Dear Ramesh,

Let’s tackle this step by step.

First, the bad news: telling your employee he won’t be reimbursed is not the right approach in this situation. Why? Because you didn’t set a spending limit beforehand. Without clear guidelines, it’s unreasonable to expect your employee to know your expectations—so this one’s on you. The fair course of action is to reimburse him this time and use this as a teachable moment to set expectations moving forward.

The good news? This situation offers a valuable opportunity to create clarity and establish a stronger working relationship with your employee. Let’s unpack how to do this effectively.

1. Acknowledge Your Role

Recognize that the lack of clear expectations was the root cause of the issue. As a leader, it’s your responsibility to set guidelines upfront. Without them, you inadvertently set your employee up to fail—and that’s not fair. Moving forward, establish a clear travel policy and communicate it to your team to prevent misunderstandings like this.

2. Approach the Conversation with Positive Intent

This conversation is not about blame; it’s about collaboration and alignment. Start by sharing your intent to set your employee up for success:

“I’d like to talk about the recent hotel expense. My goal is to make sure we’re aligned on travel expectations so things go smoothly moving forward.”

3. Address the Issue Clearly and Calmly

Describe the situation and the gap between your expectations and the outcome:

“I noticed the hotel room cost $700, which is more than I expected. I realize we didn’t discuss a budget beforehand, so I can see how this happened. That’s on me for not setting clear guidelines.”

This approach takes accountability for your part while gently highlighting the expense as unusual.

4. Set Clear Expectations for the Future

Lay the groundwork for better alignment moving forward by clearly outlining what’s expected:

“I’ll send you our employee travel policy today, which outlines typical spending guidelines, so we’re both on the same page. If there’s ever a question or need to exceed the budget, just let me know ahead of time so we can discuss it.”

5. Reframe Accountability as Collaboration

Accountability is a two-way street. Position this as an opportunity to work together to close the gap between expectations and outcomes. Acknowledge how your action—or inaction—contributed to the misunderstanding:

“Our goal here isn’t just about fixing this one issue. I want us to have a good system in place so you feel confident about decisions and I know what to expect. Let’s use this as a chance to refine how we work together.”

Final Thoughts

By handling this situation with fairness and collaboration, you not only resolve the immediate issue but also build trust and clarity for the future. Use this as an opportunity to strengthen your working relationship, demonstrate accountability as a leader, and create a clear framework for travel and other expectations moving forward.

Best regards,

Yogesh