect against overspending, they actively encourage saving.
Employee Satisfaction - Business travellers want the right amount of guidance from their company policy. Not having defined rules can leave employees confused, but having too many rules can be counterproductive. By creating more work for an employee during booking, and giving them too few comfortable and convenient options on the road, overly-strict policies encourage travellers to go rogue.
Reporting - T&E is one of the largest expense categories at a typical organization, often ranking behind only salary and rent. Because a company’s travel policy determines how employees book and submit expenses, it has a huge effect on whether spending remains visible.
By identifying specific priorities, you’ll know where to focus your attention. Here are some possible objectives:
Reduce average trip cost
Replace some travel with virtual meetings
Promote use of approved suppliers
Secure negotiated hotel rates
Increase advance booking
Improve employee satisfaction with flight and hotel options
Speed up expense reimbursement process
Once you have established the objectives, we work with clients and potential clients in order to write a travel policy that is comprehensive, covering every stage of trip from booking through to reimbursement, and at the same time comprehensible.
Below are a list of examples that could be included in a travel policy:
Where should employees book their travel?
How should they pay?
How are trips approved or rejected?
What class of flight?
Flight selection criteria
Hotel star class
Allowable expenses whilst in a hotel
Rail v plane
Economy v Business Class
Are you struggling to get to grips with your travel policy? Why not get in touch today and see how we can help.
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