Travel Perks

by Jessica Flora

When an employee travels, what expenses do you pay, and how much do you allow to be spent? All employers face the challenge of creating a travel policy that is generous enough to cover employees’ expenses but strict enough that they will not splurge.

The survey says:

According to AAIM Employers’ Association’s 2015-2016 Policies and Benefits Survey of 150 St. Louis and central Illinois businesses, 86.6% of employers cover meal expenses, 85.7% cover lodging and 73.2% cover car rental. On the other hand, only 4.5% cover an upgrade to first-class/business-class airfare.
What to consider when creating a travel policy:

• Involve multiple teams when creating the policy. This type of policy goes beyond one department. It is important to receive feedback from multiple segments of the company, including the management team, finance, human resources and the actual travelers.

• Use cost control measures. There need to be controls and maximum reimbursement amounts in place so employees do not abuse the policy.

• Require detailed receipts. Requesting a detailed receipt from a restaurant will ensure the employee is not charging items that are against policy.

• Enforce the policy. If the policy is relaxed and not enforced, employees will continue to abuse it. Ensuring that you have a discipline process in place, and are following it, will cut down on abuse.

Jessica Flora, PHR (solutions.team@aaimea.org) is on the Research and Solutions Team for AAIM Employers’ Association, which helps Missouri and Illinois companies manage their people and processes.