Individual vs Business spending gap...

[Siress]

What do you lot make of large gaps between an employee's personal spending on things like airline tickets, meals, etc. compared to those same expense types on the company dime?

It's something that strikes me as ripe for comparison, but after thought it seems there's really nothing there at all worth comparing - except maybe how different employers value their employees.

Anecdotally, I've seen people who make ~$400k/yr expense ~$1000/meal, when their personal spend is likely ~$60/meal. People making $150k/yr expense ~$45/meal when their personal spend is likely ~$20/meal. People making $60k/yr expense ~$20/meal when their personal spend is a little less. I get that it makes sense to spend a bit more to offset the travel blues, but it's like there's a disconnect that happens as people make more and more money where they just get downright silly with the extravagant expenses...and that's just accepted. Airline tickets are even worse. The richest people I know spend as little as possible, though, company dime or not - just to avoid that lifestyle creep.

[flyweightnate]

Former boss would valet park at the airport for $75/ day... and that seems pretty reasonable by comparison.

I'm definitely in the category of spending twice what I would by myself, because I'm on business. Airport dinners are the worst offenders - but I don't want to be eating fast food five (or ten) days a month.

I wonder if it's an unwritten rule for the execs, though, considering it's essentially tax-free income. The company "gives" them the meal as a perk, splitting the difference between an extra $1k compensation, and the associated $1200 in payroll and income taxes that would ride on it... a fringe benefit that doesn't hit the books, but increases employee retention. Just a thought.

Edit: as an addendum, old money seems far more content than new money to just be "normal". I've been around some new money that either very much enjoyed the fruits of their labor, or was very worried their neighbors didn't know how fruitful it was. Sometimes it's hard to tell the difference.

[Grendel]

My company has the same spending limits during travel for all employees. So I get the same daily cap for meals as my boss and his boss and so forth. Same car rental policy,...etc. For flights we travel coach for domestic and business class for international on the companies dime, but we keep our frequent flyer miles. I tend to use mine to upgrade my coach seat. All of our expenses have to be submitted and approved by your immediate boss and clear through the policy filters. If your expenses are in excess of policy and not overridden by your boss and then his boss you are reimbursed for the max allowed by policy. We do have sliding scales based on the local (area cost of living adjustments)

The only real difference is when you move into a managerial roll you have group entertaining that is allowed but you have to track every individual that attends and there are "standard" per capita, limits/guidelines.

My company has a very generous polices for travel and applies those to all who travel no matter what your position within the company.

[BrickHaus]

Ill try to speak from my own personal expierence with this.

Im one whom pulled my individual spending up to more align with my on the road spending.

When I first started in field service. I was pinching every penny I could both for myself and while on the company dime. I realized a few years in. Theres no incentive to pinching pennies for the comapny ( I assumes Id evrntually get paid more knowing Im a guy who saves money for the company. ) Couple that with long hours from traveling for work, being underpaid on salary, and being so stressed out I could drink 2 beers with every dinner. I eventually made it a goal to spend almost every penny of my 60 bucks a day.

To the degree Id occasionally have the wait staff take one of my beers off my check to get my spent budget at 60 with a tip. Then pay for the other beer myself.


Now that being said, Ive also learned q 110 dollar hotel is worth the cost over an 80 dollar hotel. ive also just gotten way better at tipping wait staff from shuttle bus drivers, hotel maids, and wait staff. Before my salaried job I didnt realize many of those professions needed tips. Tipping with compa y money instilled the habit, now I tip 20‐ 50%+ on meals,, and others on my own dime without even blinking.

I also realize time saved is worth money spent, so I really did the opposite of the OP. I have since quit that job. My new job requires me to spend money on my own credit cards and expense them, which almost makes it feel like you are spending your own cash.


i do find it funny that you have noticed this trend though. I used to work with many highly paid people who took every advantage they could of the system. Rental upgrades, first class upgrades, 60 on meals every day. Side expenses for personal tools, ect. Its kinda nuts.

But also, I can see if you feel underpaid, taking advantage of company spending is likely figured into your wage, so it feels like you are giving yourself a raise.

[BrickHaus]

Id like to add, companies could get away from the excessive spending using per diem rates. Now I get 55 bucks for food a day, and if I dont spend it. The remainder goes to my bank account. That would curb a lot of the excessive spending as mentally, its YOUR money.

[Grendel]

I love per diem from the traveler's perspective and even from an immediate management perspective. I have asked my current employer why it is not used and they said flat out they did studies on the pros and cons and it was cheaper and easier to implement with generally more generous policies and just police those policies. All of our expenses are done on corporate cards that are direct paid by the company. The traveler just takes photos of the receipts and connects them to the appropriate expense category. Stay within policy or apply for and exception and 0 impact to the traveler.

[Siress]

Interesting perspectives. Thanks all.

I do like the idea of a per diem, though it would need to scale with the local cost of living. That gets challenging to implement. Every travel policy I've been under has explicitly allowed exceptions approved by your manager - which is always the norm... This allows companies to selectively enforce the policy without repercussion. If they selectively enforce it without such a clause, then it would be illegal to enforce it. This 'managerial approval' is also how they handle complexities, such as high CoL areas or tolerated excess spending. These are for positions that only travel 1-6 times a year, so it's not as bad as a field position like you mentioned BrickHaus .

[BrickHaus]

My current employer uses GSA.gov for the calculations. We punch the zip code in pre trip, and we know our per diem amount to charge. Then we manually put it on the expense report so its pretty easy for management to deal with it.

But for management positions. I totally get your post. It kills me to watch that kind of spending at the executive level. Ive seen that at a few employers now, but if you speak out about it. You are just disgruntled.

[Siress]

TIL about GSA.gov... that's awesome... thanks for sharing that.

[BrickHaus]

I can say I never thought there would be one to provide you with any valuable information, so I'm happy to help!

[Cunha]

It depends on the company.

Usually there is a double standard, where execs will spend the 1000 dollar meals, and then tighten the bolts on their regular employees getting 15 dollar mcdonalds meals. "Did you really need a milk shake?"

[Grendel]

Yup there are always people if you give them an angle they will use it to benefit themselves or support their public image...etc. That being said two companies I have worked for (including my current one) when I was in a senior managerial roll got on to me for not spending enough on my regular trips. They wanted me and expected me to entertain internal and external companies as a "cheap" way of promoting the company and branding. I struggled with this mainly because I am an INTJ (introverted, intuitive, thinking, and judging) personality trait and dealing with people all day then having to entertain at night was exhausting. I'm not saying you are wrong and know of many situation where employees were gaming the system to their benefit but there is a potential other side of the story and in my cases I spent more then my subordinates regularly to keep the payroll and business unit admins off my back. Normally I would drag along my people so they shared in entertaining but that was me.