Rewarding Employees with Time Off

Days Off are the New Short-Term Incentive say Frank Roche and Sarah Chambers of KnowHR.  And I think they're on to something.

I worked a few years ago with an organization that would award a half-day off with pay to all employees as a reward for meeting certain organizational goals.  In this case, it was the same half-day for everyone; they literally shut the place down for an afternoon.  I conducted employee focus groups there about a month after the first half-day was awarded, and people were still talking about it.  They loved it.  LOVED it.  And because they all earned it and enjoyed it as a group, it was huge for the esprit de corps.

I have also partnered with a couple of clients to create a reward element that combined time off with a developmental opportunity.  Employees who performed exceptionally well, in addition to earning bigger salary increases (this was a merit pay shop), also received a day or more off with pay, along with a professional development allowance to spend as they wished (within certain guidelines).

I think what Frank and Sarah have in mind is something more fundamental than that: the introduction of time off as another currency to consider in designing incentive and other reward programs.  And the potential applications are probably limitless.  Time off is an increasingly valuable commodity in our too-hectic lives, and not just for Gen Y and Millenial workers.  A number of us time-off-starved Baby Boomers have seen the light here as well.

And if belt-tightening is in our organizational futures, time off could be a cost effective and  appreciated addition to our portfolio of employee rewards.

Comments

[Frank Giancola]

Ann,

You are right on the money with your insights. Some colleges have featured their great vacation plans when recruiting employees to overcome being low on pay, when compared to business. No reason why others can't take the same approach.

Frank

[Ann Bares]

Frank:

Good example. Colleges have done a great job of creating a labor market advantage with the "perks" that they are in a unique position to offer - like time off, tuition benefits, etc.

[Wally Bock]

Many two career couples have plenty of money, but no time. For them, time is a valuable currency indeed.