Workation: combining business and leisure

Workation is a growing trend. If you frequently go on business trips, you have probably already experienced it. What is it all about?

Discover what this type of travel entails and why it is becoming increasingly popular. 

What is workation?

The term "workation" is a combination of the words "work" and "vacation", meaning that work and leisure are combined. Professionals who travel a lot can enjoy additional vacation days at their business trip destination, thus improving their work-life balance.

Workation allows for the extension of a business trip to include leisure activities, such as exploring the destination, relaxing, or spending time with friends or family. This trend offers business travelers the opportunity to make their business trips enriching and relaxing experiences while discovering a new country or culture.

Do you know the advantages of workation?

• Reduced vacation costs: Most companies cover travel expenses, leaving the employee to pay only for the additional hotel costs.
• Increased job satisfaction: Some companies allow employees, with prior approval, to bring their families on business trips, giving them the opportunity to enjoy their free time and subsequent vacations together. This helps reduce stress and improve work-life balance.
• Time savings: Fewer additional days dedicated to arrival and departure mean that the traveler saves not only vacation days but also valuable time.
• Reduced carbon footprint: Fewer arrivals and departures also have a positive effect on the carbon footprint, limiting greenhouse gas emissions that are harmful to the environment.

How to prepare your workation?

Good planning is essential for a successful workation.

• The first step is to obtain your employer's agreement. 
• Next, it's important to choose a destination that's compatible with professional requirements: good Internet connection, manageable time zone, accommodation suited to telecommuting, etc.
•  It's also important to define clear arrangements with your team, particularly in terms of availability, tasks to be delegated and communication channels.
• Finally, to maintain a good level of performance, it's essential to set clear boundaries between work and leisure.

But what about the disadvantages of workation?

Despite the attractive image it may give, and seeing the advantages above, workation has several limitations.

The main problem lies in the difficulty of distinguishing between work and leisure. Working from a vacation location blurs the usual reference points and risks reducing the benefits of free time, with a possible impact on long-term mental health.

The absence of face-to-face interaction with colleagues - whether over a cup of coffee or in a corridor - can also make you feel lonely, leading to a drop in motivation. Finally, time differences in faraway countries, poor Internet connections and poor organization can complicate collaboration and generate frustration within the team.

What do employers need to watch out for?

Workation is not yet well regulated by law, which means that companies have to act on a case-by-case basis. Before authorizing an employee to work from abroad, employers need to assess a number of factors: the duration of the stay, the country concerned, the type of position, and any tax, social security and legal implications. It is advisable to draw up individual agreements, and not to rely on home office rules, which do not apply directly to this very special type of work. A general clause in personnel regulations may also be considered if workation becomes a recurring practice.
 

Companies must also take into account their obligations in terms of employment law and residence conditions. If the employee remains subject to Swiss law, the employment contract and the Code of Obligations apply. On the other hand, any administrative requirements in the country to which the employee is going, such as obtaining a visa, are in principle the employee's own responsibility.

Workation is gaining popularity

Several factors explain the rise of workation:

• Work-life balance: In response to the growing desire to maintain a good balance between professional and personal life, workation allows employees to maximize their time away from home.
• Flexibility and mobility: The increase in remote work and flexible working hours has made it easier to combine business and leisure travel.
• Personal enrichment: Discovering new cultures and destinations can have a positive effect on personal and professional well-being, stimulating creativity and inspiration.
• Company policies benefiting workers: More and more companies recognize the advantages of workation and are adopting policies to encourage this practice.

Workation: some key figures

The site Travelperk, specializing in business travel, has attempted to quantify the evolution of the workation phenomenon. It highlights the following key figures and trends:

• Market growth: Due to its growing popularity, the global workation market is expected to increase by several hundred percent by 2033, reaching a rapidly expanding market value.
• Duration of trips: Business travelers spend an average of 22 days per year on business trips, with an average trip length of 3.8 days. Thanks to workation, they can combine work and pleasure, spending more time in the cities or countries they visit for business and wish to explore further. In 2023, 66% of business travelers extended a business trip for leisure reasons, and 14% did so on three or more trips.
• A generational matter: About one-third of Gen Z and Millennial business travelers plan to add leisure time to their business trips in the coming years.
• Popular destinations: It is not surprising to find that major business cities such as New York, Paris, and London are the most popular destinations for this type of trip.

What insurance coverage is there for workation?

Employees who remain affiliated to the Swiss social security system retain their usual coverage, notably through accident insurance and supplementary insurance. However, some insurance companies may apply coverage restrictions depending on the country or length of stay. It is therefore advisable to check with your AVS fund and insurer before departure.

Alongside the phenomenon known as "workation" (working before, during, or after official vacations taken with family at a vacation spot), workation is a new trend that the travel industry and assistance companies must increasingly consider to meet their clients' expectations.

Discover all our travel insurance options here.

Image credits for the article: @Getty Images/Alexander Spatari