Cutting travel expenses
Q: How do I cut travel costs for my company? Our corporate travel agency does not seem to be giving us the best deals, some of our employees try to abuse the system by expensing more than they are supposed to and it is becoming complicated to keep track of transactions when everyone uses a different method to arrange their trips.
A: There are three parts to your question: 1) what constitutes a "best deal"? 2) what system to use to efficiently track travel costs? 3) what to do about dishonest employees? Let's take one at a time. 1) In today's Price.com world, someone is always finding an incredibly cheap way to get somewhere. However, many of those bargains involve a multitude of connections with increased risk of delayed/missed planes; red–eye flights; and/or willingness to have plans be up in the air until the last minute. As management, you need to decide what priorities you are looking for, inform any travel agent you use accordingly, and expect to pay the price. 2) If your business is at all sizable, you definitely need one set procedure for ALL employees to follow for expensing travel. The financial software you already use may include such a system, or check with your business manager or accountant. Pick the simplest system that serves your business travel needs and then have everyone from the top down follow it exactly! Have an explicit policy of verbal warning, written warning, etc. for delayed or inadequate documentation and follow–through on the paperwork involved. 3) Once you have a single, clear and well–introduced travel expense policy in place, you may find a majority of your employees honestly reporting their expenses, and the few exceptions being appropriately disciplined. However, if dishonesty is still rampant, you'd need to read the handwriting on the wall re your corporate culture. It would be important to look at how management's behavior is perceived and what underlying dissatisfaction(s) the travel budget padding represents. The very fact that you are asking for advice in this area bodes well for you and your company. Good luck.
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