Winter is biting. Hard. Does that mean we can dream about spring and summer vacations without guilt about polluting the atmosphere in the process of flying to far-off lands for new adventures? We all need a break. It is vital to keeping the tight labor force happy and productive.
Simple, right?
Think again. Vacations are hard work. As the American workforce ages, companies are rethinking their approach to granting leave and scheduling time off.
According to the U.S. Department of Labor's Bureau of Labor Statistics, 76 percent of all U.S. private industry employees are given paid vacations. More attention is being paid to making sure both the employee and the bosses get the most out of this time.
"There has always been the image that the United States is skimpier with vacations versus the rest of the first world nations, such as those in Europe," says George Faulkner, principal in Mercer Health Benefits Absence Management practice. "This is probably still true."
Indeed, the average salaried white-collar worker in Britain gets between four and six weeks of paid leave per year. In France, it is at least six weeks and for some lucky few, even more. At the French Ministry of Justice, some of the higher ranking judges can count on nine weeks of paid leave a year.
Sobering thoughts if you're employed in private industry in the United States.
"Paid vacation days, the average available after one year of service is 8.9 days. After 25 years of service it is 19.3 days for the private sector," says Natalie Kramer, an economist with the BLS in Washington, D.C.
According to a recent survey of private U.S. industry by human resource consultant Mercer, 12 percent of respondents said they intend to increase the number of vacation days or reduce the service requirement for some employees to gain vacation days within the next two years. There is also a growing trend to offer more vacation earlier in a worker's career, while reducing the total amount that can be accrued at the back end of a working life.
There's also a financial component: Managing vacation time is an added burden for employers. The survey found scheduled absences from work, such as vacations, paid-time-off plans, fixed holidays and personal/floating holidays, amounts to about 10 percent of payroll costs.
Meanwhile, the Mercer survey also found that depression and anxiety may be the fastest growing disability conditions in the workplace. While it may not be the top cost-driver, 43 percent of respondents said "they are seeing an increase in the frequency (or the associated cost) of depression/anxiety among their employees."
Moreover, "employees in financial services were the most likely to cite cancer and depression/anxiety as among the current top disability conditions, and the fastest growing." Analysts say those high powered executives are more likely than not to forfeit a couple of days out of their average four weeks of annual leave.
On top of that, in this age of cheap satellite phones and Blackberries, what high powered executive is not accessible anywhere on the face of the earth? Perhaps only in the most remote outposts will it be difficult to reach them, which raises an important question for both middle management and high-level executives. How do you spend your time away from work?
If people are in remote places, are they adventure seekers--pushing their bodies and minds to the limits--or are they getting the rest needed to recharge their organic batteries? Will they be sufficiently rested to be effective masters of their own universe?
"When people are overloaded, this puts them more at risk for heart attacks, but people want to do something exciting with their time off," says Christina Maslach, vice provost for undergraduate education and professor of psychology at the University of California, Berkeley.
An authority on 'burnout,' Maslach believes people need to assess how they use their time away. It is also a good time for assessing work conditions.
Maslach's research has led her to identify six factors that help to predict whether someone is on the road to a burnout that no amount of time away from the office will resolve.
First, she says, people need to assess whether there is a mismatch in how much time they have to handle their workloads. Secondly, there is the control factor: How much personal discretion does one have over his or her tasks? The third factor revolves around rewards--not simply monetary, but also recognition for a job well done. Fourth is whether there is a good work community. Healthy relationships and good communication are essential for a happy work environment. Fifth is the fairness factor. Is there a fair process for rewarding good work? Values are the final factor. Do your values match up with the employer's or is it a Machiavellian atmosphere?
"In some sense, the positive aspect of getting away may mean you don't have to think. But at the same time, if nothing changes while you are away," says Maslach, "that is not good."
Justin Daniels last wrote for Wealth Manager about global interest rates.
