Incentives to cut costs of travel help to boost company profits
By Susan Avery -- Purchasing, 4/9/2009 2:00:00 AM
Providing incentives to get employees to make smarter travel choices that save money is one way companies can increase profits, says American Express Business Travel, in a new white paper, "Travel as a Strategic Investment: Managing Travel Through A Recession."
It's an idea already adopted by some travel buyers.
Pam McTeer, strategic sourcing manager at MillerCoors, encourages compliance with travel policy through positive reinforcement, such as letting employees pocket some savings when they opt to travel coach rather than business class on international flights. "I think we have to balance measures that save money with employee satisfaction," she says.
Here are some new cost-savings recommendations from the American Express Business Travel white paper:
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Rent a car. Ask employees to rent instead of reimbursing at the standard mileage reimbursement rate (Save difference of 60¢ a mile and rental rate).
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Make the most of 14 seconds. Managers on average spend 14 seconds reviewing an expense reimbursement form. Put technology in place that ensures managers are not approving reimbursements beyond policy (Added trip fees can increase trip cost 7%).
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Give employee cash. Provide gain sharing for trading down on flight class: Offer employees a percentage of savings by trading a seat in business class for coach.
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Travel like an entrepreneur. Encourage employees to eat breakfast at home, drive themselves to the airport, stay with family/friends when possible, etc. (Could save a company an estimated $600–700 for a one night stay-over).
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Change time on package shipping. Educate employees that 10 a.m. delivery is the more cost-effective choice.
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