Vacations as a Benefit and More

Summer is generally for vacations. Most companies offer vacation as a paid benefit to employees. But, is there more to it?

Vacations are offered at almost all companies. Employees use this time to spend leisure or social time with their families. Employees can hopefully recharge their batteries to come back to work rejuvenated.

Do you require vacations to be mandatory or can employees use the unutilized vacation time as extra cash compensation? If it is the latter, you might be doing a disservice to your employees. Vacations are meant to be used as a benefit for relaxation and should be used as such.

There is another important internal control feature in requiring mandatory vacations. It allows companies to uncover any irregular activities, if there are any, during the absence of  employees. Entrepreneurs should keep in mind this internal control aspect.

Also, it allows companies to test whether their business processes are people or system dependent. If people dependent, things might come to a standstill when certain individuals are on vacation. This is definitely not a desirable situation. Having employees take vacations reveals such weaknesses and allows companies to fix the system and train others to serve as backup performers.

So consider vacations as more than just an employee benefit!

Ravi Patel

www.patelCFOservices.com

Advertisements
Published in: on August 13, 2013 at 4:43 am  Leave a Comment  
Tags:

The URI to TrackBack this entry is: https://bloggerravi.wordpress.com/2013/08/13/vacations-as-a-benefit-and-more/trackback/

RSS feed for comments on this post.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: