Leveraging the latest technology is a challenge that can pay off in terms of happier travelers and greater cost savings for businesses. Corporate travel policy best practices When writing a corporate travel policy document, one size doesn’t fit all. If your company has a corporate credit card program, then you might require all expense to be filed within 30 days so that you can pay the bank in time and avoid any late fees charges. Apart from the obvious benefits of reducing the cost for processing, other benefits of a well-defined policy include. Top 10 Best Practices for Implementing Your Corporate Travel Program The Implementation Process is the foundation for a successful travel program. Having a reasonable, unambiguous written travel and expense policy is essential to ensure that employees understand what is expected of them when traveling for business. There are multiple ways to structure this, you can implement a policy based on job titles, for example – VP and above can travel by business class. The T&E policy should have a clearly defined process for reporting the expense and the pre-requisites for submitting the expenses. Companies who explain the need for policies have a better compliance rate as compared to companies who just implement policies without first explaining the need. Certify has put together this useful how-to guide for building a corporate travel policy to help implement a structure for business travel in your company. You might want to start with a lower amount, for example, anything greater than $20 needs a receipt. Pricing. It should be clearly defined whether employees should exclusively use corporate-issued credit cards or whether an employee can use their personal credit card and cash for employee expenses. Best Practices for convicing non-compliant employees to follow your travel policy; Expert Advice on why your business travel policy compliance may be low and how the proper framework can help; Understand how helping your travelers understand why your travel policy exists is critical to success. Increasingly, more businesses are examining how company policies impact the experience of the business traveler. We work with each client to ensure that their travel policy is competitive, drives cost savings and enhances the travel experience. But business travel can be a complex and expensive process, and navigating all of its intricacies can be difficult. This is the most important piece of the T&E policy. Join me at 1:45 today to learn more about the Best Practices for implementing a Corporate Travel Policy. These new trends in business travel reflect the latest advances in internet technology and changes in how professionals approach business travel. Traveling for business can be a stressful experience, which is why incorporating wellness while on the road is an important addition to the travel policy. Business travel management is complex: managing costs|! For example, if an employee is traveling to the same location, again and again, you might want to audit that to check if this is a valid business need for that or the employee have relatives at that location! Factor in employee satisfaction. At Direct Travel, it’s important to us to work closely with you to boost travel policy adoption. Best Practices: 1. This allows your travelers time to complete unused trips and redeem unused tickets. d) Lodging: There are a couple of things to cover here, first what type of rooms can be booked by travelers, for example, standard vs. suite, etc. Finally all pictures we have been displayed in this website will inspire you all. The One-Pager: Corporate Travel Policy Best Practices. You can find guidelines on the IRS website. Focus on policy adoption. Company Team Careers Press Log In. Focus on adoption and not enforcement only, once you have policy fully adopted, you don’t need to enforce it! T&E policy implementation is no different from any other change initiative... 3. T&E expense as a percentage of total spend may vary from company to company, but this is always a top of the mind issue for most CFO’s because well-controlled T&E expenses can not only save company money but also prevents any fraud by employees and misuse of company assets. Keep It Clear. Given the rapidly changing environment of corporate travel, the smartest option is to have a procedure in place that will allow for frequent updates with minimal effort. The practices cited in the travel policy template are some of the quality practices as they include: Employee pleasant practices Details on reimbursable and nonreimbursable items Clear and easy to observe procedure & procedure for travel Information about security and safety Insurance Coverage. Business travel has become more and more common in today’s business world as companies have recognized its value. The success of corporate travel policy compliance is a measurement of booking behavior against the travel policy. Customization can often make a travel policy long and complex. However, when it comes to policy creation, one-size-fits-all is definitely not the name of the game. A travel policy must, first of all, be comprehensive. As per financial dictionary, “travel expenses are defined as Expenses incurred when a person conducts business away from home. Do you know what makes up a good corporate travel policy? This part of the policy should explain how travel costs should be paid for — whether through a centralized corporate account, the employee’s own personal credit card, or a mix of both. At Egencia, we’ve found that by following a series of best practices, companies can set the stage in these first, critical weeks to establish traveler adoption and compliance and meet their travel program goals. Navigator Blog It is good practice for the initial communication to go from CFO on why the need for T&E policy and how employees can provide feedback. Companies whether large or small realize the potential benefits of well managed T&E spend and invest in tools and technologies to better manage the process. It is important to have a well-defined T&E expense policy but equally important is to clearly articulate the objective of the policy both for the management as well as employees. In our experience, the T&E policy is well adopted in cases where a senior executive like CFO (Chief Financial Executive) is supporting the policy. Some companies prioritise cost savings while others value traveller comfort and convenience above all else. Many companies create these policies as an afterthought, which can lead to conflict, overspending and misunderstandings between management … First – all employees can easily understand what is expected out of them. Spouse/Companion Travel: The companies will not reimburse travel expenses incurred by a spouse or other individual accompanying Vendor on business. b) Preferred airlines:  If you have a preferred Contract with any airlines then make sure that you communicate that to employees. 2020 Travel Policy Best Practices, The Top 2020 Trends That Affect Travel Policy, More Streamlined Payment and Reimbursement, Questions to Consider When Creating a Robust Corporate Travel Policy. Some organisations like to plan business trips several weeks in advance, while others are willing to make bookings at the very last minute. Yet, even if you own your own 3-person company and employees only travel twice a year, you should consider creating a policy. Let’s look at some of the key … Any questions, concerns or suggestions regarding this travel policy may be directed to the Travel Manager, Carolyn Greenwood at x4310. Introduction. Our travel management experts use a consultative approach to work with you to create a comprehensive plan to manage your business travel policies and procedures, which includes regular compliance analysis. Join Now Contact Get Started ... Every employee is different — empowering your travelers to book the corporate travel options that best suit them while also making sure they understand what’s in and out of policy sets everyone up for success. When the summer travel season kicks off, some employees like to add a little pleasure to their businesses by tacking on personal travel time to a business trip. 2. 1. Keeping Your Team Apprised of Changes – How do you communicate changes to your team members? Those willing to take the lead are the ones that will prove to be more successful in the long run. A company’s travel program is increasingly seen as an important recruitment and retention tool. It makes people accountable because their spending is now reported and available to senior management for review. While perhaps most applicable to travel managers, these recommendations for improving adherence can be adopted by anyone who deals with travel expense reporting. In the event of a security incident, are you able to trace the intrusion to its source? When, if at all, are they booking business class flights? Business Travel and Expense Policy Best Practices. Savvy companies are signing on with providers that offer generous rewards to frequent travelers as a special incentive. For example – as per the 2017 index “the average 2016 cost of a hotel room, including all taxes and surcharges, was $177.36, up 2.6 percent from 2015 levels. You can decide to keep it simple by not allowing business class travel at all! Finally all pictures we have been displayed in this site will inspire you all. Try it for free. Your email address will not be published. Often, company savings are valued over traveler satisfaction. For higher adoption, keep it simple and brief and define as fewer rules as possible. 1. CORPORATE HR POLICY Title: Global Travel and Entertainment Expenses Number: 11.02 Date: April 10, 2018 Global Travel and Entertainment Policy Policy: This document is designed to act as a guideline for business travel and entertainment expense reimbursement. On an average, you can, Standardization leads to reduced exceptions and hence overall reduced cost to process an expense report. Travel Trends, expense benchmarks, policy pain points, and helpful tools. United States business [1]. The right level depends on the autonomy available to employees at each level of the organization hierarchy. Still, there are a few best practices you can follow to pitch your policy. For example, if you are exclusively using cards, then that gives you better visibility into T&E spend but then you are liable for paying late fees if employees don’t file expenses on time. What I mean by this is, since you have defined a process to report spending, it will be easier for you to understand the trends and identify if an employee is misusing company assets. When writing a corporate travel policy document, one size doesn’t fit all. Organizations across the board are looking for ways to improve their T&E process and the first step is to have a solid foundation in the form of a T&E policy. Now that might not be possible all the time, as per the research, the worst day to book a ticket is one day before the flight, followed by 2 days, 3 days until you get to 11 days out. 4. If an employee pays for a business-related travel expense, such as airfare, a rental car, hotel stay or meals, they are reimbursed by the company for that amount. By working with a travel management company, you can customize your online booking tool so that it not only gives more choices to travelers, but also guides them towards the most compliant options and seamlessly integrates the travel policy so that travelers don’t have to try to remember what is allowed and what is not. For best results, use clear, straightforward, and specific language. b) Ensure that employees understand the legal requirements from IRS regarding expenses, for example, the need for a business reason to incur an expense. This is the most important piece of the T&E policy. Some hotel chains might not negotiate a national contract so this could be a little bit of work depending upon the number of locations traveled by your employees. Corporate Travel Expense Policy And Corporate Travel Policy Best Practices can be beneficial inspiration for people who seek an image according specific topic, you will find it in this website. They are based on practices • As a best practice, we recommend an overlap of 4-6 weeks between your incumbent and new Travel Management Company. In fact, the Phocuswright 2015 Travel Manager Survey found that behind cost savings and policy compliance, 39% of respondents are concerned with managing traveler safety and upholding duty of care. As per research by travel booking site cheapair.com the best time to book a domestic flight is 49 days in advance. e) Booking cost and exceptions: The goal of this section should be to provide guidelines to employees on acceptable booking cost for airlines, lodging, and car rentals. Airports are prime spots for bad actors to target unwitting travelers. Corporate Travel, Uncategorized Here’s an infographic on Travel Policy Best Practices that summarizes some of the key considerations when building an effective travel policy. Following should be covered in the travel policy. One of the best ways to create a successful policy is to first understand the current practices at your company.Take the time to map out how travel is being purchased at your company right now and collect as much data as you can about traveler practices. You should start by thinking about the nature of your organisation – is it pretty strict or relaxed? This can sometimes make it difficult to track authorized travel and related expenses and reimbursements. this Corporate Travel Policy is available to all travelers, travel arrangers, accounts payable staff, and newly hired employees expected to travel. As per research from. Learn how to implement an effective Cost Control process. A Best Practices Guide to Corporate Travel Policy Compliance Developed n Cooperat on w th A rPlus Internat onal R s ng pr ces from suppl ers and ncreased scrut ny by sen or management of travel program costs are putt ng more pressure on corporate travel managers to del ver value. So, if you can’t do 49 days/ 7 weeks, aim for at least 2 weeks. 1. As you create or refine your travel policy, here are some questions to consider to make sure your policy maximizes cost savings without frustrating your employees. Best practices – Travel and Expense (T&E) Policy 1. A typical travel policywill cover items such as what vendors employees should use, how they should book travel, what costs are covered on a company card, and how reimbursement works. A well-defined and communicated policy leads to lower fraud rate and overall reduced spend. Your travel policy is the engine that powers everything related to your travel management process. economy for daytime travel, business class for night flights), employees have become accustomed to having these choices presented to them. Technology That Makes Your Corporate Travel Program Smart and User-friendly. Travel policies should clearly present easy-to-follow instructions on when and how to book travel, travel class (economy, business), hotel standard, how to pay and how to claim expenses. It helps budget owners to better understand how their T&E budget is consumed. 2 Secretary. Corporate travel policies are implemented to help manage budgets and provide clear guidelines for their employees to refer to when it comes to time and expense reporting, reimbursement, booking guidelines, traveler safety, security, and more. !| convenience and safety. Travel Best Practices Matthew Porcelli, CPP, security manager and consultant, sat down with Security Management to discuss ways to stay safe during travel, for those monitoring traveling employees and those traveling alike. Despite that connectivity and the ability to book travel by oneself, corporate travel agents are still as important as ever. Second – when you roll out the policy, there are always questions from employees, so you need someone to handle employee questions and feedback. Large decentralized companies … Make your corporate travel policy easy to remember by keeping it short and simple. Travel Best Practices Matthew Porcelli, CPP, security manager and consultant, sat down with Security Management to discuss ways to stay safe during travel, for those monitoring traveling employees and those traveling alike. Having a well-defined Travel and Expense (T&E) Policy can have many benefits. The company travel policy is becoming more streamlined and concise to encourage greater compliance. Unfortunately, the problem with most travel policies is simple: they are too looooong. Copyright 2020 by Direct Travel | Privacy Statement | Terms Of Use | GDPR Privacy Notice, What Should Be Included in a T&E Policy? Again, focus on adoption first. b) Ensure that employees understand the legal requirements from, Benefits of Travel and Expense (T&E) Policy, Though cost savings is not the only reason for which you should define a T&E policy, having a well-defined Travel and Expense policy does lead to, It helps you to understand key trends by way of gathering spend data (assuming you have an electronic system to capture T&E spend including vendor details). Considerations in 2020 and beyond include the ability to combine leisure activities with work and better integration with traveler preferences in online reservation apps, airlines, accommodations and loyalty programs. Company Customization vs. Readability – Customization can often make a travel policy long and complex. The list of categories generally evolves over time so you don’t need to capture everything on day one. Here are some best practices travel managers can consider … The most common reaction to such employee behavior is to act against such employees and set a precedence. Corporate travel policies are usually created by the Finance Manager and the Travel Manager and typically outline things like, if an employee can fly business class, how many weeks in advance should they book their trips, or if there are certain precautions employees must take when traveling alone. Corporate Travel Best Practices The world of corporate travel has changed dramatically in the last few years, thanks in part to the rise of internet travel booking sites. Use the data to understand traveler preferences … What is travel expense reimbursement? You should start by thinking about the nature of your organization – is it pretty strict or relaxed? Before we get into specific details on each of these best practices, let’s first look at why you need a T&E policy, to begin with. Business travel management is complex: managing costs|! The other way to handle this is to structure by travel time, for example – if the travel time is more than 8 hours then the business class is allowed. Set in place thorough policies on air, ancillary, hotels, trains and more to ensure that your travel policy … Required fields are marked *. !| corporate travel policies as well as traveller service|! 3. However, it’s important to make sure that duty of care protocols are in place. Whether you’re working from a sample policy, customizing it to fit your business, or updating your company’s older document to align with new travel practices and technologies, you’ll need to know what should be included. Once you have data about key vendors, you can go back and negotiate the cost with these vendors. Travel Trends, expense benchmarks, policy pain points, and helpful tools. Answers. There are multiple options available including external or internal help desk, travel booking tools or other travel websites like Expedia, individual airlines sites, etc. Travel and expense policy best practices: 8 tips. As a leading travel management company, Direct Travel offers comprehensive solutions for business travel, policy development, and enforcement. Your policy should clearly define your values and processes as an organization; ensuring that the company is the driver of your overall travel program and related costs, not the traveler. a) Define an expense reimbursement process for both employees and non-employees. We work with each client to ensure that their travel policy is competitive, drives … There were forms to fill out, security badge pictures to be taken, and a tour of the office building. A well-constructed document will get read and be used, increasing compliance as well as employee happiness. Airline Ticket Request; Airport Parking; Flight Check In – Boarding passes, Baggage, Flight … A shift in the demographics of corporate business travelers is driving the changing trends in travel policies. Assess your environment first, to understand the critical components that need to be monitored, and configure alerts if something goes wrong on one of … Thank you. c) Ensure that employees and their managers understand their duties and responsibilities regarding expenses. Corporate Travel Policy Best Practices January 31, 2020 by Direct Travel Whether you’re working from a sample policy, customizing it to fit your business, or updating your company’s older document to align with new travel practices and technologies, you’ll need to know what should be included. Employees It has also been altered by the ability of the traveler to connect to their company and to their corporate travel agent via … Let's take you through the best practices for corporate travel policy. Frame the travel policy against the needs of your company. This can sometimes make it difficult to track authorized travel and related expenses and reimbursements. Save my name, email, and website in this browser for the next time I comment. The goal of defining the objective of the policy is not just to define the rules for T&E expenses but to also ensure that employees clearly understand how to behave responsibly while spending company money. For the T&E policy to be successfully implemented, there must be a clear defined ownership of the policy. Make your corporate travel policy easy to remember by keeping it short and simple. Not following travel policy best practices is an easy—and shockingly common—way to cost your company large sums of money. All Vendor travel should be booked by the Vendor using the Vendor’s credit card and shall not be direct billed to the company. 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