Unplug! How and why to encourage employees to take a vacation

If you asked a business owner what’s the best employee benefit they offer, the answer would likely be the retirement plan matching contribution. When you ask employees, the health care benefit ranks highly, yet paid time off is high on their list. It’s been said 37% of workers prefer paid time off than pay raises.

According to the Bureau of Labor Statistics, 57% of employees participate in their firm’s health plan benefit, which the research indicates represents a 78% “take up rate.”  We know employees view paid time off as a valuable benefit. Bloomberg reports only 48% of employees take all their vacation days. It’s a valuable benefit. According to Forbes, 30% of employees consider mandatory paid time off as a top benefit.

Some people feel they should be working all the time. Some managers convey this expectation, considering taking vacation time as a weakness or a lack of commitment to their career. The company culture does not promote time off or does not highlight the need.

The history of time off from work goes back a long way

In the UK, the Great Western Railway operated its factory is Swindon. In 1874, the company would close for a week, providing all employees (and their families) with a seaside holiday. They ran special trains to provide transportation. As many as 29,000 would go on holiday!

How can employers encourage employees to use their paid time off?

Your employees probably get 10-14 days of vacation time, if the average from the Bureau of Labor Statistics accurately describes your firm’s policy. How can you encourage a culture of enjoying time away from the office?

1. Make the policies clear and easy to understand. People should not need to talk about vacations and time off in whispered conversations. Your firm should promote time off as a benefit provided by the firm. Highlight its importance from industry surveys.
2. Promote longevity benefits. Do more years of service mean more vacation time? This means there is a service requirement aligned to the number of your paid vacation days. This is another benefit! The BLS indicates after 10 years, 33% of workers get 15-19 vacation days and 23% get 20-24 days. Put another way, that’s three or four weeks after 10 years.
3. Talk about scheduling on a regular basis. It can be a problem in a “use it or lose it culture” when everyone wants to take time off towards the end of the year. Highlight time off as a benefit and encourage people to plan early. Young parents might want to plan vacations when their children are out of school for the summer.
4. Vacation club savings accounts. These still exist, along with Christmas clubs! Your firm might not offer a vacation savings plan, but local community banks might have it on their product list. Some employees are not good at saving for the future. Letting them know these accounts are available locally might help them plan.
5. Does your company offer a cash vacation benefit? If you are in a competitive market and find it hard to attract or retain staff, this could be a good idea. CNBC reports several employers have already taken this step.
6. Is there a corporate travel benefit available? Maybe you don’t offer vacation cash, but can your employees take advantage of your negotiated rate with hotel chains? This is something you might discuss with your travel department.
7. Get people to share stories. When you want to change behavior in the sales department, you get top salespeople to share success stories. How about encouraging employees to share vacation photos and tips on great travel deals they have landed?

Related: How generous PTO can increase productivity and retention

Time off is a great benefit. Your employees should return refreshed. The longevity benefit might help with retention too.

Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor” is available on Amazon.