Companies shelling out thousands of dollars to pay for their employees’ vacations

A few lazy days on the beach, with a drink in hand. Go hiking with friends, with spectacular views on top of a mountain. Explore a new city and try the most amazing food you’ve ever seen. And best of all? That you didn’t have to put in your own money to enjoy these experiences.

The benefits have changed after the pandemic era. One incentive that exists today stands out: giving employees generous budgets to see the world.

For the most part, these programs started in travel-related businesses. The co-workers of Airbnb Receive $2,000 in travel credits per year, and Expedia.com It reimburses its employees between $1,250 and $1,750 per year for travel expenses.

Now more companies in more sectors are following suit. The digital company Calendar offers an annual vacation allowance of $1,000 for hotels, flights or car rentals; the software company Bamboo HR offers what they call “paid vacation”with a stipend of $2,000 per year to spend on travel.

Michael König, professor of strategy and innovation at the Vienna University of Economics and Business, attributes this trend to the current state of the working world, which remains a “seller’s market” globally, even in an uncertain economy. .

Companies that go further by offering these unusual benefits can attract and retain the talent they are looking forwhich often counters the increasingly scarce employee loyalty.

“Employers can use this intelligently in their employer strategy,” says König.

“The message is that employers really care about the well-being of their employees, beyond superficial measures. It’s something that It certainly pays off in the long run.”

Recruit and retain

In a market where employees have the luxury of choice, employers offer attractive packages with benefits such as travel.

Being seen as someone who cares about the well-being of their employees is especially important for companies looking to recruit and retain new employees.says Cary Cooper, professor of organizational psychology and health at Manchester Alliance Business School in the United Kingdom.

“In Great Britain, for example, resulting in the loss of so many people to Eastern Europe Brexitemployers are having difficulty recruiting skilled or unskilled workers in certain sectors, and could consider some of these types of incentives, or use other strategies to attract workers.”

And while this is a global trend, travel benefits can be particularly attractive to American workers.where paid holidays are not a legal requirement, and where 46% of people who have paid holidays do not take them in full.

“Many organizations have very limited vacation time available in advance, so they can attract and retain staff by extending their paid vacation time. In the US context, this spending will almost certainly be focused on the ‘necessary’ professional workforce, as one of many other benefits,” says Cooper.

Furthermore, in the current economic climate, this travel budget initiative is more valuable than ever.

“The dramatic increase in the cost of living and rising inflation rates around the world are making travel a true luxury. Companies that offer holiday allowances are tackling this head-on,” says König.

It also makes financial sense for employees: “In many countries, these costs are also tax-free, and the net benefit for both employer and employee could even be greater than an increase.”

Not equally valuable for everyone

For some families, the idea of ​​travel reimbursement is not as attractive as it is for other types of workers.

These incentives can be seen as a win-win for both employee and employer, but for Paula Allen, global leader and senior vice president of research and wellness at TELUS Healtha Toronto-based wellness services provider, these benefits may be more valuable to some employees than others.

“For employees such as working parents or caregivers, traveling may not be something they need. In that case, organizations could consider alternatives so that employees do not feel like they are giving preferential benefits to some over others,” he says.

As the environmental issues of air travel become more relevant, companies will also need to consider how to strike a balance between offering free travel benefits while considering their impact on the environment.

Allen also says that financial incentives should not be used as a washcloth to avoid a bigger problem: “These benefits do not replace the need for health and wellness support. in addition to the need for a strong and effective work culture. If a workplace is not psychologically healthy, financial support will not remove this negative impact,” he says.

Allen adds that we will continue to see companies joining this trend in one way or another.

“With the rise of nomadic workers and flexible work policies of some companies allowing employees to work from different parts of the world, there is a clear need for travel among employees,” he says.

Looking ahead, he says, “employers will focus more on supporting financial wellness and increasingly connecting financial wellness with mental wellness.”

König agrees: “The whole idea of ​​what is included in a salary package is about to change,” he says. “Paid vacations, healthcare, lifelong training, everything will become much more important”. (JO)