"At first glance, business leaders may think that sabbaticals are managerial insanity, particularly in times like these," says Elizabeth Pagano, co-founder of yourSABBATICAL. "However, once one takes a deeper look, they understand that the benefits of sabbaticals far outweigh the perceived unorthodoxy."
According to the organization, when companies are in “survival mode” honing in on human resources is more important than ever. According to yourSABBATICAL an employer may elect a sabbatical program for their workforce in order to:
- Circumvent layoffs. Sabbaticals
can become a short-term strategy to save money now while retaining key
workers.
- Preserve and protect human capital.
Companies that fail to offer programs that motivate and inspire their employees
risk curbing productivity levels and even losing staff.
- Nurture innovation. A paid or unpaid break in the work routine may rejuvenate the individual employee, who upon return from their time off – which yourSABBATICAL defines as at least a four week break – will infect the workplace with their renewed vitality. The company points out that typical “flex” programs don’t foster the same level of renewal or creativity that flows from a sabbatical program.
- Become a talent magnet. Despite a
weakened economy, businesses will compete for talent. Bear in mind the
economic phenomenon of “adverse selection,” where the least productive
workers are the most likely to stay when wages are cut or frozen while the
high achievers look elsewhere. “As pay increases are nearly extinct, time
has become the new currency,” affirms yourSABBATICAL.
- Increase loyalty. Organizations that treat their
human capital well in difficult times will see their considerations
reflected in the staff’s loyalty and general goodwill.
"When you take smart, successful people out of their
daily grind - and often their safety zones - and give them the opportunity to
expand in real life, they return pumped with new vigor which translates to
higher performance," says Barbara Pagano, also a founding partner of
yourSABBATICAL.
However, sabbaticals are not a perk, but rather are in place to rejuvenate and reward top performers. Elizabeth Pagano explains:
"We are not talking about the old model of sabbaticals as a 'perk' that companies could offer," said Elizabeth Pagano. "We are talking to companies about implementing strategic programs to hold on to their hotshots; to care for and feed their superstars, now and over the course of entire careers with significant benefits for all."
On the other hand:
Mandatory furloughs
Another option available for employers considering layoffs is mandatory furloughs, like those introduced by American Airlines Inc., Gannet Co. and Media General Inc. Nevertheless, with furloughs come a number of challenges of which the employer must be aware before initiating such a program.
First off, employers should make sure that no employment agreement exists that would bar them from taking action or that would allow employees to claim that they were “legally promised” a certain amount of pay, explains Doug Christensen, a partner in Dorsey & Whitney’s Labor and Employment Law practice group.
He points out that the Federal Labor Standards Act, along with most state wage and hour laws are not designed to be flexible or to expedite the concerns of the present workplace. With this in mind, wage and hour issues must be carefully examined by employers contemplating furloughs.
In addition, if exempt employees are involved, the furlough should not be conducted in a way that converts those exempt into non-exempt employees who could claim entitlement to overtime pay.
Employers should also be wary of mandating vacation or “paid time off” days during the furlough as some state laws do not permit this.
Finally, furloughs can depress employee morale even among the top performers, says Christensen. Thus, the employer should prudently weigh the costs and benefits of laying off poor performers rather than forcing all employees to take a furlough.
