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

Published in: on August 13, 2013 at 4:43 am  Leave a Comment  
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Are You Really on Vacation?

Entrepreneurs need to take vacations as we have previously discussed (Entrepreneurs and Vacations).

However, are you as an Entrepreneur really on vacation when you take the time off to go somewhere? Most often, Entrepreneurs are so tied up in their businesses that they take their laptops and phones with them on vacation. They feel the need to check email messages and receive and make phone calls related to work. This is no vacation in the real sense.

Entrepreneurs should build an organization that is self-functioning in the short term and can survive without the Entrepreneur/CEO. Key management should be able to run day to day operations and make important decisions without having to check in with the Entreprenuer. When on vacation, Entreprenurs should only allow a single manager to contact them if there is a dire emergency.

Build a strong organization. Take a real vacation. Do the Right Things!

Ravi Patel

www.patelCFOservices.com