Tips for CFOs To Improve Travel Policy Compliance

Having a travel policy in place is essentially of no value to Canadian businesses if compliance isn’t enforced. Travel policies tend to be one of those areas that a lot of employees see as “gray,” meaning they don’t necessarily think they have to follow it.

Unfortunately, this non-compliance can lead to expense and budgeting problems, and it can also incite a culture of non-compliance and blurring of ethical lines, in other areas outside of corporate travel.

A big area of focus for Canadian CFOs and travel managers is enforcing travel policy compliance, but how can they make that happen? The following are some actionable ways to boost compliance.

Expense Management Software

Without a doubt, one of the most valuable things CFOs can do in terms of travel and expense policy compliance is use advanced Canadian expense report software. In so many ways using a great platform forces compliance on the part of employees, and allows CFOs and other key stakeholders to have complete visibility and see where there are potential red flags.

Having good expense software can also clear up confusion employees might have which leads to inadvertent non-compliance.

When you automate your T&E system, then you’re going to have not only visibility, but you’re going to have the necessary data available to you in real-time. When you’re selecting T&E software, make sure you think about how convenient it’s going to be for employees, because this will make them more likely to be compliant.

Rethink Your Policy

It’s a good time for CFOs to re-evaluate current policies and ensure they’re in line with budgetary and strategic objectives. A big majority of CFOs and travel managers don’t feel like they’re yet getting the level of compliance they want, so by working together and ensuring the policy addresses everything necessary for adequate cost control, it can go a long way.

Most Canadian and worldwide companies are moving in the direction of more sophisticated travel policies that are aligned with multiple strategic objectives in addition to cost control.

Policies need to be specific, they need to outline what the consequences are for non-compliance, and they need to let employees know how their level of compliance will be measured.

By having a detailed travel policy, companies will be better equipped to ensure consistency while also improving compliance.

Measure Employee Satisfaction

Finally, when it comes to compliance, the last place a lot of CFOs and travel managers often look is employee satisfaction. They’re worried about saving money, not the happiness of employees, but overlooking this important area can be a big mistake.

It’s important to regularly measure not just performance factors related to costs and spending, but also how employees feel about things. The reason for this is because if employees are happy and satisfied with travel policies, they’re more likely to be compliant. If they find that it’s burdensome or problematic, they’re going to be less likely to be compliant.

You want happy employees not just to ensure compliance, but also to make sure they’re able to meet the outlined objectives when traveling.