Travel Policy Advice
Does your travel policy invite issues by leaving too much room for employee interpretation? Besides regular battles over missing receipts and other infractions, a big headache for those who manage travel and entertainment (T&E) expenses—often accounts payable—is employees who incur unreasonable or out-of-policy expenses. Travelers and approvers alike should receive related training and be held accountable for their respective role. If there are no consequences for outrageous expenses, then nothing will deter them from being a repeat offender.
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Characteristics of a Strong Travel Policy
Consistent enforcement should be a given. Beyond that, ensure your organization strives for the following elements.
Regular Reviews and Updates
Your policy should keep pace with the changing travel landscape. Reviewing it at least annually and making updates as necessary can prevent headaches.
Clarity and Specificity
It is not possible or recommended to try and address every potential situation within a travel policy. There are too many variables. However, adequate detail helps minimize conflicts and debates with travelers. For example, an organization could include a “prohibited expenses” section of the policy.
ABC Company will not reimburse/pay for:
tickets for driving violations or parking infractions
personal car repairs
gifts for family and/or friends
personal services (e.g., spa services)
personal items (e.g., clothing, medicine)
personal entertainment (e.g., concert tickets, gambling)
pet care or child care
expenses incurred by non-employee guests of the traveler
expenses occurring during non-travel days
The above bullet points might sound crazy, but, if you have dealt with employee travel, you have probably encountered some of these expenses during the review process.
Flexibility
Help bring some peace to both your reimbursement/review team and travelers. Make your travel policy current and clear, but also flexible. This third piece may sound like a contradiction to consistent enforcement, but it means allowing reasonable exceptions when approved by an appropriate management member, especially when the traveler saves the organization money overall. For example, a traveler taking a red-eye flight when it is the cheapest option, but then purchasing a seat upgrade to be more comfortable. It also saves the cost of another night of lodging.
“Reasonable” can be subject to interpretation, which is why it is important to be clear about prohibited expenses (things for which exceptions are not allowed), as well as train your management-level travel approvers in order to convey your expectations. Having the flexibility within your policy to make things a little better for travelers can ease their stress and increase job satisfaction.