When employees book travel that goes beyond approved budgets, it puts pressure on you to manage and optimize travel expenses effectively. If they’re consistently going over the set expense limits, it’s tough to control spending, and before you know it, your travel budget starts to feel the strain. This lack of policy compliance can drive up costs quickly, impacting the company’s finances more than you’d like.
As an HR or Travel Managers do you find yourself in this situation? Let’s dive into the common reasons why employees may not follow travel policies and explore some practical solutions to help keep everyone on track.
What is the Travel Policy?
A travel policy is a set of clear, easy-to-follow guidelines a company provides to help employees manage their business travel effectively. It covers every step from booking and approvals to expense reimbursement ensuring both the company and the employee have a smooth travel experience. Typically managed by HR or a travel manager, this policy helps you understand how to handle bookings, get approvals, arrange transportation, and submit expenses for reimbursement.
Why a Travel Policy Matters
A well-defined travel policy ensures employees can focus on their work instead of worrying about travel arrangements and expenses. By meeting both business needs and employee comfort, a company’s travel policy makes business trips smoother and more efficient for everyone involved.
Purpose of the Travel Policy:-
- Ensure employees follow company travel guidelines for both domestic and international trips.
- Define which travel costs the company covers and which are employee responsibilities.
- List preferred airlines and accommodation providers for easy bookings.
- Include company travel insurance details for trip coverage.
- Set cost limits on bookings and lodging to manage expenses.
- Specify reimbursable and non-reimbursable expenses.
- Outline procedures for booking and arranging travel.
Scope of the Travel Policy:-
- Applies to all authorized employees, including full-time, part-time, contractors, and interns.
- Covers business travel arrangements for trips [number of hours] away from the office.
- Applicable to both domestic and international travel.
Common Challenges Employees Face with Travel Policies
When it comes to corporate travel, employees often face several challenges that make following the travel policy difficult. Here’s a look at some common issues:
Lack of Awareness of the Policy
Employees may not be fully informed about the travel policy, leading to confusion and unintentional non-compliance.
For example, a new employee booking a hotel room for a business trip, unaware that the company has a cap on nightly rates. They book a more expensive room, only to find out later that they won’t be fully reimbursed. Situations like this happen often when employees aren’t fully informed about the details of the travel policy. A quick onboarding guide or reminder email about travel policies can help avoid these misunderstandings.
Complex or Confusing Policy Language
Policies that are hard to understand can frustrate employees and make it difficult to follow the guidelines correctly.
For example, if the policy states “non-qualifying lodging expenses are not reimbursable,” without clear examples, employees may not know if amenities like Wi-Fi or breakfast are covered. Clear, straightforward language, with examples, helps employees understand and follow the guidelines without guesswork.
Manual Booking and Approval Process
Relying on manual processes can slow things down and lead to errors, especially with last-minute travel needs.
For example, When an employee needs last-minute approval for a conference, relying on manual sign-offs can slow things down. If the manager is unavailable, it might delay approval, leading to higher costs for last-minute bookings. Moving to an automated approval process could speed up these requests and make it easier for employees to secure travel arrangements in time.
Rigid and Restrictive Policies
Strict policies that don’t consider employee preferences can lead to dissatisfaction and lower compliance rates.
For example, if employees are restricted to budget hotels but prefer staying at locations with basic amenities like a gym or workspace, it can be uncomfortable, especially for longer trips. Allowing some flexibility within a set budget range can make employees feel more valued and improve compliance rates.
Complicated or Outdated Software
Difficult-to-use travel software can add frustration, making it harder for employees to navigate and submit expenses.
For example, having to re-enter personal information or booking details every time can make submitting expenses time-consuming and frustrating. Switching to a more user-friendly system can simplify the process, saving employees time and improving the travel experience.
Lack of Customizable Software Options
Software that can’t adapt to specific company policies may limit compliance and create unnecessary challenges.
For example, employees working in high-cost areas might need flexible lodging options, but a one-size-fits-all system doesn’t account for these nuances. Customizable software that adapts to different policy needs can make it easier for employees to follow guidelines, no matter where they’re traveling.
By addressing these common issues, you’ll make it easier for employees to follow the travel policy, creating a smoother experience for everyone involved.
Key Elements of a Company Travel Policy for Employees:
Here’s what a well-structured travel policy for employees typically includes:
- Approval Process for Travel
Clear steps for getting approval on travel arrangements, whether for flights, accommodations, or any other travel requirements. - Transportation and Lodging Costs
Details on which transportation and accommodation types are covered by the company, ensuring comfort within budget. - Meal, Entertainment, and Communication Expenses
Guidelines for reimbursable costs related to meals, entertainment (if applicable), and work-related phone calls. - Safety and Security
Measures to ensure the safety of the employee and any work materials during the trip, from secure accommodations to emergency protocols. - Reimbursement Process
Simple steps to follow for claiming reimbursements after travel, making sure employees are compensated promptly for approved expenses. - Covered Expenses
An outline of what expenses the company will cover, such as airfare, lodging, and specific travel-related costs, so employees know what to expect.
Travel Policy Compliance Made Easy with CoTrav
- Clear, Customized Policies: Set up customized travel policies that match your company’s guidelines, so employees can easily stay within compliance.
- Online Booking and Approvals: CoTrav streamlines booking and approval processes, reducing delays and ensuring all travel follows policy.
- User-Friendly Platform: With an intuitive interface, CoTrav simplifies navigation, reducing errors and improving the overall user experience.
- Policy Mapping: Every booking is compliant with Travel Policy of the company by mapping your policy rules with the CoTrav online booking management system.
- No Reimbursement Process Required: CoTrav directly handles expense tracking and payments, so there’s no need for reimbursement processes, making travel management stress-free.
With CoTrav, travel compliance becomes seamless and efficient, saving time, reducing stress, and keeping everyone on track.
Conclusion
Managing travel policy compliance doesn’t have to be a stress. By addressing common challenges and leveraging tools like CoTrav, you can streamline the entire process, making it easier for employees to understand, follow, and comply with travel guidelines.
CoTrav online booking, user-friendly platform, and policy-mapping ensure everyone stays on track without unnecessary delays or complexities. With a well-structured travel policy and CoTrav support, your company can effectively control costs, boost employee satisfaction, and maintain seamless compliance making business travel simpler, smarter, and more efficient for everyone involved.
