PHWP: Good Company Newsletter: Who Has Time for a Vacation?

September 24, 2008

Who Has Time for a Vacation?

By Christine Fitzpatrick

Increased cost of living and economic uncertainty encroached on many vacations this summer, but Expedia’s 2008 International Vacation Deprivation Survey highlights widespread under-valuing of vacation time in the U.S. workforce. Not only has one in five U.S. employees canceled or postponed a vacation because of work, but 31 percent don’t use all their allotted days. In 2008 alone, this translates into approximately 460 million unused vacation days, worth a total of $65.52 billion.

Employees often cite problems scheduling, wanting to sell back unused days and high work demands as reasons for not taking time off. Although some employers may view employees who never miss a day of work as role models, dissatisfaction and burnout can take their toll on employee well-being, as well as organizational performance.

The All-American Vacation

Vacation benefits may not drive HR strategies or determine career choices, but 77 percent of U.S. workers have access to vacation and holidays. Although widespread, vacation benefits amount to only 3.3 percent of employee compensation, costing employers less than other legally required benefits such as Social Security and Medicare. On average, Americans receive nine days of paid vacation and eight paid holidays per year. Low-wage earners, part-timers and employees who work for small businesses generally get fewer days. With almost a quarter of employees lacking access to vacation days and holidays, the United States is the only advanced industrialized economy that does not guarantee employees paid leave.

In contrast, organizations in Australia and New Zealand must offer employees at least twenty days of vacation per year. Both Canada and Japan require employers to give employees a minimum of 10 paid days. The EU mandates that all employees receive a yearly minimum of twenty days paid vacation — between paid leave and public holidays, Europeans average thirty-four days off. Although European workers also don’t typically use all of their vacation, comparatively they are still taking more time-off than U.S. employees. For example, although 20 percent of French employees leave days unused (one of the highest rates in Europe), they also receive at least 30 days of paid vacation, not including any additional legally mandated paid holidays.

Vacation Quality Counts

When U.S. employees do manage to take a vacation, it’s rare that work gets left behind. A recent CareerBuilder survey reported that 25 percent of employees planned to stay in touch with work while on vacation and 9 percent of bosses expected them to be in contact, checking voicemail and emails. Having employees who keep up with work during their vacations may seem like a plus for the organization, but less than 40 percent of employees feel better about their jobs and more productive when they return from vacation.

Employees and employers can benefit from vacations, but simply taking time off from work is not enough. Effective vacation planning and management can help enhance the benefits of a holiday or trip. A 2006 study by Fritz and Sonnentag showed that vacations can reduce health complaints and exhaustion, ease the effort required to do daily tasks, and generally boost well-being and performance-related outcomes. However, several factors can interfere with these positive effects.

Employees who experience stress, non-work hassles, ruminate on negative aspects of their careers and dread work building up during their absence, return needing more energy to do their jobs. Considering that 29 percent of employees report trouble coping with work stress while on vacation and only 20 percent indicate they spend their time-off resting, it’s essential to keep in mind that a vacation can have the opposite effect than intended and be draining rather than reinvigorating.

Management Matters

Managers can help employees plan restful and productive vacations by addressing obstacles and fostering a vacation-friendly work environment. By communicating the benefits of relaxing during time-off or by facilitating scheduling efforts, employers set the tone for vacation use. For example, employers can encourage taking vacation time during periods when the workflow is slow or allowing employees to go on vacation at times that meet their life demands, for example during their children’s Spring Break. Summer vacations still remain most popular among employed adults — 35 percent say that June through August are the most convenient months to take vacation.

Employees’ concern about work building up while they are away is understandable. According to the 2008 Expedia Survey, 17 percent of employees said they would be more likely to take vacations if their supervisors actively helped find resources to cover their job responsibilities and 19 percent would take vacations if workloads were lighter. Employers can address these concerns by pre-planning to redistribute the vacationer’s work. If a supervisor can help employees create a plan for covering essential job responsibilities during their absence and recognize those who fill-in for coworkers, employees can take time off without dreading a massive workload upon their return. Additionally, employers can encourage staff to schedule time, whether working from home or taking a half-day, to handle emails and other issues that pile up during their absence.

Building a culture that supports taking time off begins from the top down. Employers can show their support for using vacation time by setting an example — sixteen percent of workers said that if upper management took their vacations days, they would be encouraged to follow suit. Also, by integrating vacation time into a department’s workflow and recognition programs, the organization shows that it understands and values leave benefits.

A workplace culture that either explicitly or implicitly discourages employees from taking time off can diminish the benefits of vacation time for the employer and employee alike. This means a practice intended to reward employees and help them recharge can actually undermine their well-being and lead employers to miss out on an opportunity to improve recruitment, retention and engagement. Vacation policies that are customized to meet employee needs and a workflow that takes vacations into account support employees as they plan, enjoy, and return from a vacation, enabling them to come back to work ready to perform at their best.