Do you need a business travel policy?
Do you need a business travel policy?
Sara Iannacone · 5/26/2023
In today's remote and distributed work environments, travel is integral for more organizations than ever before. Companies planning travel for the first time often wonder: "Do I need a business travel policy for my company?" Yes, you do. Here’s why—and how to make one.
In 2022, Morgan Stanley analysts conducted a business travel study to see what 2023 corporate travel levels may look like, and the results were highly positive. Over half of the teams surveyed said that this year, their travel budget would actually exceed that of 2019 with an average increase of 6-10%, with 60% anticipating a full recovery by the end of the year or having already reached pre-pandemic travel levels.
With that, you also have companies that are adding travel for the first time and increasing the number of team offsites for remote teams, with live events being the number one contributor to business travel this year, according to Deloitte.
So, with your teams hitting the road at an elevated rate with general travel inflation, how is your team protecting that business travel investment, as well as your team’s safety while they’re away from the office? That’s where a corporate travel policy comes in.
Today we’re sharing the benefits of implementing a corporate travel policy for your business and a useful template to start from. Read on, or simply download our business travel policy template to get started.
Benefits of a business travel policy for your company
The goal of a corporate travel policy is to set the expectations and guidelines for your team members while they’re representing your business out in the world. That said, there are a handful of benefits for the company when implementing this kind of documentation and policy.
Cost management and budget planning
A travel policy helps establish guidelines and limits for travel-related expenses, allowing your company to effectively manage and control costs associated with business trips, including group offsites, retreats, client events, and more. By defining reasonable spending thresholds and preferred vendors, companies can reduce unnecessary costs and negotiate better deals with preferred suppliers.
With that, it is also easier to forecast and allocate funds for travel much more efficiently.
Compliance and risk mitigation
It’s important to trust your team, but it’s better for everyone if safeguards are in place and expectations are communicated early. A travel policy helps minimize the risk of fraudulent or non-compliant activities during business travel, and provides you with clear grounds to resolve any issues that do take place.
Prioritization of employee safety and well-being
By including guidelines for travel insurance, emergency contacts, and contingency plans, you can ensure your duty of care obligations are met.
Streamlined processes and procedures
By outlining clear procedures for booking, reimbursement, and approval processes, a travel policy simplifies and streamlines the administrative tasks associated with business travel, reducing paperwork and saving time.
Benefits of a corporate travel policy for your employees
It’s not just your organization overall that benefits from a clear corporate travel policy. Your team will, too! Here’s how:
Consistent travel experiences
A well-structured travel policy establishes guidelines for selecting accommodations, transportation, and other travel arrangements, which means that each and every team member will have a consistent and comfortable experience for employees. Equal treatment is key for employee engagement and satisfaction!
Safety and security
Your employees want to know that they’re being taken care of by the organization. By showing them that you’re taking their safety and security seriously with trip insurance, emergency contacts, policies, and procedures for medical care while away, it will give them peace of mind and allow them to represent you well.
Simplification of tasks
Your team doesn’t want to wonder what they need to do when they’re volunteered for a client trip or awarded a seat at an upcoming conference. With a clear booking and reimbursement process, they fully understand expectations and what they need to do, so they’re not wasting their own precious time and resources trying to figure that out.
The challenges of implementing a travel policy at work
But, where there are positives, there are also potential downfalls. However, we have a few tips to avoid them.
Limited personalization
A standardized travel policy may not account for the varying needs and preferences of employees. Some team members may require specific accommodations or travel arrangements that fall outside the policy guidelines. Limitations on personalization may impact employee satisfaction and potentially hinder the success of certain business trips.
The fix: Include a clause that states that exceptions are entirely possible and just need to be approved first. Include who can be contacted and how to discuss unique situations.
Possible rigidity
A strict travel policy may limit your team’s flexibility when making travel arrangements. It could lead to frustrations if employees feel constrained by rigid rules that don't account for individual preferences or specific travel needs, or if the tools you’ve selected to book or plan travel aren’t easy to use. This could result in decreased engagement or satisfaction, which can impact morale.
The fix: Ensure your travel policy allows for autonomy while still protecting your team and travel investments.
Where do you begin when creating a corporate travel policy
As you can see, the benefit of having a clearly defined, well-written travel policy is two-fold. They take care of the business, and they take care of your team. And though they can present some challenges for your company, all of them can be solved by having the right procedures in place.
If you don’t have a travel policy already, the initiation and creation phase can feel daunting. Especially when you’re considering how to mitigate the potential cons, it's important to strike a balance between establishing necessary guidelines and allowing flexibility where appropriate.
Where do you even begin?
Well, our BoomPop team has put together a simple business travel policy template for you to use that allows for flexibility but careful consideration while your team travels. Simply download and tailor to meet your organization’s unique needs. Just note that this document and any associated materials do not constitute legal advice—just a useful starting point to help you along.
Want to learn more about business travel? Check out our corporate travel starter guide. Happy traveling!
