A growing number of employers — discouraged by having burned-out and disengaged workers — are looking to get people out of the office by offering vacation bonuses or a vacation savings plan
North American workers are notorious for not taking full advantage of yearly vacation. One solution? Employers actually paying people to take time off.
One U.S.-based company, for example, provides US$2,000 to each employee, once per year, for one trip or experience.
“We offer this benefit because we know that taking vacations is sometimes exactly what people need to do great work,” says Cassie Whitlock, director of HR at BambooHR in Provo, Utah. “By only allowing the money to be put toward a vacation, it’s guaranteed that employees get a much-needed holiday, and BambooHR ensures the money is put to good use, unlike many bonuses or other company gifts.”
The trend seems to be growing in popularity, according to online job search firm FlexJobs in Boston, which discovered 14 companies in its database of employers that offer to pay for vacations as an employee benefit.
“They want to encourage their employees to actually take their vacation,” says Brie Reynolds, career development manager at FlexJobs. “They’re making it harder for the employees to say no or to not think about going on vacation.
“This is a very tangible perk that really sticks in people’s mind a little bit more than some of the perks that we’ve seen over the last 15 or 20 years, like ping pong tables and unlimited snacks,” she says.
Companies such as project-management software provider Basecamp provide 16 vacation packages, worth between US$4,000 and US$5,000, while travel booking company Travelzoo provide employees US$1,500 and three additional days off per year.
Other options to get employees out of the office
While unlimited time off has cropped up as a trend at some companies recently as a way to force workers out of the office, this didn’t work out as planned in some cases, according to Reynolds.
“When you get an unlimited vacation policy, there is almost a hesitancy among employees to actually take their time because there’s no limit and so employees actually feel a little bit more nervous about taking that time,” she says. “That’s really the opposite of what companies were trying to do when they offered unlimited vacation.”
As an alternative, Toronto-based Vacation Fund offers employers a savings plan for employees, which is matched by employers, to save for yearly vacation trips. Employers such as Willful, Zoom.ai and PureFacts in Toronto have decided to offer the fund.
“It illustrates to our candidates and employees that we care about their personal renewal, encourage them to recharge, and that we are pretty cool and cutting edge,” says Andrea Boileau, director of people operations at PureFacts Financial Solutions, in a testimonial.
When asked what prevents them from going on vacation, 50 per cent of people say they’re saving but they don’t have the budget, while the other 50 per cent say they’re hesitant to take time away from work, says Erica Pearson, CEO at Vacation Fund.
“Regardless of your age or your gender or your income bracket or your marital status or your stage of life, everyone should be able to take some time off at some point.”
HR should study vacation habits before coming up with specific ways to encourage time off.
“What is the situation at your company? That really helps you figure out what the solutions would be to remedy whatever the data tells you,” says Reynolds.
“If it is that you offer people three weeks of vacation time a year, but really it looks like people on average take one-and-a-half weeks, maybe you decide to switch to a minimum policy.”
For HR, it’s important to be thoughtful about policy details, says Whitlock.
“Don’t create unnecessary red tape around utilizing time off. This includes managers to avoid inconsistency messaging and policy application,” she says. “Consider staffing needs and how you can cover work getting done when someone is out on vacation.”
Vacation shaming a challenge
There are several other factors that prevent workers from taking time off, says Reynolds.
“Part of it’s just the general culture of work in in the U.S. We place a higher priority on working and being productive and spending time at our jobs than maybe other countries do. We really do just have this cultural sense that work is a very important thing and that we should spend a lot of time doing it.”
Different generations view personal time off differently, according to Whitlock, which complicates matters for employers.
“The younger workforce places a higher value on quality in their personal life. We’ve seen this group even asking to take unpaid time away from work to pursue vacations, adventure and unique personal opportunities not related to their career. In contrast, a gen-X employee [is concerned] about how their beliefs and values push them toward working hard and proving their value at work.”
Vacation shaming is another trend that may also explain why workers are reluctant to leave work.
“If someone is just about to plan some time off, a comment as harmless as, ‘Oh, that’s going to be a really busy month’… means that person is either not going to take the time off or, if they do take the time off, they’ll probably be checking their phone the whole time to see ‘OK, do they need me? What am I missing?’ and they’ll feel guilty about that time off,” says Pearson.
And vacation shaming is not always obvious, says Whitlock, as sometimes it is an “unplanned, even subliminal, outcome. How often have you seen a manager or senior leader express appreciation for an employee who stayed late to complete a project or worked all weekend to meet a deadline? And now compare to that the last time a leader thanked an employee for being thoughtful about self-care and having balanced priorities.”
Mental health gains to vacation time
Another reason to encourage people to leave their desks? A rise in burnout and short-term disability claims related to mental health, says Pearson, citing comments from tech and corporate executives in Toronto.
For companies such as BambooHR, the downside to not taking full advantage of vacation time is profound.
“Two words: burnout and disengagement. We all need breaks, and without the proper rest and recovery periods, we wear down over time,” says Whitlock. “Disengagement can start when employees feel overworked or unappreciated. As disengagement sets in, innovation and productivity suffer.”
The mental health benefits of time off can be impressive.
“Especially at a lot of technology-based companies, we’re connected all the time; sometimes, people just need time off to rest and to take time for themselves and that’s great because we are incredibly busy. It’s go, go, go, do the same things every day, and we live our lives on autopilot,” says Pearson.
“Experiencing something new or taking yourself out of your everyday routines forces you to be present in that moment, and any situation or any circumstance that forces someone to be present all of a sudden can make them more creative, and it can make them then have a different perspective and become, upon returning from that time off, more productive, become more energized.”
People are just better employees when they return from vacation, says Whitlock.
“By giving employees enough time away from work [and if employees really disconnect], they can return to work more recharged and ready to perform their best. The ability to come back to work, day after day and give your best effort is known as resilience, and it’s a key element of any successful working team.”
NOT ENOUGH CANADIANS USING ALL THEIR VACATION TIME
9%
Percentage of Canadian workers taking more than 21 days off each year
30%
Percentage of STD and LTD claims for mental health issues
70%
Percentage of disability payments for mental health issues
54%
Percentage of Canadians who feel vacation-deprived
Sources: Robert Half, Canada Life, Expedia
