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03.03.2009 10:40 am

Group posts guidelines for legitimate business travel

St. Louis Post-Dispatch
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As I wrote in Sunday’s column, the country’s mood has turned Puritanical when it comes to travel by bailed-out bankers. The U.S. Travel Association has responded with a series of news releases, reminding Congress that jobs are at stake and decrying the current “witch-hunt mentality.” The association also has issued its suggestions for deciding when a meeting, event or incentive program is a junket and when it’s a legitimate travel expense. Here are some excerpts from the association’s suggested policy:

  • The amount spent for an employee performance incentive/recognition event shall not exceed two (2) percent of the total compensation of eligible participants or 10 percent of total award earners’
    compensation.
  • At least 90 percent of incentive program attendees shall be other than senior executives (as defined
    by applicable Treasury Department guidelines) from the host organization.
  • All internal meetings or events attended only by senior executives (as defined by applicable Treasury Department guidelines) and/or board members shall be devoted to specific business purposes, and participating senior executives shall be responsible for any expenses incurred for non-business related activities.

“Legitimate business purposes,” the guidelines say, include product-launch events, employee meetings “to align vision, strategy and tactics,” employee-recognition events, trade shows and company-sponsored charity events. The association’s guidelines seem pretty common-sense, but they’re also broad. It seems like almost any trip, except for Dennis Kozlowski’s birthday party,  could fit into one of the permitted categories.

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One comment

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How complicated (and yet so full of loopholes as you note)!

Do hard working, dedicated and productive employees deserve to be recognized for their efforts? Of course, but firms must be more judicious in their use of recognition. Massive junkets offered in the name of recognition, regardless of tradition, are not wise in the current environment and, I would argue, are not wise at any time. For truly effective recognition, employees should be recognized when they do something worthy of recognition, not months later. This is critically important to driving home fundamentals such as company values or strategic objectives that you need to reinforce through recognition of behaviors that reflect those values and objectives. This must be done in the moment for full impact.

And employees should be given a choice of how they want to be rewarded for that recognition. Public acknowledgment is anathema to some, desired by others. Some may prefer to choose a vacation with family over a glorified business trip with colleagues. Others may not choose travel at all. My point is, to be meaningful, recognition should be personal.

More on this topic here: http://globoforce.blogspot.com/2009/02/whats-all-recognition-fuss-about.html

— Derek Irvine, Globoforce
4:05 pm March 5th, 2009