Since the businesses have started to expand exponentially, corporate trips have become a common sight. Every year millions of employees travel worldwide to achieve growth and expansion. They travel to foreign lands and participate in client meetings, trade events, seminars, training programs, and acquisition deals, etc. With such a humongous number of trips, it becomes essential to keep track of each trip and manage costs. Efficiently managing the business trip approval process is fundamental to effective corporate travel management. Business trip approval provides the necessary gatekeeping that helps in determining the necessity of a trip. The process helps in rifting a barrier if the trip is not as per the travel policy and flagging the itinerary for reconsideration.
What is business trip approval?
Business trip approval is a set of formal steps that are required to authorize an employee to carry out business travel. It involves outlining the purpose of the trip, duration of the trip, estimated booking and trip expenses, KPIs to decide the outcome, and any other information necessary for the trip approval. The process can vary as per the requirement of the organization and the same should be communicated to multiple stakeholders. The purpose of the process is to safeguard over budgeting and reduction This process can vary from one organization to another, often involving multiple stakeholders and distinct steps. Its purpose is to act as the final approval, ensuring that travel is well-planned and justifiable.
Suggested Read: Corporate Travel Guide To Manage Trips Like A Pro!
Why is business trip approval important?
The importance of business trips can’t be stressed more. However, it is also crucial to maintain a robust business trip approval process to filter any out-of-policy or approved requests. It empowers organizations to prioritize trips based on necessity, strategic importance, or client demands. It facilitates effective tracking along with budget management while business trips are frequent within an organization. Therefore, business trip approval is essential for cost control, risk mitigation, and aligning travel with the company’s strategic objectives.
1. Defining the Process
While planning for the business trip approval is the first step, defining the process entails clear guidelines and protocols. It is necessary to define transparent procedures to remove any kind of discrepancies and ambiguities. The process should clearly state the flow of the process. The flow should outline the steps for request submission and how permission will be granted to the employees from the travel managers and higher authorities. A well-structured approval process reduces ambiguity, accelerates decision-making, and ensures that travel aligns with the company’s objectives.
2. Checking with the Travel Policy
An essential facet of the approval process is ensuring that the proposed trip is in line with the organization’s travel policy. Travel policy is necessary to set the perimeter of the trip along with maintaining several parameters such as budget, safety, and strategic direction of the company. Travel managers and authorities should ensure that the trip is in total compliance with the travel policy as per the different bands of the employees. A thorough review of the travel policy provides a framework for making informed decisions about travel approvals.
3. Communicate the Process
It is essential that effective communication is maintained and the process is being communicated to the stakeholders with total transparency. Travel admins should be able to solve any and every query of the employee and the authorities granting the trip. Crucial instructions should be provided to the employees with comprehensive training that will further smoothen the overall process. When employees understand the process and its requirements, it increases efficiency and reduces potential errors, resulting in a more streamlined approval process.
4. Providing Business Trip Approval Email Sample
Furnishing the employees with a correct template for requesting approval is vital for the execution and reporting of the trip. The template will set the outline for the necessary information such as the purpose of the trip, dates of the travel, estimated expenses, and ways to expedite the trip. It simplifies the process for both employees and approvers, enhancing the overall efficiency of business trip approvals. These emails will help track the compliance of the trip and determining the ROI post-trip. Additionally, by analyzing such reports and documents, team managers can determine the effectiveness of the travel and ways to improve the outcome.
5. Automating Business Travel Approval
Automating the trip for approvals and objective analysis can reduce the error percentage. It will give a significant boost to the team by removing several manual processes. Implementing specialized software empowers organizations to monitor requests, direct them to the appropriate stakeholders, and provide real-time updates. Automation accelerates decision-making capabilities and frees the employees to focus on the trip more than the expenses and documentation. Furthermore, it establishes a digital audit trail that enhances accountability and oversight, providing transparency and traceability throughout the approval workflow.
Suggested Read: Automation In Travel Management For Human Resources Team
How to create the ideal travel request approval workflow?
- Identify the needs of your orgnaziation and accordingly build the travel policy
- While creating travel policy clearly define the rules and regulation along with the exceptions
- Create a standard travel request form
- Use an online travel request system to automate and track requests
- Automate the cost review system of the request
- Include a sound approval flow from supervisor to higher level management
- Train your employees to use the system effectively
Simplify the travel request approval workflow with Paxes
Paxes is an online travel management platform for corporates all around the world. Beside booking and managing expense, Paxes provides advanced tools for streamlining travel approval process. Paxes is capable of handling multiple travel request with numerous approval hierarchy. The request can only be generated if the booking is made as per the travel policy. Managers can easily approve or decline the request with just one click. They can also add a valid reason to decline any request.
Conclusion
Managing business trip approval is important for cost control, compliance, and alignment with company objectives. By clearly defining the process, ensuring adherence to the travel policy, effectively communicating the requirements to employees, providing approval request templates, and automating the workflow, organizations can optimize their business travel approval process. This optimization results in superior resource management, enhanced cost control, and more efficient business travel operations, ultimately contributing to the organization’s overall performance.
Business Trip Approval FAQs
What is a business trip approval process?
The business trip approval process is a set of formal steps required to authorize an employee to undertake a business trip.
Why is business trip approval important?
Business trip approval is important to prioritize trips based on necessity, strategic importance, and client demands.
How should the business trip approval process be communicated to stakeholders?
Travel administrators should be able to address employee and authority queries with transparency. They should communicate the process through emails and putting the approval process in company’
Are there specific criteria for business trip approval?
Yes, the travel admins can define the criteria as per the requirement of the organization such as budget, country restrictions, etc. and include them in the travel policy.
How far in advance should I submit a business trip request?
Employees are suggested to submit the request well in advance generally a few weeks or months before the travel date.
Who approves business trip requests?
Business trips requests should go through a multiple approval points such as managers, travel admins, and CEO (if required). Additionally, finance and accounts department can also be cued in for better expense management.
Can I make changes to my approved business trip itinerary?
Yes, changes to an approved itinerary are possible but usually require notification and re-approval.
How will I be notified if my business trip request is approved or denied?
Most of the approval softwares send email and in-platform notifications. You can also be notified on official phone number via text message.
What expenses are covered during a business trip?
Expenses covered during a business trip vary but commonly include transportation (flights, rental cars), accommodation (hotel stays), meals (some or all), and miscellaneous business-related expenses.
