Why Offering Your Staff Paid Vacation Can Be Profitable

Introduction:  I was recently asked to write an article for one of the local Chambers of Commerce of which I am a member.  Although this is more business than travel, I think it makes sense as a blog post for those of you that own businesses and those of you that are not using all of your vacation time.

After over 20 years working with businesses in the advertising field, before opening my Cruise Planners franchise, the one constant issue across all industries was labor.  Getting, and keeping, good team members was a recurring problem for many of my clients.  There are many things business owners need to overcome when it comes to keeping their businesses fully staffed. 

First, you have to look at the available talent in the market place.  It’s not always what you need.  Then you have to be able to pay a competitive wage.  That can be difficult when up against mega-chains offering the same goods or services you do.  Then, there’s the training.  A well trained employee not only represents your business properly, but is also much more satisfied with their position and less likely to move to another company.  But where do you find the time to properly train a new hire?

Fortunately, for me, my small business is me.  But for many others out there, you have challenges every day in attracting and keeping the staff you need.

One way to increase employee loyalty and productivity, is to offer a generous and formal paid vacation plan.  Study after study shows how taking time off from work helps employees perform better at their jobs.  Additionally, it’s not just about the money.  Workers want to feel appreciated by their employers, and a vacation package makes them feel appreciated.

Vacation deprivation increases mistakes and resentment at co-workers, Businessweek reported in 2007. "The impact that taking a vacation has on one's mental health is profound," said Francine Lederer, a clinical psychologist in Los Angeles told ABC News. "Most people have better life perspective and are more motivated to achieve their goals after a vacation, even if it is a 24-hour time-out."

One study, Project: Time Off actually states “If workers used all of their available paid time off, the economy [/entity] would benefit from more than $160 billion in total business sales and $21 billion in tax revenues, spending that would support 1.2 million jobs in industries ranging from retail to manufacturing to transportation.” That’s an awful large sum of money.  Granted, it’s the entire US workforce, but some of that would come back to your business if you were making sure your employees were offered and taking their vacations.

Getting away from work and taking vacation, even if people just stay at home, gives them a chance to reconnect with their family.  The lower stress levels from a happier home life definitely spills into the work environment.  How many times has the reverse been true of your staff?

The lowered stress levels by taking time off work also offers health benefits.  As a business owner, you can expect less sick days from your employees and their time off is more regulated and scheduled, instead of scrambling to cover an employee due to an unplanned illness.

Most business owners are aware that European businesses offer twice the vacation time of US businesses.  It may surprise those same business owners to know that those European workers are more productive and more accurate, especially right after time off.

Let’s face it.  One of your business’ biggest investments is your staff.  Constant retraining due to turnover is horribly expensive, not to mention confusing to your customers.  Having your business represented to your clients by loyal and competent staff is priceless.  Giving them time to recharge their batteries will make you money in the long run.

It’s not just about your employees.  Recharging your batteries is important too.  Too many business owners don’t take time off from their businesses, for obvious reasons.  Your health, personal relationships and productivity need to be protected by taking a break once in a while.  Taking a vacation once in a while can actually help you grow your business.