Travel Incentives

The profile of today's workforce has changed dramatically from the picture about two decades ago. Employees do not compare monetary rewards alone as part of the pay package. As more and more young workers enter the job market armed with better education, they seek to strike a balance between work and other spheres of life. Travel incentives are attractive perquisites that bring novelty of experience to employees and do not cost a huge sum to the employer.

An employee accepts an appointment after weighing relative annual net-of-tax pay. Besides the monthly or annual monetary cost to the company, an employee would like to consider other non-monetary aspects like subsidized housing, medical or dental insurance, child care and leisure facilities. Travel is an exciting way to spend leisure time. In today's hectic working style, employees appreciate every opportunity to spend quality time with their families.

Cashing in on the expectation of employees, most employers offer some form of travel incentives. A fixed allowance towards the cost of tickets, food and accommodation is the most common form. The allowance depends on the level in the hierarchy of the organization.

In another form of travel incentives employees get coupons from travel management companies for specific holiday packages. Most tour operators offer holiday packages that include plenty of fun activities besides sightseeing. The holiday itinerary also includes plenty of sporting activities like football, baseball, golf and skiing.

Hotel rooms are usually comfortable with courteous concierge and room service and a huge choice of cuisine. Some packages include complimentary gifts. Spouse and children are allowed at no extra cost. Dates are offered with a validity of up to one year. Getting around a new place taking in the sights and sounds can be a romantic and fun-filled way to spend the holiday.

Some employers maintain special suites or resorts at attractive holiday destinations. Employees would then get an opportunity to stay in the resorts at pre-determined dates in a year. There could be room service or the suites could be independent like service apartments. So, the employee has the choice to decide whether he wants to stay in a hotel-like setting or get a little feel of home by doing his own cooking. Value added services like concierge, guide, sporting activities and gifts make the experience memorable.

What are the advantages of travel incentives to the employers?
ØThe timing of the outflow on account of travel incentives is at the discretion of the employer. If the sum is paid to the employee as a reimbursement of cost, it is an annual affair that can be fairly estimated. In the case of arrangements with travel operators, the employer could negotiate for appropriate credit period.
ØThe employees get a memorable holiday experience. This motivates them to perform better once back at work. Satisfied employees mean better bottomlines.