Applying Travel Policy for Maximum Effect
It's time to wrap up our discussion of the “Six C's” of a strong T&E policy. In past weeks we're covered the role of Culture, Content, and Comprehensiveness on the policy itself. Today we'll discuss the how the policy is applied via Communication, Control, and Compliance.
Communication measures how the policy is distributed, how often it is updated, and who is held accountable for understanding and applying the policy. For maximum effectiveness policies should be communicated in multiple ways with visible senior management support, and to all travel stakeholders throughout the organization.
Control is measured by the strength, clarity, and effectiveness of the policy language, and provides methods to monitor compliance and deal with non-compliance. A company does not exert control if its T&E policy permits travelers to book outside of the designated travel agency, user personal cards for payment, receive reimbursement without appropriate receipts, use non-preferred vendors, etc.
Compliance is the measurement of how well travelers are adhering to policy requirements. The financial and administrative benefits of a strong T&E policy cannot be realized if the policy is not judiciously followed and enforced. Key opportunities to achieve maximum policy compliance and cost savings include: mandated use of one designated travel agency, mandated use of corporate payment systems, expected use of preferred vendors, controls on class of air service flown, meal and hotel spending limits, submission of receipts for reimbursement, and limits on the time frame for expense submission.
When a T&E policy reflects corporate culture, addresses the required topics, includes comprehensive information, exerts a high degree of control, and is communicated effectively, the result is:
Curtailing costs does not necessarily mean curtailing employee comfort, convenience, or productivity – it is possible to get more out of fewer dollars with a carefully considered and conscientiously applied T&E policy. Companies with loosely written policies, or restrictive written policies but little monitoring or enforcement, are likely to incur higher than necessary costs with little opportunity to spot or curb abuse.
Senior management can often be very sensitive to employee reaction to new or revised T&E policies, especially reaction by frequent travelers. While there is some basis for this sensitivity, all employees live and work under rules and guidelines daily, and initial negative reaction usually quickly gives way to acceptance.
For a thorough review of your T&E policy please contact your Travel-On account manager.
Communication measures how the policy is distributed, how often it is updated, and who is held accountable for understanding and applying the policy. For maximum effectiveness policies should be communicated in multiple ways with visible senior management support, and to all travel stakeholders throughout the organization.
Control is measured by the strength, clarity, and effectiveness of the policy language, and provides methods to monitor compliance and deal with non-compliance. A company does not exert control if its T&E policy permits travelers to book outside of the designated travel agency, user personal cards for payment, receive reimbursement without appropriate receipts, use non-preferred vendors, etc.
Compliance is the measurement of how well travelers are adhering to policy requirements. The financial and administrative benefits of a strong T&E policy cannot be realized if the policy is not judiciously followed and enforced. Key opportunities to achieve maximum policy compliance and cost savings include: mandated use of one designated travel agency, mandated use of corporate payment systems, expected use of preferred vendors, controls on class of air service flown, meal and hotel spending limits, submission of receipts for reimbursement, and limits on the time frame for expense submission.
When a T&E policy reflects corporate culture, addresses the required topics, includes comprehensive information, exerts a high degree of control, and is communicated effectively, the result is:
- a high level of traveler compliance
- better understanding of management expectations
- market share commitments that are met
- comprehensive management reporting available for monitoring, budgeting, and forecasting
Curtailing costs does not necessarily mean curtailing employee comfort, convenience, or productivity – it is possible to get more out of fewer dollars with a carefully considered and conscientiously applied T&E policy. Companies with loosely written policies, or restrictive written policies but little monitoring or enforcement, are likely to incur higher than necessary costs with little opportunity to spot or curb abuse.
Senior management can often be very sensitive to employee reaction to new or revised T&E policies, especially reaction by frequent travelers. While there is some basis for this sensitivity, all employees live and work under rules and guidelines daily, and initial negative reaction usually quickly gives way to acceptance.
For a thorough review of your T&E policy please contact your Travel-On account manager.
Labels: T and E Policy
Content is the range of topics addressed in the T&E policy. Critical components include: general topics such as purpose and scope of the policy; making travel arrangements; air, car, hotel, other transportation; meals and entertainment; communication-related expenses; group or meeting travel, payment methods, required documentation, and expense reporting. 