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Travel Expenses: Dumb Things your Company has Done

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Old Feb 7, 2017, 11:32 am
  #151  
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Originally Posted by DeweyCheathem
The issue here is, how much of your productivity and work effort was detracted from the actual purpose of your job, to optimizing your use of the travel budget. Most companies have staff (or contract it out to a vendor) that is ostensibly expert in doing just that, whereas presumably, your core competency and reason for employment was something else.

Some aspects of travel cost savings can be trivially easy, such as staying over on a Saturday night when it knocks the airfare down by $1000 and only adds $300 in ancillary expenses, but others require more actual expertise in the field.
the issue is the corporate expectation ... if it's "ZERO" and you do it anyway, you'll probably get severely dinged on annual performance reviews and the like; if it's some nominal non-zero amount, and you and your immediate management/leadership agree that your performance isn't suffering, all good ... and if one of your annual performance goals/objectives is to manage your travel budget wisely, so much the better

again, prima facie evidence that "one-size-fits-all" policies are seldom universally effective
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Old Feb 7, 2017, 8:07 pm
  #152  
 
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Originally Posted by darthbimmer
2) Many people in business are reluctant to approve these kinds of arrangements not because they misunderstand win-win but because they're suspicious of abuse. Your two examples seem entirely fair. Not everyone else who asks for an extended trip is so scrupulous about allocating the costs fairly, though. Reasonable suspicion quickly gets written into policy requiring documentation and higher level approval. Bosses may regard that as too much of a burden to pursue in all but truly exceptional cases.
It's not just the issue of allocating costs fairly, but that the business portion of the trip still has to be the reason for the trip to begin with. We once had a dodgy senior VP who insisted on making a country visit to Australia at a time that coincided with the local school/summer holidays (so many folks were not around). We found out that he had also planned a 2 week holiday in the country after the meeting. So despite local feedback that the timing was not ideal, he still insisted on the visit, which made it appear that he was just getting the company to pay for his holiday flight (he didn't expense the holiday portion of course).

The following year he held his annual management meeting at a really nice resort location but which required multi-stop travel for everyone, and it took place less than a week before the major lunar holidays in Asia-Pac. And again, he had extended his stay for a personal vacation. Suffice to say most of the team was annoyed because of the inconvenient travel and timing, no matter how nice of a location it might have been.

The guy lost his job not too long after.
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Old Feb 7, 2017, 9:39 pm
  #153  
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Originally Posted by fimo
It's not just the issue of allocating costs fairly, but that the business portion of the trip still has to be the reason for the trip to begin with. We once had a dodgy senior VP who insisted on making a country visit to Australia at a time that coincided with the local school/summer holidays (so many folks were not around). We found out that he had also planned a 2 week holiday in the country after the meeting. So despite local feedback that the timing was not ideal, he still insisted on the visit, which made it appear that he was just getting the company to pay for his holiday flight (he didn't expense the holiday portion of course).

The following year he held his annual management meeting at a really nice resort location but which required multi-stop travel for everyone, and it took place less than a week before the major lunar holidays in Asia-Pac. And again, he had extended his stay for a personal vacation. Suffice to say most of the team was annoyed because of the inconvenient travel and timing, no matter how nice of a location it might have been.

The guy lost his job not too long after.
And in our company, my boss encourages me to time trips across the Atlantic to meet with my direct reports so that I can leverage the already-purchased ticket and reduce the personal cost of a family vacation. Our sales kickoff is in Europe this year and it's already been communicated that it's perfectly fine to tag vacation onto the beginning or the end of it.

There's a reason I've stayed with this firm for such a long time.
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Old Feb 8, 2017, 12:08 am
  #154  
 
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It's perfectly fine, and I have always approved it for my direct reports (and my bossed have extended the same courtesy to me), as long as you don't have people abusing it. Because sadly, it does happen, and ruins it for everybody else. Most of my peers have also enjoyed this from their bosses.

After this sr VP left, his PA (whom I've known for many years), told me of all the questionable expenses he tries to put on the company expense report! I really need not go into the ins and outs of this person, but it was pretty clear to many that he was often picking his holidays first, then arranging a business purpose after.
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Old Feb 8, 2017, 7:45 am
  #155  
 
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Originally Posted by DeweyCheathem
The issue here is, how much of your productivity and work effort was detracted from the actual purpose of your job, to optimizing your use of the travel budget. Most companies have staff (or contract it out to a vendor) that is ostensibly expert in doing just that,...
The important adjective here is "ostensibly". In my experience, the travel staff have been very inexperienced, and just following some rules which may or may not advance or detract from the cost or purpose of the trip.
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Old Feb 8, 2017, 9:29 am
  #156  
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Originally Posted by DeweyCheathem
The issue here is, how much of your productivity and work effort was detracted from the actual purpose of your job, to optimizing your use of the travel budget.
None. The work was done as expected.

The only optimization they cared about was staying within budget. Within that, they couldn't have cared less if I ate at McDonalds or a pricey steakhouse. So long as I came in under budget. If anything, productivity improved as I was generally well rested, fed and comfortable.
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Old Feb 8, 2017, 9:49 am
  #157  
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Originally Posted by DeweyCheathem
The issue here is, how much of your productivity and work effort was detracted from the actual purpose of your job, to optimizing your use of the travel budget. Most companies have staff (or contract it out to a vendor) that is ostensibly expert in doing just that, whereas presumably, your core competency and reason for employment was something else.

Some aspects of travel cost savings can be trivially easy, such as staying over on a Saturday night when it knocks the airfare down by $1000 and only adds $300 in ancillary expenses, but others require more actual expertise in the field.
I've never understood how someone else could book travel more efficiently than I could. This is one area that, thankfully, I've never been forced to offload to someone else. It's so personal and it's my schedule that I am trying to optimize.
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Old Feb 8, 2017, 12:12 pm
  #158  
 
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i don't think i saw it mentioned, but some places will willingly spend more to avoid any perception that they are paying for people to go on vacation. i see this especially with my insurance company clients. it does not matter if the flights are cheaper, they will not pay for an overstay.

Originally Posted by invisible
Friend of mine was sent from US to work at customer's location at Kuala Lumpur. The thing is - travel policy outlines min and max expenses per day for hotel, breakfast, lunch and dinner.

For first couple of days he got a room close to the customer's office so he could basically work from hotel to there. The thing was - hotel was like USD $50/night which was less than policy outlined - it should be within $100-$300/night range and he had trouble explaining why it was so low. He got the the same problem when he tried to expense $5 dinner at local hawker center.
rate minimums may have been put in place to prevent low-level managers (or clients) from forcing employees to stay/eat at places that were unsafe or unhealthy.
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Old Feb 9, 2017, 1:46 am
  #159  
 
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Originally Posted by crabbing
i don't think i saw it mentioned, but some places will willingly spend more to avoid any perception that they are paying for people to go on vacation. i see this especially with my insurance company clients. it does not matter if the flights are cheaper, they will not pay for an overstay.
This is indeed the case for companies which are exposed to significant regulatory and political risk.
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Old Feb 9, 2017, 11:24 pm
  #160  
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I think my company's HR department is pretty militant on requiring employees be offered their own rooms on business trips now, even if two employees are a married couple (from different teams on same trip), HR policy is to still offer them each their own room. Now of course, HR isn't going to stop anyone from willingly sharing rooms, but also no payout is given to employees for "saving" the company money.

Though generally, our executives are very big on the Trust concept, and hold honesty and integrity very highly. They generally don't care to over-police the expenses, but those who abuse the system just won't get invited to future trips.
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Old Feb 10, 2017, 7:32 am
  #161  
 
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We book travel with Concur. (Not uncommon) The system has limits on hotels and car rentals built in to comply with our travel policies. Sometimes, a hotel will be more expensive than policy allows-but would eliminate the need for a car rental. However, its such a PITA to go through that approval process, I often take the cheaper hotel and rent a car. (I want both sets of points anyway) System likes it. Company pays more.
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Old Feb 10, 2017, 1:59 pm
  #162  
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Originally Posted by fimo
It's not just the issue of allocating costs fairly, but that the business portion of the trip still has to be the reason for the trip to begin with. We once had a dodgy senior VP who insisted on making a country visit to Australia at a time that coincided with the local school/summer holidays (so many folks were not around). We found out that he had also planned a 2 week holiday in the country after the meeting. So despite local feedback that the timing was not ideal, he still insisted on the visit, which made it appear that he was just getting the company to pay for his holiday flight (he didn't expense the holiday portion of course).

The following year he held his annual management meeting at a really nice resort location but which required multi-stop travel for everyone, and it took place less than a week before the major lunar holidays in Asia-Pac. And again, he had extended his stay for a personal vacation. Suffice to say most of the team was annoyed because of the inconvenient travel and timing, no matter how nice of a location it might have been.

The guy lost his job not too long after.
Sounds like AustralAustralian politicians
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Old Feb 11, 2017, 11:48 pm
  #163  
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Originally Posted by CPRich
I haven't seen anyone suggest that it was mandatory. This, of course, would be ridiculous.
If it was mandatory, they would owe you wages for the extra time.
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Old Feb 12, 2017, 9:09 am
  #164  
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Originally Posted by mmff
This is indeed the case for companies which are exposed to significant regulatory and political risk.
This is an important issue in many regions and for many types of companies. It is why some businesses forbid employees from travelling in premium cabins even on free upgrades or upgrades for which the employee is prepared to personally pay; the use of high-end black car services even when not appreciably more than other modes of transportation and so on.

The perception can be a lot worse than the reality and documenting these things can be hard.

On the flip side of the coin, keeping top people happy means keeping them happy. Telling a top producer that he must fly next to the lav in steerage lest someone complain may not keep him at the company. If he jumps ship and 9 jobs are lost as a result, what do those 9 say?
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Old Feb 12, 2017, 9:25 am
  #165  
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Originally Posted by Often1
... The perception can be a lot worse than the reality and documenting these things can be hard.
exactly ... especially the former
Originally Posted by Often1
On the flip side of the coin, keeping top people happy means keeping them happy. Telling a top producer that he must fly next to the lav in steerage lest someone complain may not keep him at the company. If he jumps ship and 9 jobs are lost as a result, what do those 9 say?
or, perhaps worse, 9 high-revenue clients or customer accounts follow him to his new company ...
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