Sabbaticals from the U.S. Corporate Perspective

Sabbaticals from the U.S. Corporate Perspective

1.           Types

Sabbaticals used to be the sole preserve of academics. But nowadays many private firms are considering sabbaticals as an effective recruitment and retention tool in order to address workers´ life-balance and health choices. In the US sabbaticals, or short leaves of absence; generally running four to eight weeks, can be granted to full-time, long-term employees by their employers.

By the way of financing, the modern-day version of the sabbaticals come in two distinct types: the employee-funded leave plan, or a simply leave of absence; another one is the employer-funded plan, or paid-time off. The self-funded leaves are commonly found in the public sector, they are longer and funded in advance by taking a reduced salary. For example, during the first years, the employees receive 80 percent of their salaries, and the balance is set aside. In the fifth year (sabbatical) year, they are repaid the salary amounts that were set-aside during the first four years. On the other hand, many private companies that see the virtues of sabbaticals prefer to give eligible employees six to eight weeks of extra vacation with pay after a set number of years of service. This time off may allow workers to reconnect with family, take courses or even pursue a hobby.

The first Silicon Valley company that offers sabbaticals to all its workers was Intel, the global high-tech company based in Santa Clara, who started the policy in 1969 and continues essentially unchanged today. Every seven years, each full-time, domestic Intel employees qualifies for eight weeks of leave with full pay and benefits- in addition to regular vacations. Sabbaticals are popular benefits in the computer industry because the high-tech business is fast growing and there are always new things for the employees to learn. There is tremendous pressure for people working very long hours, so the basic idea of sabbaticals for these high-tech firms is to prevent burnout.

2.           Qualifications

Eligibility for sabbaticals is usually based on years of service, but productivity or individual results may occasionally be considered. Normally a company tenure of four years or longer but less than ten years are required. The following table has shown that common practice for sabbatical eligibility in the leading high-tech companies.

Leave Leaders: Firms that Offer Sabbaticals

 

Source: Judith Harkham Semas, 1997. "Taking off from the Hi-tech Grind". HRMagazine (September): 128.

3.           Benefits

Companies who apply the sabbatical policy have claimed it as a great way to boost productivity by giving stressed workers the opportunity to recharge their batteries and giving the employees who remain an opportunity for new challenges and growth. Others regard it as a great way to show they care about employee needs thus becomes valuable for retention as well as recruiting. As a result, sabbaticals are becoming more and more common type of employee benefit. At Microsoft, after seven years of services, qualifying employees are eligible for an award of eight weeks. Employees can take advantage of the award by choosing either of the following benefits (Judith Harkham Semas, 1997. Page 126):

ø           Time off with pay

ø           An assignment to another part of the corporation

ø           A cash payment in addition to their pay

Almost all sabbatical programs reported have been well received and feedback has been very good. Employees expressed high level of satisfaction from the sabbaticals because they can spend extended period with their family, form totally different perspective on work, take the opportunity to learn new stuff, and develop their long-term career planning.

4.           Training

Some of the sabbatical programs are designed to provide long-term enhancements and learning opportunities for employees. The employees can choose to take courses or take assignments at another part of the company so that they can make full use of the sabbatical opportunity to enhance their work-related knowledge and skills and achieve their long-term career goals. While Seare left Du Pont as a salesperson for plastic sheeting product, she returned to a job she feels is a better fit- working on a personal safety and rape prevention program that Du Pont has developed and is selling to other companies. Seare says her experience at the Daily Food Bank taught her new skills she can apply to her job. " I am more flexible, aggressive and have developed my creativity." (HR Reporter, June 5, 1991, page 8)

5.           Motivations

Although sabbaticals are fast growing, particularly in the high-tech arena (e.g. Silicon Valley), cost of the program and fear of reduced productivity can be big issues for firms that don´t have the sabbatical policies. High cost may be the most important factor for the employers. A day off with pay is perhaps one of the most expensive benefits a company can offer. On the employee side, some of them have complained that the difficulty of preparing for their sabbaticals and the pile of work they face after returning, some even worry about being replaced or having their jobs downgraded while they are out on sabbatical. But pro-sabbaticals said these problems can be eliminated. For the cost problem, experts suggest allowing the employee to defer a percentage income each year that will be paid during the sabbatical. This Sabbatical Leave Plan also tax attractive because the employee will only be taxed when he or she actually receives the deferred salary during the leave. Also the employee can earn interest on the full amount of the salary payments that have been set aside by the employer. For the Sabbaticals-related work stress and job degradation worries, a team approach is recommended. Sabbaticals can be successful only if there is a willingness to distribute work, and then to hand back to employees when they return. A team approach allows people to go on leave while ensuring customer interests are protected. For the employers, they will only pay the tax for the reduced salary and sabbaticals also help the plan the emplyees'' leaves well in advance.