Oxford Economics recently completed a survey entitled “An Assessment of Paid Time Off in the U.S.” and the study reveals many interesting statistics and how they affect the nation’s travel/vacation industry. The research focuses exclusively on vacation and personal days.
Oxford Economics is one of the world’s leading providers of economic analysis, forecasts and consulting advice.
The findings of this study relate heavily to the overall operation of all travel/vacation organizations, including Sundance Vacations, a wholesale vacation company headquartered in Wilkes-Barre, Pennsylvania.
A portion of the assessment’s key findings follow.
Sadly, each year Americans are leaving millions of days of earned leave on the table. More specifically, too much paid time off goes unused. More than 42 percent of employees in the U.S. workforce with paid time off finished 2013 without using their time-off entitlement. On average, employees used 84 percent of earned paid time off in 2013 and left a total of 429 million unused days off on the backburner.
So, how does this affect companies like Sundance Vacations? Converting the unused leave to travel would have a significant impact on the travel/vacation industry. Successful conversion into travel would have generated an additional 581 million days of travel and an additional $67 billion in travel spending if used for travel in 2013. Including indirect benefits, the total economic impact would include a potential 1.2 million jobs and an additional $52 billion in earned income.
The private sector accounts for 87 percent of jobs in the U.S. economy, while state, local and federal government jobs make up the balance. However, because private-sector workers tend to earn less paid paid time off they account for only 75 percent of unused paid time off days.
According to the study, the benefits of time off are widely recognized and include more dedicated, productive, satisfied and healthy employees. However, a heavy workload, as well as management and peer pressure prevent some employees from taking all earned paid time off.
Unused days of paid time off directly affect the bottom line of companies like Sundance Vacations. When employees neglect to take off the time they have coming, it adversely affects the travel/vacation industry. For the most part, time off usually equates to vacations for the individual or families. In essence, when an employee chooses not to use his or her time off, the travel/vacation industry will feel the pinch which includes lost revenue due to people not booking vacations.
The Oxford Economics’ study features an extensive on-line survey of 971 employees with a focus on how paid time of is perceived in the United States. Seven hundred of the 971 surveyed received paid time off as part of their benefits’ package. For adequate public-sector representation, the sample included 126 public-sector and 576 private -sector employees with paid time off.
Across the board, respondents highlight the benefits of taking time off and how these benefits continue after returning to work. The impact of paid time off for rank-and-file employees revealed that 67 percent reported feeling refreshed upon return to work, 32 percent felt more focused and 40 percent experienced reduced stress. When employees use paid time off, companies like Sundance Vacations realize these benefits with a rejuvenated work force.
The study stipulates that the benefits of paid time off are wide-ranging ad include improved productivity, better performance and more dedicated employees. Additionally, employees identify feeling less stressed and refreshed upon returning to work, have a better attitude toward work and also enjoy improved personal and social lives as a result of taking time off. These benefits are recognized by senior-level management and rank-and-file employees.
“Sundance Vacations fully realizes the positive benefits associated with paid time off and we make it a required part of the benefits package we offer to our employees,” said Tina Dowd, co-founder of Sundance Vacations.
About Oxford Economics
Oxford Economics was founded in 1981 as a commercial venture with Oxford University’s business college to provide economic forecasting and modelling to UK companies and financial institutions expanding abroad. Since then, they have become one of the world’s foremost independent global advisory firms, providing reports, forecasts and analytical tools to 200 countries, 100 industrial sectors and over 3,000 cities. Their best-of-class global economic and industry models and analytical tools give us an unparalleled ability to forecast external market trends and assess their economic, social and business impact.
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