Sabbaticals: A Strategic Tool for Improving Bottom Line Results

by Rita Foley

Corporations that offer sabbaticals don’t do it as a nicety. They do it because it’s good for employees, for the company, and for customers.

Laurent Hamels -- Fotolia.com

Most of us have worked since we were in our late teens or early 20s, so of course it’s natural to crave some time off. Here are six reasons more companies are implementing sabbatical programs:

Employees return rejuvenated: Close to 100 percent of sabbatical takers return to their companies with higher levels of engagement, loyalty, motivation and appreciation for their employers. Research shows a high percentage of promotion and improved performance levels among sabbatical takers. But companies that provided sabbaticals only by exception, rather than as policy, had more sabbatical takers who did not return to work or remain employed with the company.

Clients will allow it: Some companies, especially professional firms, say the intense one-on-one relationship with clients prohibits sabatticals. The reality is many such firms offer sabbaticals. One law firm partner told me that sabbaticals actually help neutralize the ego factor. “It’s not healthy for the firm if a client gets too dependent on just one person.”

It can be cost efficient: This is another one that is especially hard for lawyers or other firms who share profits. But if everyone takes a sabbatical, then, at one time or another, each will cover for another and the profit washes out. Some companies offer only partial pay for sabbatical takers, but even for those who offer full pay, a sabbatical program shouldn’t cost you. Maybe at a clerical level you might have to hire a temp, but with careful preparation and juggling, work can usually be covered by existing employees.

Implementation is essential: It’s all in the preparation. The companies I spoke to have a very simple and effective system. Upon approaching the sabbatical year, an employee writes a memo to their boss requesting the specific time off. They then meet and outline coverage.

Stagger sabbaticals: In a formal program, one of the main concerns is how to start the implementation with tenured employees who have passed the five- or seven-year mark -- some many times. Most companies simply stagger leaves over a three-year period.

The bottom line: Our nation will lose its innovation and creativity if we don’t invest in our most important asset: our employees. We tune up our PCs, our cars, and our home heaters. Why not encourage people to give their minds and spirits a tune-up? Time and time again, sabbatical takers return as more interested and engaged employees, more loyal and more creative. Sabbaticals broaden a company by bringing in new ideas.

Loyalty alone should justify implementing a program. The cost of hiring and training a new employee can be 1.5 times a departing worker’s salary. Sharon Allen, Deloitte’s chairwoman, said her firm’s sabbaticals and flexibility policies had saved more than $45 million a year by reducing turnover.

A sabbatical program is a wonderful tool for checking an organization’s depth and breadth. Managers must proactively focus on developing their staff, complete succession planning, and provide training and exposure to teams. Sabbaticals promote teamwork and better decision-making.


Twenty per cent of the Fortune 100 Best Companies to Work For offer fully paid sabbaticals. If you want to be a workplace of choice while still adding to the bottom line and the company’s future, consider implementing a sabbatical program.

Rita Foley is an adviser with Crenshaw Associates and is a co-author of Reboot Your Life: Energize Your Career and Life by Taking a Break.

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