Winding down from the job is important. In fact, statistics show that employees who take vacations are actually more productive workers. And the best way to wind down is getting out of town. Yet, 52 percent of employees say they don’t go out of town on vacation because of the cost. And it’s not just a problem for lower-level employees. According to the March 2014 Harris Interactive and Purchasing Power survey:
- 73 percent of those who earn less than $50,000 annually reported that cost was the reason they did not go away on vacation;
- 49 percent of workers whose salary is in the $50,001 to $74,999 range said they did not take an out-of-town vacation last year; and
- 50 percent of employees in the $75,000 to $99,999 salary range did not leave town for vacation.
Employees who don’t have cash on hand are using credit to pay for vacations. While this may be a good option for employees who qualify for prime credit and are able to make full payments, it is not the best choice for many consumers. A $2,000 vacation paid for with a credit card with 18 percent interest can take over ten years to pay off if the buyer only chooses to make the minimum payments.
By offering an employee purchase program as a payroll-deducted voluntary benefit, employers can make available a variety of vacation options (hotels, cruises, destination packages and all-inclusive resorts) that workers can responsibly acquire and have the cost deducted from their paycheck through manageable payments over 12 months.
Employees indicate that they are interested in having access to vacation packages in their employee purchase program. Thirty percent report that they would be likely or very likely, and 57 percent said they would be at least somewhat likely, to use an employee purchase program to buy cruises, hotel rooms and vacation stays if they were offered as a payroll-deducted voluntary benefit through their worksite.
As a broker, you are 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.