Last Updated on: March 7, 2023 at 9:24 am
A business travel management policy helps businesses to organise and regulate business trips effectively, provide appropriate support for the company’s employees on the road, and manage their travel-related expenses. If your company doesn’t have a business travel policy in place or if you’re struggling to implement it, you might be missing opportunities to strengthen internal relationships, improve your bottom line and possibly put the company at risk for legal action.
A good business travel policy needs to be clear and straightforward — so that employees know exactly how to comply with company standards as well as the company’s obligations to them while they are travelling. In this business travel management policy guide, we will look at some of the key elements of a successful business travel policy and provide you with a high-level checklist on how you can create one for your organisation.
Before creating a business travel management policy for your business, you must be sure about the purpose of creating such a document, as well as the form that the document will take. This requires strategic brainstorming among leaders in various departments such as HR, Finance, Admin, as well as senior management. This business travel management policy guide shows how everyone can work towards the same goal and create a document that aligns with the company’s objectives.
In this article, we'll take a look at:
Travel policies are a vital part of any corporate travel management program. They are designed to look after the interests of both businesses and employees. They set out clearly what is expected of travellers and provide a framework for them to follow when booking flights, accommodation arrangements, and other needs.
This creates accountability and transparency over expenses while allowing employees to take advantage of all the benefits that come with working remotely. A well-crafted business travel management policy will help your employees focus on work while they are travelling instead of spending time worrying about their expenses.
Having a well-rounded business travel management policy will help travel managers keep everyone in sync, safe and satisfied. It also helps protect the company from possible lawsuits and employees taking advantage of the company’s travel budget.
The purpose of a travel policy is to provide clear guidelines for employees who need to use their company’s travel services and for managers who must approve those expenses. A long, complicated policy will confuse employees and managers alike, slowing down approval processes and making mistakes more likely.
This may seem obvious, but many policies are written with a specific situation in mind and do not address other conditions that might arise. It’s better to be over-inclusive than under-inclusive in your travel policy. As a rule, if there’s a question about whether something is covered by the policy, it probably should be.
You are free to formulate a laxer or more structured travel policy depending on the nature of your company. However, it is recommended that you err on the side of flexibility because the travel industry is highly susceptible to changes. Adapting to these changes would be smoother if your travel policy were already pliable.
Once you have a high-level strategy for formulating your travel policy, the next step is to create the policy itself. If you are not sure how to go about yours, the following sub-sections contain a checklist of important items that should feature in the policy.
Feel free to modify this travel policy guide according to your company’s needs and objectives. You might want to add more items to your final document because this list only highlights the essentials.
A good travel policy introduction should have at least these essentials:
Clearly state the distinct types of travel expenses and explain if they will be covered completely or to a certain extent; if the latter, specify the extent. Some of the expenses a company might be obligated for employee business travel include the following:
Be as specific as possible when describing what can be reimbursed. For example, instead of saying “expenses incurred while travelling”, say something like “hotel accommodations, rental cars, and gas fees.” This makes it simpler for employees to submit their expenses and gives HR more clarity when reviewing them. If your company does not reimburse some types of expenses but has a travel subsidy program that pays half the cost of these items for employees who choose them such as business class travel, include this information as well.
TruTrip Tip: Or better yet, categorize the expenses. Segregating them will help in making the policy concise. Indicate what the direct travel costs are, indirect ones, and personal expenses.
Corporate travel solutions should simplify how employees should submit their expense reports and the policy should specify how long they must do so after returning from their trips – say, two weeks or thirty days. Also, state how long employees should wait for their reimbursements to be processed by the HR, travel, or finance department. You can’t have employees waiting six months to be reimbursed for travel expenses for instance. In addition, specify whether receipts and credit card statements are required for processing reimbursement requests – they usually are, but you can’t expect your employees to simply know that if you don’t state it.
Travel risks will always be there, and as travel managers, it should be in your best interest to guarantee welfare and safety. Having solid risk management protects not just the employees, from potential harm but also the company against possible legal and financial troubles.
The duty of care is the obligation that an employer has to its employees. This includes providing safe working conditions and taking reasonable steps to protect them from harm and injury caused by their work activities, including business travel. It normally includes a commitment to providing safe accommodation and transport for staff travelling on business. For example, the duty of care aspect of your business travel program may signify that you must provide employees with travel warnings or even prevent such trips whenever they plan to go to unstable regions.
This refers to the legal responsibility of an employer for any injuries caused by or arising out of their employee’s employment with them, including while they’re on business trips. It’s crucial to include provisions that protect your company against legal action following an incident while someone was on a business trip. Besides personal injuries, you should also have a policy in place for the liability a company incurs for acts committed by an employee while representing the company – for instance if an employee engages in an unethical act abroad.
Trutrip Tip: Make sure to include employees’ participation in the travel risk management, such as: updating the superiors of their whereabouts, signing a waiver and medical clearance. The travel risk management part of your policy should also include if the company will provide travel insurance.
If you want a travel policy that is strictly adhered to, then lay out the consequences for breaching it. These could include loss of bonus or pay, disciplinary action or even dismissal for repeat offenders. Offences might include overspending, not submitting reports on time, and acting unethically while representing the company.
Exceptions are a crucial part of any travel policy. If you don’t allow exceptions, then your policy will be highly restrictive for the employees. In your policy, including information on how employees can apply for exceptions and to whom such special requests should be directed. Examples of possible exceptions include the following:
For employees who might be travelling with a non-employee, such as a spouse, child, or friend, set guidelines concerning bookings and other expenses. Typically, the company covers only the employee’s expenses. But it’s important to state that to avoid any confusion.
Bleisure trips, a smart word play on business and leisure have taken the world of corporate travel. In global business travel, this trend is especially common with millennials and Gen Z workers. If your policy allows employees to extend their business travel for leisure, ensure that you have clear expectations regarding the time spent on business activities versus personal activities and expenses.
A common misconception is that all employees must follow the same travel policies and processes. However, this isn’t always the case. For example, senior executives may require a distinct authorisation model before they can embark on their journeys. Clarify this in your policy
Companies track their employees’ trips to ensure that all activities are kept within the budget. Ensure that your employees are aware of and consent to how you intend to track their trips.
Business travel policies should be automated wherever possible so that they are easy to use by employees at all levels within your organisation. This can help make it easier to manage compliance and reduce the risk of mistakes being made.
Businesses are increasingly adopting corporate travel management software solutions that allow them to manage their travel policies more efficiently. TruTrip’s software helps businesses to automate their travel policies to scale efficiency. To see how it can help your company, book a demo or sign up for the free trial and try it out.
TruTrip streamlines booking, management, and reporting for hassle-free business trips.