Seeking Advice on Domestic Travel Policies: Per Diem, Expenses, and Grade System Insights

Hello Friends,

I need a favor from experts :) I am drafting a policy for domestic travel and relocating employees on short term/long term. I would appreciate it if you could share with me the industry standards, or if any of you have these policies so that I can benchmark our standards. Basically, I want to know the per diem/daily allowance. Are other expenses like telephone/local travel reimbursed over and above the daily per diem?

Is it important to incorporate a grade system for the mode of transport, meaning should senior managers travel by air and junior engineers by rail, etc.? Please help.

Thanks a bunch in advance.

When drafting a policy for domestic travel and employee relocation, it is crucial to consider various factors such as per diem allowances, reimbursement of additional expenses, and the implementation of a grade system for different levels of employees. Here are some practical steps to guide you through this process:

1. Per Diem Allowance:
- Research industry standards and local regulations to determine a competitive per diem rate.
- Consider factors like cost of living in different locations and the duration of travel when setting per diem allowances.
- Clearly outline the per diem rates for different employee levels and locations in your policy.

2. Reimbursement of Additional Expenses:
- Define which expenses are covered by the per diem allowance and which expenses can be reimbursed separately.
- Expenses like telephone charges, local travel, and other incidental costs should be clearly specified in the policy.
- Establish a process for employees to submit reimbursement claims with proper documentation.

3. Grade System for Mode of Transport:
- Evaluate the necessity of implementing a grade system based on employee levels for choosing the mode of transport.
- Consider factors like travel distance, employee preferences, and cost-effectiveness when assigning transportation modes.
- Ensure that the grade system is fair, transparent, and aligned with the company's travel policy objectives.

4. Policy Review and Benchmarking:
- Regularly review and update the travel policy to align with industry standards and legal requirements.
- Benchmark your policy against competitors and industry leaders to ensure competitiveness and compliance.
- Seek feedback from employees and stakeholders to continuously improve the policy.

By incorporating these considerations and best practices into your policy for domestic travel and employee relocation, you can ensure clarity, fairness, and efficiency in managing travel-related processes within your organization.