Holiday Stipends: What's Behind the Buzz?
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What you need to know?
What do you think about an employer-sponsored vacation? The concept of “free vacation” is a fairly new concept in the benefits scene. It's a concept where companies pay for their employees' holidays (usually in the form of stipends ranging from £1,500 to £2,000 per year).
This particular achievement has its roots in the travel industry, where companies like Airbnb pioneered it, and other companies like Evernote and Calendly have followed suit.
What others say about it?
From the conversations we're having, it's clear that "free vacation" is just one part of a much larger conversation about benefits and how they play into employer branding.
Michael König, lecturer at the Institute for Strategy and Innovation at the Vienna University of Economics and Business, says: "The sharp increase in the cost of living and rising inflation rates worldwide make vacation a real luxury. Companies that offer paid vacation address this directly... Employers can do this use intelligently in your employer branding strategy."
So the question is: What fits your company's strategy? Who is the ideal candidate you want to attract or the ideal employee you want to retain? Your benefits must be holistic and clear. This starts with getting a feel for what motivates your employees.
What this means for you?
We recommend taking a close look at your service package. Take stock and ask:
- Do these benefits match the type of applicants we most want to attract?
- Do these benefits have a known impact on employee retention?
- How do individual services impact the overall employee experience?
- Are your services consistent with your DEI efforts and accessible to everyone?
Consider tracking usage of the various benefits you currently offer (e.g. development budgets). Talk to your top performers about what would motivate them, and even consider introducing a program that you can expand across the company (e.g. a sabbatical program for tenured employees). It might be time to recalibrate your benefits package.
As we explore the rising trend of holiday stipends, IceHrm encourages businesses to reimagine their benefits strategy. Understanding that a well-crafted benefits package contributes to employer branding and employee satisfaction, IceHrm empowers HR professionals to align offerings with organizational values, fostering a workplace culture that attracts and retains top talent.
