ROI of Dialing Down

ROI of Dialing Down

by Andrea Beth Levy, CPA

Chair, Arizona Society of CPAs

Chief Financial Officer, VOICE Amplified

How many times have you thought about scheduling vacation, but paused? How many times have you delayed scheduling vacation because you were concerned you may not achieve your bonus? Or someone will take your place? If your response is yes, you’re not alone.

According to a recent Inc. article, the average American takes only half of their earned vacation time. Of those who do take vacation, over 25% of employees work during their paid time off to avoid being overwhelmed when they return to the office.

Before the global pandemic, there were many years when I would take vacation for the eight days of Passover. Then 2020 happened, and even the idea seemed impossible. Financial forecasting and financial reporting requirements increased, and the business demands overshadow the idea of taking time off. Let’s explore the data-driven reasons to prioritize vacation and address strategies to ask for your well-deserved time off.

Health Benefits:

In a recent Forbes article, research has shown taking regularly scheduled vacations can help reduce the risk for a cluster of health issues including heart disease, stroke and type 2 diabetes. A separate article from Inc. notes health benefits last beyond the duration of the vacation including “fewer stress-related physical complaints such as headaches, backaches and heart irregularities, and [employees] still felt better five weeks later.” Taking vacation improves your overall health.

Compensation Impacts:

Next, let’s look at the correlation between taking your well-deserved vacation and achieving bonuses and raises. A recent HBR article found that people who took fewer than 10 vacation days per year had a 35% likelihood of receiving a raise or bonus in a three-year period; while people who took more than 10 of their vacation days had a 65% chance of receiving a raise or bonus.

Vacation Request Strategies:

Ready to book that vacation? One strategy is to develop a vacation schedule between three and 12 months in advance. Read your organization’s time off policy and ensure your request meets the policy requirements. Learn your department’s ebb and flow for busy season. If possible, schedule your vacation during a slower season of the year. In some cases, your time off request may not align with slower times; especially if you’re requesting time off for religious holidays or family events – it’s okay. With advanced notice, your organization will have an easier time supporting and accommodating your request. Next, request for your time off in writing. Ensure your request has been approved by your supervisor, prior to booking travel arrangements.

Most importantly, don’t let other team members intimidate you from asking for time off, because you deserve it. Consider asking an experienced colleague for career advice and how they’ve navigated time off requests.

Time away from our daily routine can provide clarity, creativity and a refreshed perspective. If planning a vacation sounds like extra work, consider finding an allinclusive vacation. Years ago, I found a spot on the beach that included surfboard rental, beach chairs and umbrellas. It was a wonderful place to unwind and enjoy beach weather without the stress of detailed planning. I look forward to hearing about your ROI impact of dialing down.

To see a full list of references and resources, visit www.ascpa.com/ takeyourvacation. l