Company Retreats: On-Site vs. Off-Site

With remote and hybrid work becoming the standard for many businesses, the humble corporate retreat has taken on a new level of importance. When your team is spread out or rarely sees each other in person, getting everyone together is about more than just strategy sessions—it’s about building the relationships that drive productivity.

But planning these events brings up a big logistical question immediately: Should you host a smaller-scale affair right in your own office, or pack up and head to an off-site location? Both options have their merits, and the right choice usually comes down to balancing your goals with your budget. Here is how to weigh the pros and cons of each approach to make the smartest decision for your team.

The Case for Staying On-Site

For many businesses, utilizing their own office space is the most practical starting point. The primary advantage here is cost control. By staying on your company’s premises, you immediately eliminate facility rental fees, which can take up a significant portion of a retreat budget.

However, saving money can come at a cost to the experience. The biggest downside to an in-office retreat is that it often feels like "just another day." Employees might find it difficult to switch into a creative or strategic mindset when they are sitting in the same chairs they use every day. Furthermore, the temptation to "quickly check email" or run back to a desk to answer a voicemail is strong, which can derail the focus and team-building aspects of the event.

The Benefits of Going Off-Site

If the goal of your retreat is to break routine and foster deep focus, an off-site location is usually the superior choice. Getting your team into a new environment removes the visual cues of the daily grind. Without the pull of their regular desks, workers are generally better able to focus on the agenda and connect with their colleagues.

While this option incurs higher costs—venue rentals, lodging, and travel—the return on investment can be significant if it leads to a breakthrough in strategy or a stronger company culture.

Strategies to Lower Off-Site Costs

Going off-site doesn't mean you have to break the bank. Hotels and event facilities want your business, and many aspects of a booking are negotiable.

• Time it right: You will have much more leverage if you avoid booking during seasonal peaks when venues are busy with weddings and industry conferences.
• Bundle your costs: Hotels often make their biggest margins on food and beverages. Try to negotiate a flat price for food and drink for the entire retreat rather than paying a per-person or per-item rate.
• Ask for extras: Because they make money on catering and setup fees, venues may be willing to offer complimentary or discounted rooms for guest speakers or employees traveling from out of town.

Understanding the Tax Implications

Regardless of where you hold your retreat, it is crucial to understand how the IRS views these expenses. Some costs associated with your company retreat may be tax-deductible, provided they meet specific criteria.

Generally, these expenses must be considered "ordinary and necessary" for your business. They cannot be extravagant, and you typically cannot deduct expenses for employees' spouses. It is also important to note the distinction between different types of costs:

• Business meals: generally only 50% deductible.
• Entertainment costs: generally nondeductible.

Keeping clear documentation is key to maximizing these benefits without running afoul of regulations.

Making the Right Call for Your Business

Deciding between an on-site and off-site retreat isn't just a financial calculation; it's a strategic one. If your budget is tight and you need a quick sync-up, your office might be perfect. But if you need to shake up thinking and truly bond as a team, the investment in an off-site venue could pay dividends in future productivity.

We know that navigating the financial side of business events—from budgeting to tax deductions—can get complex. If you need help understanding which expenses are deductible or want to plan a retreat that makes financial sense for your bottom line, we are here to help. Reach out to us at SD Mayer & Associates, and let’s ensure your next retreat is a success on all fronts.