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November 2012 SABBATICALS Data and Statistics Compiled by the Center for Work & Family on behalf of Northern Trust November 2012 DATA & STATISTICS Sabbaticals: Society for Human Resource Management. “Sabbaticals Pay Off.” Vol. 56 No. 12. SHRM.org. (attached) o Only 4 percent of companies offer paid sabbaticals, according to the Society for Human Resource Management's 2011 Employee Benefits research report; however, more than 20 percent of companies on Fortune magazine's list of the Top 100 Best Companies to Work For do so o Sabbaticals help employers attract new employees and retain current ones o HR professionals at companies that offer the sabbatical benefit say it does not cost any extra money; other employees pick up the slack, so the cost is neutral o Some industries or organizations need sabbaticals more than others. HR professionals say employers in fast-paced, high-stress fields, such as high-tech or finance, should consider offering an employee sabbatical benefit o Most companies that offer sabbaticals tie participation to years of service: commonly seven years o One to two months is the normal length of sabbaticals yourSABBATICAL o 2009 yoursabbatical.com presentation including: which companies offer sabbaticals, models, benefits to employers and employees o Sabbaticals allow the most valuable players to stretch themselves without leaving your organization to do so. Not surprisingly, companies report that it’s almost impossible for competitors to poach these employees within a few years of sabbatical. So your company saves on recruiting and re-training costs, which can be 150 – 200% of a person’s salary. Sabbaticals are particularly valuable in high burnout industries. o 61% of 30,000 Accenture employees named sabbaticals as one of the top five most-favored options for work-life flexibility Source: Accenture o In 2007, 34 of the “100 Best Workplaces in Europe” offer paid sabbaticals. Source: Great Places to Work Institute. o A survey of 200 top businesses in the UK showed that 15% allow sabbaticals for volunteering projects. Source: Business in the Community / TimeBank. ADDITIONAL REOURCES ON SABBATICALS Fast Company. “Why Sabbaticals Are Good For Businesses, As Well as Employees” o Opportunity for organizations to reduce costs and preserve their investment in their employees for the future o Method of “keeping faith” between a company and an employee whose skills are not immediately in demand but might be in the future o Retain employees’ goodwill, which can be lost in the humiliating downsizing process o Returning employees are re-energized and more productive o Help employees gain perspective and return to work with a stronger commitment to the company o Sabbaticals also build loyalty. After returning from a sabbatical from Kimpton Hotels & Restaurants, one employee said “I can never imagine working for anybody else.” o A company paying it forward will allow that employee to experience all the things that feed the creative soul, and assist them in the next phase of their careers without having to deal with them possibly leaving or burning out. Fortune Magazine: Should companies offer sabbaticals? Alexandra Levit o Sabbaticals provide an opportunity to acquire interpersonal and professional skills that you one may not develop otherwise o Companies with sabbatical programs are often very stable, so an economic downturn won’t always impact an existing program or discourage employees from using it. However, the current recession has limited the number of new companies implementing sabbatical programs o Sabbaticals often produce new relationships or partnerships that benefit the home office, as well as opportunities to explore new markets. o Not all sabbaticals are equal. Those employees who fully detach from their workplace experience the best sabbatical results o Sabbatical location is important. Adjusting to a new routine can be difficult, so sabbatical-takers would do well spending their time in an area or country where it's easy for them to adjust and focus on learning and exploration o Managers have to be willing to cut the cord with their employees on sabbatical, physically and electronically. Bloomberg BusinessWeek: Nice Work If You Can Get It A handful of companies offer sabbaticals -- and insist that they're worth the cost o A recent study in the Journal of Education for Business found that the benefits of sabbaticals outweigh the costs when a good understanding between employer and employee regarding expectations is involved. o Employees return more committed and more energized. In fact, sabbaticals are so alluring that companies report that it's almost impossible for competitors to poach anyone within a few years of his bonus vacation. The absences also give managers a chance to see how well others perform while filling in for their on-leave colleagues. o Studies have found that regular vacations don't allow enough time for rest and reflection. A third of employees don't even take all of their time off, with the same number reporting that they feel chronically overstressed at work, according to a recent study by the Families & Work Institute. The New York Times: Sabbaticals Aren't Just for Academics Anymore, Hillary Chura o In addition to keeping employees productive and preventing burnout, sabbaticals can also help companies keep their most valued employees in slow times. Rather than lay them off, a top performer may receive reduced pay and a sabbatical until business picks up and he or she can resume full salary. o The number of companies that offer sabbaticals will increase as companies seek to retain baby boomers who are approaching retirement age and want time off but do not want to sever ties to employers. Inc.com: All Employees Deserve Paid Sabbaticals, Joe Reynolds o Everyone needs to recharge. o Appreciation goes a long way. I give tremendous latitude, sabbaticals included, and it's appreciated. People who love their job perform better. o They gain worldly perspectives. Learning new cultures only helps bring fresh thoughts to the table on your next project. o Valuable family or friend time. o Going outside of your comfort zone elicits unconventional ideas and breeds creativity. HR Magazine: Time to Refocus, Matt Bolch (attached) o Offering paid sabbaticals can be less of an extravagance than it may first appear if it aids in retention and thus reduces the costs of hiring and training new employees. o Especially in customer-intensive businesses, it’s a very effective hedge against burnout. o McDonalds’ sabbatical program enables employees who are not on sabbatical to stretch their abilities and try new jobs by filling in for an absent colleague for a couple of months. Doing so affords an employee a much clearer understanding of a job—and of his or her own aptitude for it—than could be gained by filling in for a week or so during someone’s vacation. Journal of Applied Psychology. Sabbatical Leave: Who Gains and How Much? o A sample of 129 faculty members on sabbatical and 129 matched controls completed measures of resource gain, resource loss, and well-being before, during, and after the sabbatical. o Among the sabbatees, resource loss declined and resource gain (ex: energy, knowledge, support) and well-being rose during the sabbatical. The comparison group showed no change. o Analysis revealed that those who reported higher respite self-efficacy and greater control, were more detached, had a more positive sabbatical experience, and spent their sabbatical outside their home country enjoyed more enhanced well-being than others. o Employers and colleagues should let them detach by not using “electronic tethers,” such as cell phones and e-mail, for the sake of the sabbatees’ well-being. o Greater well-being, though temporary, holds promises of higher future productivity. o Because more companies are offering sabbaticals as a means of motivating their best performers managers can apply the insights of the present study and tailor sabbatical programs to maximize their benefits. FORTUNE BEST COMPANIES WITH SABBATICALS 2012 Fortune Best Places to Work (23 offer sabbaticals-up 2 from 2011) Roundtable Member Contacts Please feel free to get in touch with fellow Roundtable members regarding sabbatical results at their companies: Deloitte: Amy Gleisner: [email protected]; 312-218-4264 or Wendy Berk: [email protected]: 617-437-2015 Genentech: Pamela Englund: [email protected]; 530-613-5535 or Monica Poindexter: [email protected]; 650-225-8562 Intel: Dana Vandecoevering: [email protected]; 503-613-5346 PwC: Jennifer Demirdjian: [email protected]; 312-298-4025 .
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