Business travel: A key driver of employee retention
RETAINING top talent is critical for any business, but for SMEs the impact of losing a key employee is especially severe. It can disrupt operations, affect customer relationships and damage morale, while replacement costs can reach up to twice an employee’s annual salary.
While smaller businesses may struggle to match corporate salaries, Corporate Traveller South Africa argues they can compete in other ways including flexibility, career growth, culture, recognition and, increasingly, the quality of business travel.
Research from employee benefits platform PerkSpot shows that 63% of employees are more likely to stay with an employer that offers business travel, rising to 76% among Gen Z. Companies that increased travel budgets in 2023 also saw lower employee turnover than those that cut spending.
“For SMEs facing the same travel complexities as large corporates but with fewer resources, this presents both a challenge and an opportunity,” says Herman Heunes, General Manager of Corporate Traveller. “Travel spend needs to work harder – not just as a cost, but as a retention tool.”
From wellness to wellbeing
Traveller wellness traditionally focused on physical and mental health; healthy meals, rest and fitness. Today, the focus has broadened to wellbeing, which includes emotional health, safety, work-life balance and overall experience.
Frequent travel, long hours and time away from home can quickly erode morale. As a result, companies are prioritising predictability, fairness and support to reduce travel stress.
What a better travel experience looks like
For SMEs, improving the travel experience does not require luxury spending. It’s about reducing friction and showing employees their time and wellbeing are valued.
Before travel, this includes clear policies, realistic schedules and adequate rest between trips.
During travel, it means practical upgrades such as premium economy seating on long-haul flights and accommodation close to meeting locations to reduce fatigue and save time.
After the trip, fast reimbursements and minimal out-of-pocket costs help reduce financial stress. Across the entire journey, strong duty of care, including 24/7 support and comprehensive travel insurance, is essential. Many employees still don’t know who to contact in an emergency, highlighting the need for better communication and support.
“Businesses are moving beyond the cheapest option,” says Heunes. “They’re balancing cost with comfort, safety and productivity, recognising that how people travel directly affects retention.”
Small changes, big impact
Importantly, high-impact improvements don’t require large budgets:
- Flexible policies: Options such as bleisure travel, flexible working hours or recovery days can significantly improve the experience at little cost.
- Smart comfort investments: Premium economy seating and conveniently located accommodation improve productivity and reduce stress.
- Streamlined admin: Faster reimbursements and simple expense systems reduce frustration and show respect for employees’ time.
- Strong support systems: Clear emergency contacts, comprehensive insurance and access to 24/7 travel assistance build trust.
- Purposeful travel: Trips should support development, with clear objectives and time for meaningful engagement rather than rushed schedules.
- Research shows employees increasingly view business travel as an opportunity for growth and connection, not just a logistical requirement.
The bottom line
As talent competition intensifies, business travel is becoming a strategic lever for retention. For SMEs, it’s an opportunity to demonstrate that employees are valued, supported and trusted.
A thoughtful, well-managed travel experience doesn’t just improve trips, it strengthens loyalty, boosts productivity and helps businesses hold onto their most important asset: their people.
