Managers should approve every travel and expense before it's purchased. Entry level employees may use business credit cards as gifting opportunities, dinners, or other attractive reasons. However, it may not align with the company. Senior managers should always sign off and give their consent first to ensure it benefits the business and not just the employee.
Early on I had no idea there were federal guideline for reimbursing mileage for business related travel. Once I became aware of this is saved me so many headaches. I used to have different negotiated mileage policies with different employees and contractors. Some put more emphasis on fuel consumption where some cared more about the cumulative wear and tear on their vehicles. After I learned that the federal government and IRS have guidelines for this I immediately put them into action. This made everything uniform and organized, and it was fair and equal for everyone involved. Some employees had an improvement in their mileage reimbursements while some had small disadvantages. However, once I pointed out it was a federal guideline, they saw the logic and accepted the new policy. Anytime you are starting out, I suggest researching guidelines set by local, state, and federal governments. Saves a ton of time in the long run! Please let me know if you have any questions!
Allow employees to be reimbursed for AirBnBs. While many businesses maintain that employees will only be reimbursed for hotel expenses, they may not be the cheapest option. AirBnBs are increasingly a viable option for business travel and can station your employees closer to their event for less cost. While it might take a little extra paperwork, it’s certainly worth it, as travel expenses can stack up.
Instead of managing the hassles associated with travel reimbursements, give team members their per-diems in advance. Determine how many days they are traveling and give them whatever the appropriate amount is before they leave. (We use Motivosity to do this with the "Thanks Matters Card", which is a card dedicated to each individual employee where they can spend their rewards and recognition dollars. It also supports allocations like per-diems.) This way they don't have to worry about receipts and you don't have to worry about approvals. It simplifies the whole experience!
The ideal practice for Travel and Expense Policy implementation is keeping it as simple as possible. Keep the language simple so that every employee can make sense of it. It’s observed widely that when complex terms and language are used, employees often get confused. They either don’t avail most of the benefits of the policy or they misuse it. Either way, it’s a headache for employers and employees. Hence, the wise move to make here is to keep the language very simple. Make all the terms and conditions very clear so that employees are able to understand what’s allowed/covered and what’s not.
There is no one-size-fits-all answer to this question, as your company's best travel and expense policy will vary depending on your specific business needs. However, it is essential to consider what types of travel and expenses your company typically incurs. For example, will you be reimbursing employees for airfare, hotel stays, rental cars, meals, taxis, or other incidentals? What spending limits make sense for each category? It's essential to set clear guidelines so employees know what expenses are covered and how much they can spend.
Director of Aesthetics at Nourishing Biologicals
Answered 4 years ago
Be sure the policy is easy to read and follow. Anything that's over a page in fine print will lose the reader. The document should be very clear and include important details. No team member will read the policy for hours on end. Be concise and to the point.