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Friday, December 27, 2024

Business travel gone rogue: why employees are bypassing company policies

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As business travel picks up, some companies are facing the challenge of employees bypassing company travel policies in favour of their own preferences, a practice known in the industry as “going rogue”.

This ranges from upgrading an economy flight ticket to a business class because economy was supposedly full or a booking made directly with an airline instead of through the corporate platform and a five-star hotel justified by its proximity to a conference venue.

According to Mummy Mafojane, Productive Operations Leader at FCM Travel, this shift towards unofficial booking practices is giving organisations more than just a financial headache.

“What we’re seeing isn’t simple rebellion. When staff routinely work around travel policies, it usually means those policies aren’t keeping pace with how business travel actually works today,“ she said.

Mafojane added that for companies already juggling currency fluctuations and complex cross-border operations, this shift is proving costly.

The business travel expert shares what’s really going on and some actionable steps to help companies prevent business travellers from bypassing company travel policies.

Nobody understands the rules

Mafojane highlighted that most staff are genuinely confused about what they can and can’t do.

She noted that Freenow’s recent research revealed a telling statistic that only 29% of employees actually understand their company’s travel policy.

“Many companies are still running with policies written years ago. The business world has changed dramatically, but these guidelines often haven’t kept up,“ she said.

Flexibility is non-negotiable

The expert also noted that the days of rigid travel schedules are fading fast as nearly half of all employees now rank flexible arrangements as their top priority, according to Freenow’s research. She said when policies don’t bend, people simply find alternatives.

“This often means lost negotiating power with suppliers and reduced visibility of employee movements, a serious concern for organisations managing duty of care obligations,” she added.

Expense processes are stuck in the past

Mafojane said that in a world of instant payments, outdated expense systems are pushing people to book elsewhere and research shows that 61% of employees want simpler reimbursement processes.

“Complex reimbursement processes don’t just frustrate employees, they create real business inefficiencies. Modern travel programmes need equally modern payment solutions,“ explained the expert.

Work and leisure lines are blurring

The rise of combined business and leisure travel isn’t just a trend, it’s reshaping how people view business trips.

Freenow’s research shows that 72% of employees want to combine business and leisure travel, but many companies haven’t figured out how to handle this shift.

“Fighting this trend isn’t the answer. Forward-thinking companies are creating clear frameworks that benefit both the business and their people,“ she said.

Policy engagement needs work

Lastly, the expert highlighted that traditional travel policies rarely inspire enthusiasm, yet there’s potential for change as 46% of employees said they’d be more interested if companies made it more engaging.

She said some organisations are seeing success with reward programmes and team-based initiatives.

“When staff bypass travel policies, the implications extend far beyond immediate costs. Companies lose their negotiating power. Finance teams spend valuable hours reconciling unauthorised bookings.

“Most critically, duty of care becomes significantly harder to manage,” said the expert.

In conclusion, Mafojane said that progressive companies are adapting their travel policies for today’s business reality and they’re replacing rigid rules with smart guidelines.

“They’re implementing technology that makes booking simple. And they’re acknowledging that business travel has fundamentally changed.

“The organisations getting this right aren’t just writing rules – they’re building travel programmes that work for their people. When you achieve that balance, compliance follows naturally,” she said.

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