#1 way employees can reduce travel costs
November 28, 2008 by Carol KatarskyPosted in: Best practices, Communication, Electronic payments, Hiring & training staff, In this week's e-newsletter, Internal controls, Latest news & views, T&E
Corporate cards save you time and reap hefty rebates for the company. So why do so few travelers comply?
The answer: Airline miles — and hotel points, cash back offers, or any number of other perks offered by the employees’ personal credit card issuers.
With the average business trip costing somewhere in the $1,500 range, even a modest rebate can be an attractive “bonus” to employees who are feeling the pinch of this economy. In fact, 74% of employees admitted they don’t always use their company’s preferred method of payment because of the perks they get from their personal cards.
Another 21% said they either never received a card, or the card isn’t accepted in some of the places they travel. That’s according to a recent survey by T&E magazine.
To get road warriors to use company-issued cards, you have two options: The carrot or the stick:
- If possible, incentivize travelers to use the cards. For example, you might get upper management to agree to kick a percentage of the cards’ rebates back to employees as profit sharing, or as a bump in their departmental budgets. If that’s not an option, an internal competition to see which department can set the highest bar for card compliance might help.
- If incentives don’t work, penalties might. Even a mild step, like flagging a department for non-compliance can send the message that the practice have to end. Key: Upper management has to demonstrate they’re behind your efforts, so make sure they’re on board first.
What have you tried to get more travelers to use company-issued credit and travel cards? Let us know in the comments what has — or hasn’t — worked for you.
Tags: Best practices, Cost cutting, Employee communication, Purchasing cards, T&E, Travel cards
