What is Workation?

A workation is a period in which employees work remotely from a vacation destination.

In this article, we’ll define what a workation really is, see how it works in practice, and examine why it’s gaining traction. You’ll also find the key pros and cons, what HR teams need to consider when approving workation requests, and how it compares to other flexible work setups.

Vacation While Working: What is a Workation?

A workation combines “work” and “vacation” and it’s an occasion where someone continues their job responsibilities while staying in a location typically intended for leisure time.

In technical terms, a workation is a form of remote work arrangement in which an employee performs their regular job duties without visiting the office. But the difference with regular remote work is that the employee is temporarily working from a place which is primarily intended for leisure or travel, without taking formal leave. So, in a workation, a remote worker does not work from home.

The idea gained popularity during the pandemic, when companies learned how to work from home and workers realized they didn't have to be in one place. What started as a workaround has become a workplace perk and, in some cases, a lifestyle.

For HR leaders, it signals a broader shift in how, where, and why people choose to work.

How Workations Work

Workations are flexible by nature, but they generally fall into a few recognizable formats. These are the main types of workations:

• Solo workations: An individual employee chooses to temporarily relocate and work from a leisure destination.
• Team retreats: Entire teams or departments travel together to work in a different setting with work, but also with fun activities.
• Digital nomad setups: Digital nomads are typically independent contractors, but they can go on a workation just like an employee does. And while not all digital nomads are on workation, many adopt a workation-style routine.

Duration

The length of a workation can range based on company policy and personal preference. These are three main categories related to duration:

• Short-term workation: A long weekend or a full week, often used as a mini-reset without taking PTO.
• Mid-term workation (or medium-term workation): A few weeks to a month.
• Seasonal or extended (long-term workation): Multi-month stays, sometimes tied to “work from anywhere” programs or remote worker visas in foreign countries.

Destinations and Setups

Workation destinations vary, but they typically combine leisure appeal with functional infrastructure for work. Some setups are:

• Short-term rentals like Airbnbs that offer privacy and reliable internet connection.
• Resorts and hotels that are friendly to remote workers with dedicated workspaces, Wi-Fi, and quiet areas.
• Remote work hubs in cities like Lisbon or Mexico City that attract global talent due to favorable time zones, cost of living, and digital nomad visas.

HR software for freelancers →

Why Workations Are Trending

Workations exist because they're easy to for workers to take, they're cheap or free for companies, and they're a great way to reinforce the message that companies care about an employee's work-life balance.

Of course, this new trend exists because hybrid work models took over the workplace. In the post-pandemic job market, it has become easier for employees to work from any new location with a stable internet connection than ever before. And even if the tech was there before, it maybe grew evident during lockdowns that employees shouldn't be staring at a concrete wall all day long to be productive.

Workations are also popular because they're an anti-burnout strategy that doesn't splurge on PTO days but still work in the interests of a better work-life balance. Employees have realized that they can take care of their well-being without spending precious time-off days that they might use for a different occasion.

The work-life balance also changed with the pandemic, and the workation takes advantage of that tilt. With more flexible schedules and asynchronous collaboration becoming the norm, the traditional divide between “work” and “life” is becoming more fluid. Workations reflect this change, and it's yet another way in which employees can reconcile their work commitments with their personal lives.

Pros and Cons of Workations

Like any flexible work model, workations come with both upsides and potential challenges. HR teams should weigh the many benefits against the risks when they define a company's workation policies.

Pros

• It's free: Companies don't directly spend money if they list a workation as a perk. So, in many cases, it's just a great way to capitalize on something that already exists (working remotely.)
• Contributes to talent attraction and employee retention: Offering workation flexibility can make an organization more appealing to top talent, especially younger professionals who value work-life integration. Actually, 19% of Gen Zs and 19% of millennials consider flexible working hours among their top reasons when considering a job offer. A workation with which an employee can get to know new cultures while earning a top-dollar salary is, of course, a very strong retention strategy.

Cons

• Time zone challenges: Business may find it difficult to be on the same page as their employees. Some teams which are used to working in synch might have a hard time if the employee leaves for Bali.
• Blurred work-life boundaries: The line between work and free time can become even more blurred when both happen in a vacation setting. Without clear boundaries, employees might get disorganized. It's too tempting to sip down a drink by the beach during working hours.
• Perception issues: Colleagues or leadership might question whether someone is fully engaged if they notice they're working with sunglasses and a large palm tree in their meeting background. But this is more of a culture issue than a real issue.

Businesses can implement HR AI tools, like an AI policy generator, so they can get the clear message about what a workation implies and what the company policy is.

What is a Workation Policy? How HR Can Support Workation Requests

An employee's workation starts when they set up their laptop at a café on an idyllic island... only it really starts before that, which is when a company writes up clear internal policies. Organizations should define the permissible duration of a workation—whether it’s a week, a month, or as much as the employee wants—and clarify who is eligible, including whether certain roles or performance levels qualify. In case there's a liability, companies can also outline any geographic restrictions, especially when international travel is involved.

Legal and Compliance Considerations

When they offer a workation, companies must keep compliance risks in mind and pay careful consideration to local laws. Depending on the destination, employees may require work permits, tax documentation, social security or travel insurance.

Performance Expectations and Availability

Employees should understand that a workation isn’t time off, and it’s still a period of full engagement, and that they should stay connected. Companies should set expectations for response times, which meetings are still mandatory, and deliverables. This helps keep everyone on the same page with team goals.

Technology and Cybersecurity Support

With careful planning, HR and IT should work together to verify that employees who are abroad still have access to the tools they need. For example, some companies don't allow their staff to send emails if they're outside the corporate network. So HR and IT should make sure that the employee can indeed use their inbox even in a distant country.

What is a Chief Remote Officer (CRO)? →

Workation vs Remote Work vs Work-From-Anywhere

While all three concepts—workation, remote work, and work-from-anywhere—involve working outside of a traditional office setting, they differ in terms of intent, duration, and structure.

Intent

• Workation: The primary intent of a workation is to blend work with leisure activities. Employees work remotely while staying in a vacation destination.
• Remote work: The goal of remote work is simply to perform job duties outside the office. Employees work from home or another location, but the focus remains entirely on work.
• Work-from-anywhere: This is just a policy name which implies that a remote worker doesn't have to ever attend the office, even sporadically. A workation can be part of a work-from-anywhere policy. But even companies without a work-from-anywhere approach can offer a workation.

Duration

• Workation: The duration of a workation is typically shorter, ranging from a weekend break to a few weeks.
• Remote work: Remote work can be both short-term or long-term, depending on company policy. Employees could work remotely for a few days, weeks, or even on a permanent basis if the role is fully remote.
• Work-from-anywhere: The duration here is generally open-ended.

Structure

• Workation: A workation usually has a more relaxed structure that allows employees to blend work with personal activities. They may set their own work hours, even though expectations for productivity remain the same. The focus is on creating a balance between work and vacation time.
• Remote work: Remote work is generally structured, with established work hours, regular communication, and clear expectations. Employees are expected to be available during set times, though the location may vary.
• Work-from-anywhere: The structure of this model is typically less rigid. While performance standards remain, employees may have more autonomy over when they work, which leads to a less structured work schedule.

Workation FAQs

Q: Do employees need approval for a workation?

A: Yes, in most companies, employees require approval from HR or their manager before taking a workation because some companies have some legal restrictions as to where their employees work from. But in remote-first or remote-only companies, employees don't really need to ask for permission to start a workation.

Q: Should businesses offer workation as a perk?

A: Yes, businesses should consider offering a workation as a perk, since it can lead to higher employee satisfaction and retention. But if a business chooses to offer it, they should make sure that employees don't expect the company to actually pay for it! They should be obvious about just what they offer: The possibility of working from wherever you want, and explicitly even if you're working from a hut by the beach.

Q: Can workations improve employee engagement?

A: Yes, a successful workation (like a workation which gets the verbal support from the employer) can help employees have an increased job satisfaction. In turn, this can lead to higher engagement and increased productivity, although the best way to tell if it actually works is with analytics software with which business owners can benchmark with before-and-after metrics.