Compliance of travel and expense policies can sometimes come down to how they’re communicated: rules are more likely to be followed if corporations clearly explain the rules, as well as the rationale behind them. However, with a multitude of employee-focused corporate communications including everything from organizational updates to meeting invites, travel and expense policies can sometimes get overlooked in an employee’s inbox.
As corporate travel once again heats up following easing global COVID restrictions, now may be a great time for travel and expense policymakers to revisit how they’re communicating their guidelines. Derived from responses to the Business Travel Trends & Insights survey, conducted by BTN Group Content Solutions in November 2021 featuring responses from 52 corporate travel managers and 52 frequent business travelers, five key communications principles may help your organization encourage employees to better understand and follow travel and expense policies:
Communicate throughout the year
Overall, travel managers are doing a good job explaining policy and expense requirements, and employees feel well-informed, according to two-thirds of business travelers surveyed in the Business Travel Trends & Insights survey in November. However, there is always room for improvement, especially when it comes to frequency. Employees may need policy and expense requirements explained more than once or even twice a year, but rather in real time as soon as changes are made. According to the survey, nearly six in 10 travel and expense managers follow up a few times a year or more, and 44% do so monthly. However, more than one-fifth admit to rarely or never ensuring employees are complying, which can be a big mistake.
One-quarter of travel managers communicate travel policy during onboarding, a time when fresh hires are inundated with new processes, tools, and expectations. Less than a quarter communicate procedures and guidelines every six months or more during the year. While this may seem scarce, business travelers report feeling informed by their companies and believe they are getting enough reminders. Seven in 10 said policy procedures and guidelines are communicated to them every six months or more, indicating that their organizations are at least attempting to keep employees current on policy news and changes.
Nevertheless, early and often may be critical in helping keep employees in compliance.
Use tools that employees prefer
To protect the integrity of program, it’s not just about when to communicate to employees, but also how. While travel managers might have their own preferences, it’s important to connect with employees using tools and methods they prefer.
More than three-quarters of travel managers use email/direct messaging to notify employees of any change in policy. Seven in 10 use the company portal and nearly six in 10 set reminders within the booking or expense platform when employees login or enter data. These are among the most used approaches for communication, but do travelers agree they are the best?
As it stands, yes, but there is even more interest in other, more direct ways to communicate as well. Three in 10 business travelers prefer to be notified through the booking and expense platform, which is half of the percentage of travel managers. And while nearly half of travelers prefer notification via email/direct messaging, three in 10 also want to hear direct from the manager, and one-quarter would like a company meeting. Employees are less interested in using the company portal or intranet, indicating that their company does not have such a platform, or they do have one, but it’s rarely used. Survey results indicate that while both travel managers and their travelers mostly agree on where to place notices, employees are also asking for more one-on-one or face-to-face reporting from their managers.
Explain the ramifications of violations
While more than half of travel and expense managers surveyed said their organizations communicated policies “OK, but could do better,” one-quarter rated their efforts as “poor, our communications needs an overhaul.” Just 19% of travel and expense managers surveyed rated their communications of T&E policies as “excellent, our employees are well-informed at all times.” Even when they understand company policies, some travelers may still go “rogue,” to find a cheaper fare or rate, more convenient option or booking through a preferred channel or supplier, according to various industry studies, including one from American Express Global Business Travel. It may seem innocent enough to some employees, but from the perspective of the organization, even a small amount of program leakage could have a negative effect. Adhering to policy can make the whole process, from booking to traveling to reimbursement, a lot smoother. If organizations want to move their compliance rate higher, it may make sense for decision-makers to levy consequences for non-compliance.
One way to encourage compliance is to confirm that employees have read the policies by asking them to sign a statement. Four in 10 travel managers require employees to sign a statement indicating they read and understand policies. More than half of them agree that employee understanding and compliance with policies are good while only 10% said it wasn’t good. Four in 10 employees agree that their organization have them sign acknowledgment of the policies existence.
While technology (and system alerts) are often the most convenient way to ensure compliance, seven in 10 respondents rely on each manager to keep their employees in tow. Although most companies will correct and move on, four in 10 travel managers said errant employees are not always reimbursed for their travel expenses and employees who do not comply are reprimanded. Employees are getting the message: four in 10 would expect to be reprimanded and one quarter said may not get reimbursed for violations. But one in five also said they are rewarded based on level of compliance, offering a positive alternative to reprimands.
Communicate how compliance benefits the company and employees
To gain employee buy-in and compliance to policies, consider how best to communicate the rationale and how the company and/or employee benefits from various supplier programs. Travel and expense managers may want to explain how the company needs to meet quotas with preferred suppliers to achieve deeper discounts, savings or enhanced services. While an employee may think that booking a lower fare or rate offered by a non-preferred supplier, or via a non-preferred channel, saves the company money, such rogue bookings may cost a company that misses agreement quotas. Booking outside a preferred online booking tool or travel management company may make it difficult for the company to provide a duty of care program to an employee. Whatever the reason, it’s important for travelers to comprehend that the overarching goals of programs are not to limit their movements or control behavior. Instead, employees should want to comply for the good of the company overall and their own benefit. Sometimes, they just need to understand what “doing the right thing” entails. Unfortunately, companies may not be doing enough in explaining program benefits. Since top business priorities for travel managers are to increase duty of care and well-being, as well as meet sustainability objectives, according to survey results, companies should review how they communicate the rationale or “whys” of policies to gain employee buy-in and higher compliance.
Garner feedback and make amendments
Arguably the most important tactic for refining programs and communicating their value to employees is by garnering employee feedback. Four in 10 travel managers solicit feedback after each trip and fewer (37%) encourage traveler feedback during regular meetings and conversations. Is that enough? It may not be, since when asked how they measure such feedback, most travel managers take a more reactive, rather than proactive, approach. More than half of travel managers said business travelers provide feedback on their own when necessary, and three in 10 admitted they don’t ask for feedback at all regarding overall policy. Even when they do solicit feedback, it may be overlooked. Only 25% said travel policy is reviewed based on employee feedback. While business travelers are much more likely to agree their organization solicits feedback from them, there is still room for companies to be more proactive about soliciting comments and ideas, and, when appropriate, implementing them. Open, two-way communication is often a key to succeed at selling a program’s benefits.
Good employee communication of travel and expense policies rely on a confluence of factors. These include more frequent reminders and updates (as changes occur) and simple, preferred methods of communication (including direct word from managers). Travelers are encouraged to comply when they know there are ramifications, not just to them but to the organization overall. When they are clued into company strategy regarding cost savings, sustainability goals, and other measures, they are more likely to give consent. Now is the time for companies to reevaluate their communication efforts. More than three-quarters of travel managers said travelers will need to be retrained on policy practices and safety once travel resumes (or builds) after the first two years of COVID.
Good communication of travel and expense policies requires a tactical approach, not a bombardment of rules or system violations without explanation. Successful programs provide employees with timely notifications and updates, garner feedback, and convey travel’s role in the corporation’s overall success so everybody wins.