Everything That Employers Need to Know About Workations

In recent years, to attract new and retain old employees, companies have added the term workation to their offered benefits. Although the idea sounds ideal to employees, employers should consider not only the entertainment factor but also potential risks when offering and planning this benefit.

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What Is Workation?

Simply speaking, the term itself is made up of two words – work and vacation. A workation is a process when a certain department of the company or all employees of the company go on a trip that is a combination of work and entertainment. Teams usually spend the first half of the day working, and the second half of the day they have fun or spend their time in other meaningful ways. This is usually organized in the form of team building, but the work of individual employees in another city or country can also be assigned to this category.

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Why Is This Phenomenon Gaining Popularity?

Workations are becoming popular for many reasons, but we would like to highlight a few main ones.

Firstly, work-life balance has become more important than ever. Because it is so important to employees, employers are looking for ways to provide it. Employees who work in a more relaxed and inspiring environment burn out less quickly and feel much better both physically and psychologically.

It is also important to mention that workations are a great opportunity to strengthen team bonding. This process is often organized as a team-building tool since the informal environment encourages the creation of interpersonal communication.

A new and unusual work environment can stimulate the creativity of employees and open the door to solving various problems.

This additional benefit sounds attractive to potential employees and makes the employer more competitively attractive and has a high chance of attracting freelancers attracted by flexible working conditions.

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What Are the Potential Risks of Workations?

Although most employers believe that such a change in the work environment increases productivity, the reality may be somewhat different.

On average, the productivity of an employee who is on workation drops to 70 percent. If productivity falls, it means less work can be done, which is not what every employer wants. Even after the workation, the employee often must catch up and work more and more intensively to catch up and be able to achieve the company’s or personal goals.

Also, employers should not forget about taxes –when working for a long time in another country, taxes must be paid in the country where the employee works.

Work safety must also be kept in mind: the employer must spend additional time describing the work procedures, which must clearly define the working conditions and the workplace. That is what requires a considerable time investment.

On simpler matters, working outside of Europe can create a time difference that can interfere with communication and work.

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What Measures Can Employers Take to Reduce Potential Risks?

Employers, first and foremost, need to understand that while workations are a new reality, they are only a side benefit or incentive, not a regular practice. Therefore, employees should be encouraged to contribute, as this is a high risk for the employer.

We would also recommend limiting the duration of workations: no longer than 90 days in the European Union, and no longer than one month in other countries.