Employee Vacation Time Benefits Employers Too
Is all work and no play good for American workers? Evidence suggests that vacation time is important for both mental and physical health.
It’s no secret that Americans generally get less time off than their counterparts in other industrialized countries. Employees in European Union countries get four weeks of paid leave by law, for example, while most U.S. workers must work full-time for more than a year before earning two weeks of paid leave — a benefit that is not required by law.
Worker Health and Productivity
Vacations mean more than just time off for fun. They also provide valuable mental and physical health benefits.
Regular vacations lowered risk of death by almost 20 percent in middle-aged men, according to a study published in 2000 by the State University of New York at Oswego. Twenty years’ worth of data from the Framingham Heart Study found that women who took two or more vacations a year cut their risk of a fatal heart attack by half. Evidence also shows that physical ailments can decrease or go away entirely during vacations, and they tend to stay away for a period after an employee returns to work.
Employee vacations benefit employers as well. Employee burnout rates decrease significantly during vacations, and life satisfaction increases. After a vacation, many employees find their work more interesting and become more efficient at their jobs, and the rate of absenteeism actually decreases. Conversely, when people don’t take the time off that they need, their health deteriorates — emotionally and physically — often resulting in medical expenses and more time away from the job.
The current competitive job market and tough economy affect employees’ attitudes toward vacation.
In a recent survey by CareerBuilder, nearly one-quarter (24 percent) of full-time workers said they couldn’t afford to take a vacation in 2011, citing financial constraints and demanding work schedules. Another 12 percent reported they could afford a vacation, but didn’t plan to take one this year. Even among those who take a vacation, 30 percent will not be completely off-duty, planning to contact their office during vacation.
Workers worry about losing their jobs, and many feel that if they take a vacation, they could be replaced. Some fear they’ll be seen as lazy for taking time off. But taking time off has nothing to do with commitment, as workers who take time for themselves are actually better employees. Employers need to communicate that message, and develop policies that are consistent with that message.
Paid Time-Off Plans
Both workers and employers have begun to view flexible time-off plans as the best way to ensure that employees take days off when they need them. A paid leave bank combines personal, sick and vacation days into one pool; details vary by employer. Some add a number of paid holidays, with the total number of days off based primarily on tenure. Organizations frequently permit rollovers into the following year, with a cap on the number of days that may be saved. Some employers allow employees to “buy” or “sell” a certain number of additional days each year to take unpaid leave.
From 2002 to 2010, the proportion of employers offering paid leave banks jumped from 28 percent to 40 percent, while the proportion of employers offering traditional sick leave and vacation leave packages declined from 71 percent to 54 percent.
Flexibility Counts
Flexible time-off plans provide advantages to both workers and employers. Employees like the plans because they can take leave for whatever reason they require. The employer can eliminate situations where employees call in at the last minute pretending to be sick, when in fact they could have requested time off in advance.
Most companies do require that all time off be pre-approved and, as a rule, limit the number of employees who may be out on a given day. This may reduce scheduling flexibility, especially for employees without seniority. But employers say that having this control allows them to balance workers’ time off so that it does not adversely affect productivity. While there will always be those who still call in at the last minute, flexible leave programs can help foster an environment of mutual respect between the employer and employee.
Regular vacations are preventive medicine — they cut down on stress-related illness and save healthcare dollars. If you want to attract and keep loyal, committed and healthy employees, make sure your company supports time off, both in policy and in practice.
How Do Vacation Benefits in the U.S. Compare?
In the European Union and Australia, employees get four or more weeks of paid annual leave; Canadians get a minimum of two weeks of paid vacation after each completed year of employment.
The U.S. is one of nine countries that do not require employers to provide employees with paid vacation time. Employers determine whether to provide paid vacation, and how much, to their employees. According to 2010 U.S. Bureau of Labor Statistics data, after one year of full-time employment, 37 percent of workers in private industry got five to nine paid vacation days, and 38 percent got 10 to 14. Among part-timers in private industry, 48 percent earned five to nine paid vacation days after a year of employment.
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