In today's fast-paced world, travel has become an essential part of doing business for organizations from startups to enterprises. Without proper guidelines in place, however, travel expenses can quickly become tough to manage. That's where a corporate travel policy comes in. In this post, we’ll give you an overview of what you need to know.
This article explores travel policy topics, including:
A travel policy is a set of guidelines that covers the rules and regulations regarding employee travel. It may cover topics such as travel and accommodations booking, reimbursement procedures, and travel expenses. A travel policy ensures that travel expenses get managed effectively and that all expenses are within the company's budget.
Having a travel policy offers many benefits for employees and for your company. It helps ensure compliance, improve safety, and enhance the overall travel experience for your employees. For example, a clear travel policy can make employees aware of the company’s guidelines and what the recommendations are for avoiding risks related to security issues and other incidents. A well-crafted policy can also help improve employee morale and satisfaction, as they'll know what to expect when they're on the road.
Writing a travel policy may seem like a daunting task, but when you have guidelines for where to focus your attention, it becomes much easier. Consider these tips the starting line to put travel policies together.
Determine the purpose of the travel policy. What are your primary goals? Example goals might include needing to stay within company budget, complying with safety and security regulations, or streamlining travel processes. Consider the types of travel your team members will participate in, including domestic or international travel, and the frequency of travel. This information will help you develop a clear and concise policy that addresses the specific needs of your company.
The next step is to make note of the dos and don’ts for employees booking travel. This includes identifying and approving vendors that employees should use. Specify the reimbursement rates for each type of expense. Make sure that the guidelines are easy to understand and that they align with the goals you set for yourself in the first step.
After you define the guidelines for booking travel, it’s important to establish the process for obtaining approval for travel and reporting expenses. Define who has the authority to approve travel requests and what criteria to consider before approving them. There should also be a process for reporting expenses and submitting reimbursement requests.
In addition, outline what documentation employees need, like receipts or invoices, to support each expense. Your process should specify how long employees have to submit their expenses for reimbursement and what the timeline is for receiving their funds.
Flexibility is key to creating an effective corporate travel policy. By providing a range of options and accommodating individual preferences, you can encourage adherence and increase employee satisfaction, all while maintaining control over your travel budget.
Here are a few ideas about where to add flexibility to your policy:
Encourage local experiences: Support employees in exploring local businesses, like restaurants and independent retail locations that cater to their preferences.
Include alternative lodging options: Employees who prefer a more home-like environment or require longer stays may appreciate choices like serviced apartments or co-living spaces.
Provide a travel allowance: This approach empowers employees to make their own decisions about some of their travel-related expenses while staying within a predefined budget.
Employees should be able to quickly understand your travel guidelines. It may be helpful to create a travel policy template with headings, bullet points, and other formatting elements to make it easier to comprehend and navigate. Additionally, it’s important to ensure that the policy is accessible to all employees. You can do this by making the travel guidelines available in print and digital versions.
There’s no one-size-fits-all method for creating a corporate travel policy, but there are best practices. Consider the 3 concepts below as key pillars as you build out your document.
It's essential to clearly outline which modes of transportation and accommodations are acceptable, in order to avoid any confusion. For instance, you may want to make sure employees stay in hotels that you’ve preselected or have them fly with preferred airlines. To make the booking process easier, consider using company-approved travel agents or online booking tools that meet your standards.
Another critical topic to cover is travel expenses and reimbursement. According to Runzheimer’s Business Travel Expense Trends: Conference Travel Costs report from 2020, the average business trip cost is divided among lodging (34%), airfare (27%), meals (20%), and car rentals (19%). Many companies set per diems for these expenses to simplify the tracking and reporting process. Consider this as you develop your plans and define the expenses that are reimbursable.
Additionally, you may decide to invest in resources that assist employees with expense reporting, like a mobile app or online platform. For example, with Uber for Business, employee ride and meal receipts can flow directly into your expense provider dashboard. This helps employees save time by not needing to track down receipts.
Another topic that you’ll want to cover is travel safety and security. In this section of your policy, establish guidelines including recommendations on what to do if a problem arises and which locations are currently unsafe.
Consider providing employees with resources, such as specific training and emergency contact information. By prioritizing travel safety and security in your policy, you can help employees stay out of harm’s way while traveling and help ensure that the company isn’t taking on unnecessary risks.
Landing on the right standards for business travel comes with a specific set of challenges. Let’s take a closer look at the 7 common obstacles businesses face when developing their corporate travel policy and how to overcome them.
Balancing company needs with employee preferences. It can be a challenge to develop a travel policy that meets the needs of the company while also considering the preferences and needs of employees. To make a policy effective, strike a balance between cost efficiency and employee satisfaction.
Keeping up with travel regulations. Travel regulations can change, which makes it difficult to always have the right information. Many countries, for example, frequently assess and revise entry policies. You must stay up to date with changing requirements and adjust your documentation accordingly.
Ensuring consistency. Making sure travel policies are followed consistently across all departments and employees is not easy. Create a system that can monitor and enforce policy compliance.
Addressing unique travel needs. Employees may have travel needs—such as disabilities or medical conditions—that require special attention. Consider these unique needs so that you can provide the necessary accommodations and resources.
Communicating the policy effectively. It’s essential to share the details about this initiative with all employees and make sure they know where to find relevant information. Establish a process for introducing the guidelines, and be sure to have a plan to address questions and concerns.
Auditing expenses. Regular monitoring and reporting can help ensure that you’re on track with the budget. Make time to review travel expenses so that everything lines up as expected.
Keeping the travel policy current. As technologies and employee needs evolve, it’s important to routinely review and update your policy so that it remains relevant and effective. You’ll also want to ask employees regularly for feedback.
Streamlining the overall business travel experience doesn’t have to be complicated. By addressing critical elements like travel arrangements, expenses and reimbursement, and safety, you can create a functional travel policy that caters to the needs of both your company and your employees.
Are you looking for a way to manage corporate travel with ease? Uber for Business offers a range of features to help companies enforce their travel policies. With Uber for Business, companies can set spending limits for employees, track expenses, and receive detailed reports on employee travel.
The purpose of a company travel policy is to provide employees with guidelines for booking travel, managing expenses, and staying safe while traveling. A travel policy helps to ensure that all employees are following the same standards and procedures for travel, and it can help manage expenses and reduce risk for the company. By providing clear guidelines and resources for travel, a company travel policy can improve efficiency and reduce stress for employees who travel frequently.
What should be included in a travel policy? Down SmallA comprehensive travel policy should cover topics such as travel booking and arrangements, travel expenses and reimbursement, travel safety and security, and approval and reporting procedures. This includes guidelines for which modes of transportation are acceptable, which accommodations are approved, and the maximum amounts that can be reimbursed for meals, lodging, and transportation. It should also specify the process for obtaining approval for travel and for reporting expenses and submitting reimbursement requests.
What are corporate travel policy best practices? Down SmallCorporate travel policy best practices include investing the time needed to create a clear and comprehensive policy, prioritizing safety, leveraging technology, and continually reviewing and updating the policy. Together, these elements will help ensure that your travel policy remains relevant and effective.