Paid Mandatory Vacations – not such a radical idea anymore!
Many companies offer vacation as part of the employee benefits package but what if companies took it one step further and actually paid employees to take vacation? This would be in addition to the money employees are given on top of their accrued time off. While this may sound like a radical idea there are many compelling reasons why this could be a smart move for both employers and employees.
A vacation funding account is an amount of money that an employer provides to employees specifically for the purpose of taking a vacation. This employer contribution can be used to cover a variety of expenses including travel, lodging, and food and can help to make taking a vacation more financially feasible for employees.
There are a few different ways that vacation funding accounts can be structured. Some employers provide a set amount of money to all employees, while others base the contribution on factors such as seniority or job performance. Some employers may also allow employees to accrue vacation fund contributions over time, which can help to make taking a longer vacation more affordable.
Here are some cutting edge organizations that are offering this benefit.
| Company | Annual Benefit |
|---|---|
| AFAR Media | $2,000 |
| Bamboo HR | $2,000 |
| Evernote | $1,000 but employee must take five or more consecutive days off |
| Moz | $3,000 |
| TSheets | $1,500 |
When an organization combines an employer contribution with a plan that allows employees also to save for vacation with their own contributions, the impact of the vacation grows exponentially. And when these plans are wrapped around a deep discount travel planning platform, the company, and the employees’ dollars, go even further.
There are several financial and cultural impacts for considering this type of benefit. First and foremost, ensuring that employees take an optimized vacation can be a way to reduce stress and improve mental health. When employees are overworked and burnt out, they’re more likely to experience symptoms of anxiety and depression. Causing the employer healthcare costs to increase.
In addition, adding to an employee vacation account can be a great way to retain top talent. When employees feel that their employer values their well-being and is willing to invest in their personal and professional development, they are more likely to stay with the company long term. Offering this unique plan can also help attract new talent to the company, as it is a highly desirable benefit for many job seekers.
Furthermore, paying employees to take vacation can increase productivity and creativity. When employees return from a vacation feeling refreshed and rejuvenated, they are more often motivated and focused on their work. In fact, studies have shown that employees who take regular vacations are more productive and have better job performance than those who do not.
Employees who feel supported and cared about by their employer are more likely to experience a sense of well-being. This can lead to increased morale and better overall job satisfaction and company loyalty.
