‘Workcation’ plans rising: What it means for your company

Due to the rise in remote work, a new trend for employees is the “workcation.” And it may need to be addressed in your company’s T&E policy.

It typically hasn’t been all that uncommon for employees to add a few extra vacation days onto a business trip to decompress and explore a new city.

But with the added work flexibility created by the pandemic, people are considering more long-term getaways without unplugging from the office.

What to watch for with a workcation

Workcations allow employees to combine business with pleasure. Then, they don’t have to take separate trips and risk repeated exposure to COVID.

Since many people can theoretically work from anywhere, employees are opting to travel to destinations across the world. And they’re remaining on the clock.

They’re taking their laptops and devices with them. That way, they can sign to Zoom meetings from Miami or access spreadsheets in France.

This option especially appeals to younger employees. In fact, per data from Kayak, 40% of Gen Z employees plan to take a workcation this year.

Workcations can have immediate implications for your Payroll team since employees may be establishing nexus by working outside of the state or country.

Your A/P team is affected as well. It’s tricky enough to draw lines when employees use their personal time during a normal business trip.

Since the employee is traveling with no intention of taking time off during a workcation, how much of their expenses are reimbursable after the trip? Is the company liable for covering business lunch expenses?

It’s smart to ensure your current T&E policy has provisions for allowed expenses during workcations.

And if there are any reimbursable expenses, have A/P remind employees about what can be included on expense reports.