Why should my company offer a vacation donation program?

For employers, these programs offer a number of advantages, including enhancing morale and company loyalty, increasing productivity, reducing absenteeism and turnover, and reducing pressure on future scheduling of time off.

Employees enjoy increased flexibility in times of crisis, enhanced relationships with co-workers, financial assistance, and benefit flexibility.

Some issues that employers may wish to consider before implementing a vacation donation program include:

• Should the program be voluntary or mandatory?

• What are the criteria for eligibility?

• Can employees convert vacation time to cash?

• Should employees be required to use up all vacation time concurrently with FMLA leave or before providing any other additional unpaid leave?

• Will there be a cap on the number of hours that can be requested?

• Who will authorize the use of donated leave time?

Small employers. Vacation buying and selling can create difficulties for small employers in terms of covering employee absences and administrative burdens. A highly seasonal business with a majority of employees that would place a high value on such a benefit might want to consider including it in a cafeteria plan with the benefit only available during the low season.