How Small Businesses Can Craft Competitive Vacation Policies
Summer is here, and that means many employees are taking time off of work to go on vacation. According to a recent survey, 95% of small businesses provide at least five vacation days, and nearly one-quarter offer 11 to 15 days of paid time off (PTO).
Providing your employees with a robust vacation plan can help your company:
- Gain a competitive edge when recruiting
- Boost employee productivity
- Retain employees longer
In this article, we will demonstrate how to build a vacation package that gives you an edge in today’s competitive labor market.
Use this information to learn how your small business can provide a competitive PTO plan that helps you recruit and retain employees.
Consider a Paid Time Off (PTO) Program
PTO programs are an alternative to the traditional sick, vacation, and personal days offered by most companies.
These structures combine sick, personal, and vacation days into one plan, allowing employees to draw from a bank of paid time off whenever they choose.
For example, if your company provides 15 days of PTO per year, employees can take time off for sick days, religious holidays, and vacation days.
PTO programs provide employees with flexibility while helping businesses curb excessive use of sick and personal days.
Businesses considering a PTO program should make sure that their policies and offerings fit well with the needs of the company and its employees.
Institute “Summer Fridays”
Providing employees with additional flexibility in the summertime is an attractive flourish to your vacation package.
For example, “summer Fridays” are a popular trend among businesses and their employees. Summer Fridays provide employees with extra flexibility once a week to relax, have fun, or vacation more between Memorial Day and Labor Day weekend.
There are many variations of summer Fridays and businesses should choose the arrangement that works best for their company. Companies typically offer employees one of the following perks:
- Accruing extra hours during the week and using them on Fridays
- Taking a half-day on Fridays in the summer without using vacation or sick days
- Remote work on Fridays
- Flexible hours on Fridays
- Every other Friday off
Summer Friday programs do not draw from employees’ regular vacation, sick, or personal days.
Institute a Vacation Fund
Vacation funds are employer-matched savings programs that help employees travel more often.
Most employer vacation funds allow workers to direct a portion of their earnings into a dedicated vacation account. Then, the employer contributes an agreed-upon percentage of the investment, often matching the funds that employees deposit.
Why are employers willing to invest in travel for employees?
Vacation funds are an excellent perk to offer potential job candidates, and they can also help companies retain employees longer.
Also, statistics show that traveling contributes to job satisfaction. One study found that people who use their vacation time to travel are 24% happier with their jobs.
Well-Rounded Vacation Policies Help Recruit and Retain Employees
In a competitive labor market, competitive vacation packages are essential for businesses seeking to attract top candidates.
Consider PTO programs, summer Fridays, and vacation funds to attract and retain top talent.