BenefitsPro.com is carrying a by-lined article by our Chief Revenue Officer Elizabeth Halkos points out how brokers can improve productivity and employee work-life balance by providing a voluntary benefit that enables workers to more easily afford a vacation.
Statistics show that taking time off not only is good for employees’ work-life balance and morale, it also improves their job performance and productivity, which benefits employers’ bottom line. Problem is, employees aren’t taking time off like they should and, primarily because of cost, they aren’t getting away when they do take time off.
Brokers are now in a position to help employers with a solution – Purchasing Power Vacation Packages. Using this payroll-deduction approach is an affordable way for employees to get away on vacation utilizing a budget-friendly installment payment plan that is a simpler, more convenient alternative to credit cards or other financing options.
The article cites results of a Harris Poll for Purchasing Power on employee vacation practices:
- 28 percent of employees reported they did not go out of town on their vacation last year;
- 52 percent of those workers who did not go out of town on their vacation last year stated that the reason was cost-related. Interestingly, cost was a factor for employees in all salary ranges.
A large percentage of U.S. workers live paycheck to paycheck, unfortunately. For those employees who don’t have cash, they generally resort to using credit cards to pay for these vacations. While this may be a good option for employees who qualify for prime credit (44% of Americans according to a recent Time article) and are able to make full payments, it is not the best choice for many consumers. That’s because 56 percent of Americans have carried unpaid balances in the last 12 months, which exponentially increases the total cost, something not generally factored in when making the initial vacation purchase. For example, consider a $2,000 vacation paid for on a credit card with an 18 percent interest rate. If the employee gets caught in the “minimum payment