M: Business 3rd Edition by O. C. Ferrell, Geoffrey Hirt, Linda Ferrell

Exercise 87

During the most recent recession, several organizations decided to decrease employee incentives (perks) due to the difficult financial environment. Although incentives are rising again, there are still fewer employee perks than there were prerecession. However, some employers are taking an unusual approach by offering more time off as a reward—even for part-time workers. Indeed, a survey of companies in the Washington, DC/Baltimore area revealed that 73 percent of surveyed employers now offer paid time off to part-time workers rather than creating full-time positions, which come with their own share of costs.

Three companies that reward employees with extra time off include Travelzoo (a global travel deal website), Bluewolf, Inc. (an IT consulting firm), and Patagonia. At Bluewolf, emphasis is placed on outcome rather than time spent at a desk, enabling its 175 employees to take unlimited time off to travel, volunteer, and more. Travelzoo offers its employees of more than one year an annual $1,500–$32,000 with three extra vacation days and the chance to snatch up a deal listed on its site. In return, employees are merely required to submit pictures and brief write-ups to the company’s subscriber newsletter. After one year of employment, Patagonia covers up to 60 days’ worth of an employee’s salary to allow the employee to volunteer with a grassroots organization. Like those at Travelzoo, employees are asked to report back about their experiences.

Studies have suggested that these types of incentives boost bottom-line profits and enhance employee retention. Points of Light Foundation claims that over 80 percent of companies feel that volunteering raises profits. This may be due to the fact that consumers are increasingly doing business with socially responsible companies. Employees also become committed to companies that give back to communities and appreciate their efforts.

Do you think providing time off is an incentive that will increase employee performance?

Step 1 of 2

Providing time off can be a secret to increased employee’s performance. Employers who want to boost their employee’s performance can encourage them to take a break from work. This time off policy can be a strong benefit that increases employee engagement, productivity and performance.