How to Compensate Employee Travel?

Tuesday July 29, 2008

See another question from a reader with my response below. Do you agree? Disagree? Have a thought to add? Please respond in "comments."

Question:

"We're trying to formulate a policy to address the question of whether and how we should compensate our exempt employees for traveling to conventions and exhibits that take place on weekends or require an overnight stay during the week. We pay for transportation, lodging and meals, of course, but right now we don't provide comp time or extra salary for this kind of travel.

"The issue is not whether we must provide compensation by law (we don't have to) but whether we should in recognition that it is a hardship for employees to work 12 days in a row, or to take time away from the office where sales are made. On the other hand, these are professionals who consider attendance at these conferences to be part of their job, and (so far) have been volunteering to go.

"I'm looking for industry standards. What do other companies do about this? Can you help? Thank you very much!"

Answer:

I am uncertain about what most companies do, but in my company, where groups of employees exhibit at 40-50 trade shows a year, we have an informal comp time policy that is part of our general workplace flexibility for employees. As an example, an employee who travels to the show on Sunday and returnes to our city Thursday morning might not show up for work until Friday. Or, perhaps, they take a three day weekend the next week with their manager's agreement.

I would never adopt a formal policy because I do not want to create or foster an environment in which employees develop a 40 hour mindset. I want a work environment in which people are productive, reach goals, and demonstrate empowered behavior

Help Exempt Employees Feel Valued

So, I think it's important to work in small ways to help employees feel compensated for their extra time and effort. We have our people stay at the best hotels, treat them to the best available restaurants, pay for their entertainment and bar drinks during debriefings, and so forth. They do trade show reports that are read by every person in the company, too, and present their experiences and customer insights at company meetings where they receive positive support from all staff. So, they are also compensated in ways that have nothing to do with pay.

Fundamentally, though, exempt status implies that the individuals will do whatever is ethically necessary to get the job done. I would make sure applicants understand the trade show travel requirements before they accept the relevant positions, too. And, all of the above may make the employees' contribution feel tremendously valued.

Here are others' thoughts: