If your corporate travel policy fails, it’s a sign of multiple issues. There may be many reasons why a corporate travel policy fails, including clunky payment systems, complicated procedures, and stringent rules. Plus, you may be liable if your employees do not comply with the policy and don’t meet business objectives.
It’s not surprising that T&E is the largest expense after employees’ salaries. Having a good and easy-to-implement travel policy can make a significant impact on an organization’s bottom line. Thus, implementing a travel policy that is easy to comply with will help you avoid costly mistakes. To do this, ask yourself the following questions about your travel policy:
Is Your Existing T&E Policy Understandable?
If you don’t bridge the gaps in your T&E policy, it is difficult for your employees to use it correctly. . However, this should not restrict you from doing anything. Get a detailed review from your travel team to see why the gaps persist. By analyzing travelers’ feedback , you can pinpoint where your traveler is not abiding by the company’s policy, or where the policy needs revision. On the flip side, you will be able to figure out ways to curb extra spending. The ideal way is to set clear objectives and define simple procedures for business travelers.
Is Your Travel Policy Ambiguous?
Ambiguity is one of the biggest reasons for travel policy failure. It is better to outline the steps your business travelers should take in case of unplanned scenarios. In today’s travel, it is quite common to deal with flight cancellations. Strategic travel planning will help travelers know how to deal with scenarios that pose business fraud.
Are Your Business Objectives Clearly Outlined?
Sometimes, companies are not sure of the goals they want to achieve. Understanding your travel and entertainment expense policy will help you get a clear idea on priorities. This way, you can align your business objectives and narrow everything to meet your top strategic goals.
Are Your Employees Informed?
Ensure the travel policy you outline fits your company. You’ll have to consider the opinion of stakeholders from different departments and frequent travelers while defining T&E policy. In this way, you can create a set of policies that works best for everyone. If your employees are not using the current system due to its complexity, travel and expense report software could be the best option for you.
Are You Leveraging the Right Technology?
Technology keeps changing all the time. A lot of online tools have come up in the market to streamline booking and reimbursement processes; all these can impact your travel and entertainment management. Implementing a tool like expense report software can save money and increase the comfort of both employees and employers. You should also consider what other companies are doing. An experienced T&E company can provide you with the best practices and key points in this area. You should understand what technology and automation would fit your organization.
Are You Utilizing Pre-trip Expense Planning?
Business travelers plan their trips and submit expenses for reimbursement upon return. Here, there is nothing to be approved prior to business travel. In this case, there is no chance to plan budget, and there is little communication between travelers and managers.
Pre-trip expense planning is very important, as it provides an opportunity for you to align trip costs with the company’s budget before actual spending happens. With the pre-trip approval process, employees will understand how to spend money while they are on a business trip.
If you answered no to any of these questions, then you could be in trouble. Now is the time to embrace the best practices and avoid travel policy mistakes.
Sarath Pendyala heads the content marketing department at SutiSoft. He’s interested in technology & SaaS trends and frequently blogs on multiple platforms. He is a thought-leader in cloud-integration and business technologies.