A company travel policy is designed to outline a business’s travel arrangement procedures and guidelines, stipulating which travel expenses are paid for by the company and how to manage the reimbursement process. A company travel policy should include a purpose statement, scope, authorization and reimbursement section, and travel arrangement processes
Nobody reads the company travel policy – Build a modern travel policy
Why is a corporate travel policy important?
A corporate travel policy is important because it enables employees to understand travel directions clearly. Businesses create these kinds of blueprints for the following essential reasons:
What is a corporate travel policy?
A corporate travel policy, also called a travel and expense policy, is a set of official guidelines for any work-related trips. Business leaders create this type of policy to explain to employees the proper procedures for arranging their flights, hotels and other travel-related plans. Specifically, these documents outline how employees might pay for travel expenses and which costs a business covers. Organizations can provide money in advance or offer reimbursements. Because companies may require employees to journey to other states or countries for meetings or other job tasks, its important they provide financial support and guidance for doing so.
What is a corporate travel policy used for?
A corporate travel policy is used for employees going on a business trip. As work-related excursions are sometimes necessary, firms have to plan and pay for them. Companies may ask team members to travel for the following reasons:
A corporate travel policy is also used for confirming protocols for various journey arrangements. Traveling to another city, state or especially country can involve many legal and safety rules, so its important to plan the course well. Visits are also costly, so its good that businesses tell employees how to afford them. Here are some topics a corporate travel policy covers:
How to build a corporate travel policy
Building a corporate travel policy is a necessary task for many business leaders, and changing it over time to account for new knowledge is also common. While policies can look different based on a companys structure, culture and industry, here are seven general steps for how to construct a corporate travel policy:
1. Write an introduction and purpose statement
An introduction and purpose statement is a key part of any official company document. It allows you to introduce your intentions and explain the point of the policy to readers. For travel policies, the goal is to keep team members safe and ensure they have a productive, pleasant and efficient experience on their trip.
2. Outline processes for gaining permissions
Provide the steps for how an employee begins the travel planning process. Its a good idea to mention the point person for business trips, to whom employees can direct questions they have. Along with choosing one or more managers responsible for approving trips, you can also reference the amount of advance notice your company requires, whether its weeks or months. Having a process for gaining permission ensures a system of checks and balances at the workplace and enables employees to spend company money appropriately.
3. Explain the payment process
Before an employee can even book a flight, they need to know how to pay for their travel expenses. Define a process that works best for your business, whether its offering cash advances before journeys or providing reimbursements afterward. When deciding on this topic, make sure to keep the financial situation of your employees in mind.
In this stage, its also a good idea to define the reporting rules for travel expenses. Specify how employees can request reimbursement and whether they need to keep their receipts. Convey what information they may record in an expense report, such as date, amount, category, location and business purpose. You can also outline a time frame for submitting reports for reimbursement and explain whether reimbursement is cash, check or direct deposit.
4. Discuss the travel arrangement protocols
Be sure to include any relevant travel arrangement protocols in detail. Being specific and clear helps employees know exactly what a company pays for. You might want to clarify that travel payments are for business-related activities only, such as events, meetings and trainings. Here are some factors you might mention:
5. Proofread and revise
Proofread the policy to ensure it is free of errors. You may also want to ask trusted colleagues to read it over and ensure it makes sense. Collaborating with others can involve diverse perspectives and make it more likely the policy is comprehensive. For example, another person may think of a different important travel arrangement to include.
6. Convey it to employees
Its critical to communicate your corporate travel policy to all applicable employees and make it readily available so they can know about it. Make an announcement on your internal messaging system about the new policy and include an access link. Highlight its importance and clarify which person to ask if they have questions. Its also beneficial to include the document in the employee handbook, so team members can revisit it whenever they need it.
7. Improve it if necessary
Creating a policy is a great idea, but remember, you can always make adjustments if necessary. Its good to continually improve the document based on encountering new situations or learning information. Consider asking for employee feedback on the travel policy to see if there are any big issues with it so you can resolve them. Its important to consider the needs of employees when developing the policy further. You can also measure the average expenses of business trips to determine if you need to shift monetary coverage up or down.
Sample corporate travel policy
Reading a sample of a corporate travel policy may help you understand whats typically on it and explore how it works. You can then write a policy of your own that fits with the needs and setting of your business. Heres an example policy to guide you in your efforts:
INTRODUCTION
If you need to travel for business-related reasons, we want to provide you with safe travel arrangements so you can have a productive, enjoyable experience. Our corporate travel policy instructs you on the protocols for a company-paid trip.
PURPOSE
The purpose of this policy is to describe the approval process for journeys, discuss the payment processes for travel expenses and explain our regulations for travel arrangements.
TRAVEL APPROVAL
See your team leader to gain approval for your travel plans at least four weeks in advance of the date you plan to leave.
PAYMENT PROTOCOLS
Employees can gain file claims to gain reimbursements on their traveling expenses. They need to submit their receipts and fill out the date, reason and amount for each purchase. If you require a cash advance, speak to your team lead.
CHILD CARE
Please let us know if you will be needing child care services while youre away.
TRAVEL
We provide reimbursements for the standard tickets for air and rail travel. We also provide up to $500 for car rental and parking or taxi during your trip.
ACCOMMODATIONS
We cover standard hotel accommodations for up to $200 a night, but this is flexible depending on your location.
MEALS
We provide funding for breakfast, lunch, dinner and client outings. We also reimburse up to 20% tips.
OTHER FEES
We will cover currency conversion and cellular fees, as necessary.
SAFETY AND SECURITY
We provide travel insurance to ensure you are safe and secure in case of emergencies. This covers theft, cancelations and medical issues.
ENTERTAINMENT
We provide a fixed sum of $200 for entertainment costs.
FAQ
What should a corporate travel policy include?
- Airline, rail, hotel and rental car reservations.
- The use of other transportation, such as taxi cabs.
- Rules for on-site spending, including meals, entertainment and phone calls.
- Security relating to travel – both in terms of personal safety and work materials.
How do I create a corporate travel policy?
What is a travel and expense policy?
How do you reimburse employees for travel expenses?
