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Flexibility Paid Time Off Policies Self Assessment - Exercise - Perspectives - Examples - Back to the Toolbox
Exercise: Read and Review - "The Work, Family, and Equity Index" What do countries like North Korea, Rwanda, Lebanon, Japan, Canada, Germany, Spain, and France have in common in regards to their approach to paid time off compared to the United States? They all require employers to provide their employees a minimum amount of paid leave each year, up to as much as six weeks! In addition, many countries also require employers to provide a weekly mandatory period of rest of at least 24 hours and have laws that fix the maximum length of the work week, either by setting upper limits for the total number of hours that may be worked or limiting the amount of overtime that can be worked in a certain time period. The United States has no such provisions, and next to Japan, has the second longest average work week in the world. And even in Japan, employees are required to take time off... Review the report: The Work, Family, and Equity Index. Why do you think the United States differs so significantly from other countries around the world? How do you think this approach to paid leave affects how employers structure their leave policies? How do you think this approach benefits employers and employees in the United States? Perspectives Based on points at which many U.S. employers typically increase maximum paid leave (1 year, 5 years, 10 years, 20 years), on average, if an employee stayed with the same organization for 25 years, they could take up to a little over a full year of paid leave over that period. By contrast, according to The Work, Family, and Equity Index described above, over the same period of time, an employee in Spain (for example) could take double that amount. There may be several issues which drive how paid leave policies are determined, but in general the reasons could probably be grouped into two main areas: trust and productivity. Consider the old adage, "...if you give them an inch, they'll take a mile." It is this type of perspective that influences how many employers set their policy in regards to paid time off and flexibility. The fear is that no matter how much flexibility is given, employees will find a way to take advantage of the system and the number of paid days off will never "be enough". Many employers simply don't trust their employees will use the system properly. The by-product of a workforce that takes advantage of a paid leave policy and doesn't show up for work is that productivity suffers. The less people show up, the more time it takes to get work accomplished, and as everyone knows, time is money. So in order to protect themselves, many organizations choose to write very strict attendance and paid leave policies that offer little flexibility and make paid time off contingent upon how much time people are employed with the organization. As a result, the concept has developed that paid leave is something that must be earned over time. In addition, many employees (for fear of seeming disloyal, under the belief that there is too much work to get done, or to appear as more of a devoted worker) don't even use their maximum number of paid days off each year. (See the Wall Street Journal article: "No Time for Time Off? Why We're Chained to Our Desks") However, the basic concept that paid time off is something that employees must earn over time may be questioned significantly over the next 10 to 15 years. As the remaining Veterans (born between approx. 1922 - 1943) and Baby-Boomers (1943 - 1960) begin retiring from the workforce, Generation Xers (1960-1980) and Nexters (1980 - 2000; aka: "Generation Y", "Echo-Boomers") will be moving up the chain of command and taking greater control over how organizations operate. Employers will need to recognize the differences in how these new generations approach work compared to their predecessors if they are to effectively attract and retain the best and brightest in the future. One major difference in how the generations approach work that has already been well documented is the relative importance placed on a work/life balance. While Veterans and Baby-Boomers in general have accepted the concept that paid time off is something that is earned over time, Generation Xers and Nexters don't necessarily subscribe to the same set of ideals. Instead, these new generations seem to take more ownership over their personal time and instead of "working to live" they want a job that allows them an appropriate balance between their work and their life outside of work. In addition, consider the results of ERC's Job Attributes Importance Survey. Work/Life Balance and Flexibility were rated within the top most important workplace characteristics that top performers look for in a job and that motivate their performance. However, it wasn't just the younger generations that made this statement. Almost 65% of the 515 top performers surveyed were over the age of 35 and nearly 20% were over the age of 50. Although most corporate policies may not support it, it appears that flexibility in the workplace may be more of a universal need for top performers across all generations. Many factors play into how paid leave policies are defined, and depending on industry, company size, and stage in the business cycle, different levels of coverage and personnel are required to maintain a productive and successful workplace. However, as workforce demographics and technology changes over the next decade, employers may need to take a closer look at the benefits of strict paid time off policies based on years of service and how it supports their attraction and retention of great employees.
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