Sabbatical Saga- People Management

Taking time off or unpaid leave is now looked upon as a relief variation to the ongoing layoffs

Key Learnings:

• Layoffs have become more of a norm today, and both the employers and employees are finding the entire process agonising


• Sabbaticals and programmes like unpaid leave offer benefits to both the employer and the employees


• The current economic slow turn has seen an increase in the number of employers opting to offer sabbaticals as opposed to layoffs

According to the website yoursabbatical. com, a sabbatical can be defined as "a planned job pause - paid or unpaid - whereby an individual takes time to rest, travel, volunteer, learn a new skill, or fulfill a lifelong dream before returning to work. Eligibility and benefits will also vary from company to company."

With so many layoffs happening, experts urge more and more organsiations to use sabbaticals as an easier alternative to 'distressing layoffs.'

Carol Sladek, a principal in Hewitt Associates' work/life consulting practice, says, "It's a longer-term solution than just saying, 'OK, today we're in trouble. We need to eliminate jobs.' Sabbatical is a good alternative- especially in an economic downturn."

Why sabbaticals?

Apart from doing away with layoffs, the benefits of offering sabbaticals are many. Employers look at it as one way of retaining their valued employees, re-engaging them, reduced turnover and no re-hiring costs. Despite the downturn, employers are optimistic of better days ahead. And keeping in mind this optimism, employers are in support of sabbaticals.

Sadly, many organisations are still unaware of all the benefits a sabbatical programme has in store. According to Hewitt Associates, 'only 4% of employers offer unpaid sabbaticals'. The primary reason for these dismal figures is the refusal to let go, whether it is leave or the employees. Also, many fear the loss of star performers. Will they ever return back or look for greener pastures?

To state, sabbaticals are an essential part of work/life balance and understandably helpful in the grim economy too. Hiring new set employees is financially precarious as the cost of replacing an employee is almost twice the salary. Given these restraints, employers are opting for unpaid time offs also known as sabbaticals. Sabbaticals initiate and promote 'cross training' amongst the rest of the employees. For instance, replacing the employee who has taken off implies that another employee assumes more responsibility and new learning of the job.

Sharon Klun, director of work/life initiative, Accenture, sabbaticals like the ones at her firm "could be a tool to help get companies through a bumpy economy."

Companies that offer sabbaticals

It is not surprising that most companies that offer sabbaticals have been featured on 'companies we want to work for', 'fortune 500 companies' and the 'best places to work for'.

Accenture has been one of the forerunners in espousing 'sabbaticals' as a great way to rejuvenate, reconnect and retain employees. With already a large number of work/life programmes in its kitty, Accenture came up with sabbaticals or unpaid leave after an employee survey revealed a massive appeal for the same. 'Future Leave' as the sabbatical programme is known at Accenture offers 'time off' that can extend up to three months and can be availed once in every three years.

The upshot of this programme is employees use this time off to learn new things, dedicate time to family, volunteer to help the needy or some even take a trip to the Himalayas. Rejuvenating is the key here. Since, the entire programme is unpaid for, the employees set aside some amount from their salaries every month. Once they have sufficient amount to fund their 'sabbatical' they take time off. The employees are enthusiastic about funding their sabbaticals. In addition to this, Accenture conducts 'personal engagement surveys' to comprehend how well these initiatives work in ensuring a fair and commendable existence.

At Deloitte, sabbaticals can be extended up to five years and during the unpaid leave period the employees have access to mentoring, small work projects and training at low costs. This is to ensure that the employees are not completely detached from the organisation. They believe that with these initiatives the "highly valued individuals, can re-enter the workforce and we would be at the top of their list to get them back, rather than leave the firm, get disconnected and not come back."

Sabbaticals, what it offers the employer and the employees'?

Let us list in short the benefits of a sabbatical to the organsiations:

• Talent pool: Since the high performing employees stay on the payroll, the organisation retains talent, knowledge, expertise and also cuts re-hiring costs.


• Attracts future talent: Organsiations with work/life balance initiatives are almost on every talented individual's wish list. Thus it helps in attracting potential talent.


• Fulfilled workforce: The entire workforce is happy with such initiatives and the cross training involved is a learning process for employees.


• Since it is seen as an alternate to layoffs employees, future employees and clients are happy. The repute of such organsiations are higher especially during tough times.


• An encouraging workplace attracts and retains talents, commands greater credibility amongst clients and stakeholders and is seen as a whiff of fresh air in the market.

Sabbaticals for the employees:

Helps them rediscover themselves , relearn and paves way for deeper introspection

With this kind of awareness and refreshment, employees are better equipped mentally and physically to take on challenges at work once they resume work.

With sabbaticals, the commitment and loyalty of the employees towards the organsiations are deepened

The benefits of a sabbatical are manifold, from new passion for work, better creativity, and most importantly higher commitment of the workforce. Taking a sabbatical needn't be treated with trepidation; it is just another way to learn.

Kathie Lingle, Director of a global human resources association sums up the response to pressurising work environments as "Smart organisations are looking at how to keep people whole and sane with them."

Sabbaticals maybe the answer!

Reference: TheManageMentor.

Where Employers Find Top Talent

Where can small businesses find good employees? Despite the recent flood of corporate layoffs, entrepreneurs often gripe that the best candidates don’t even know their firm exists, and finding them can be like looking for a needle in a haystack.

Traditional recruiting methods usually fail small companies. Broadcasting openings on job boards sometimes yields a flood of applicants who don’t qualify, and the number of responses can overwhelm small firms, says Dennis J. Ceru, a Babson College professor of entrepreneurship and a consultant to small and midsize companies. Paid recruiters can find good candidates, but at a high cost—typical fees are 20% or more of the position’s yearly salary. Ceru says the price may be worth it to fill a top position such as a chief financial officer but not for ordinary hires.

Instead, most small companies prefer to find candidates through referrals and networks of people they trust. To do this effectively, entrepreneurs need to articulate what they want in job applicants, says networking expert Diane Darling. “People don’t know what you need. They just can’t read your mind,” she says. She also suggests small business owners keep an open mind about who might refer good candidates. Sometimes unlikely social connections can refer good employees, although Darling cautions business owners always to check professional references, even when a trusted friend recommends someone.

Beyond reaching out to existing contacts, entrepreneurs can meet potential hires at networking events. Ceru says a casual meeting is a smart way to gauge whether the person is a good fit before starting the conventional application process. “Nothing beats eyeballing the candidate,” he says. “Rather than have 500 résumés and 10 appointments, why not go to two networking nights and have a beer, get to know them in social environment?” To cast a wider net, companies can look for job candidates at conferences and trade shows as well.

“A Better Pool”

Small businesses should enlist their current employees as recruiters, essentially selling friends and contacts on the benefits of working at their company, says Chris Collins, associate professor of human resource management at Cornell University’s school of Industrial & Labor Relations. “Take the price of that ad you were going to run and give it to the person who identifies the candidate who eventually gets hired,” he says. “You’ll probably get a better pool.”

One startup betting that companies will benefit from turning employees into recruiters is Jobvite. The two-year-old San Francisco Company offers Web-based software that allows hiring managers to give information about job openings to employees, who in turn can push it out to potential candidates in their professional and social networks. Hiring through employee referrals is more effective and less expensive than placing ads or using recruiters, according to Jobvite CEO Dan Finnigan, a former executive with Yahoo! (YHOO) Hot Jobs. “Everyone now has a Rolodex, and it’s all online and they’re all interconnected,” he says. Companies pay for the service based on the number of employees they have, with the price starting at about $500 a month for small firms. Even without paying for software, small businesses and their employees can use online networks to expand the reach of their hiring. LinkedIn reports that 45% of jobs posted on the network in the U.S. come from small and midsize companies, with an average of 22 responses per posting in November, up from 12 in January.

Small businesses can also find good candidates through universities. Owners and managers can show up at career fairs, ask campus career centers to refer candidates, and post to job boards and lists that go out to students, recent graduates, and alumni. Companies need to raise their profile on local campuses to get students’ attention, says Lindsey Pollak, an author and career expert who works with students and young professionals. “The students would love to work for you, they just don’t where to find you,” she says. Firms can get involved on campuses even before they need to hire by working with classes on consulting projects and hiring interns, says Erik Medina, director of graduate career services at Indiana University’s Kelley School of Business. “You’d be surprised, a little bit of good marketing, a little bit of good outreach can go a long way to distinguish yourself from the very large well-known firms that most students focus on,” he says. This year in particular is a good time to recruit on campuses, Pollak says, because many large firms won’t be hiring.

Wherever entrepreneurs look for new employees, they shouldn’t wait until they have to fill an opening. By constantly networking with an eye open for potential hires, owners and managers can keep a pool of candidates in mind for when they do want to bring someone on board.

Continually identifying good candidates is particularly important for small companies because the time and money they invest in filling each position compounds the cost of a mistake. Says Pollak: “It is so much more dangerous for them to make a bad hire because 1 out of 50 employees is so much more damaging than 1 out of 50,000.”

Ref: John Tozzi

The Benefits of Talent-Pool Succession Plans

In most organizations, HR professionals and executives readily admit they need to better understand the potential talent in their companies and do a better job of rewarding competent, loyal leaders. Succession planning, when integrated into the overall employee performance and talent management strategy, can provide organizations with valuable insight into their leadership pipelines. But a well-managed succession planning process should seek to not only prime leaders for the future, but reward them today as part of a bigger drive for retention.

There are many approaches to succession planning. One of the more common has been the org-chart replacement model in which employees are groomed for a specific position. Ideally, however, succession planning should focus on developing people rather than merely naming them as replacements.

With this premise at its core, the talent-pool approach to succession planning recently has emerged as a best practice that establishes a larger number of employees for promotion. This larger group is more likely to stay loyal and possess skills that are easily aligned with the organization's strategic plan.

In this model, high-potential candidates are placed in talent pools and then receive development -which may include specific types of training and education - in preparation for possible promotion. The organization commits to helping these individuals prepare to qualify for greater responsibilities, but ultimately, it is up to the individuals to perform well in their jobs while simultaneously equipping themselves to meet the new challenges of more senior positions.

The talent-pool approach to succession planning can be a great first step in rewarding loyal leaders, as they are not promised a specific position, but rather are recognized over time for their skills development, day-to-day performance and ongoing achievements. This approach provides a powerful tool set talent managers can use to recognize key leadership candidates and plan long-term bench strength.

Further, with talent pool-based succession planning, organizations are better able to get an ongoing snapshot of their workforces' potential and areas of retention risk while creating a larger pool of capable employees poised to take on leadership positions.

Capital District Physicians Health Plan (CDPHP) - an Albany-based, nonprofit, individual practice association HMO - introduced talent pool - based succession planning linked to its employee performance management to better address its strategic plans. With this approach, CDPHP can cultivate the necessary skills and competencies in high-potential employees by focusing on career and development planning.

The organization began the process by asking five questions to gauge which of their managers were at high risk to leave the organization and which were high potential. Of the organization's 100 managers, approximately 77 were rated as high potential. From there, three talent pools within management levels - entry, mid and executive - were identified. CDPHP is taking steps to reward the 77 high potentials by building a customized development plan for each manager.

As in the CDPHP example, by moving beyond the org-chart replacement methodology and working closely with high-potential leaders, talent managers can take development and succession planning to the next level. Organizations also are better equipped to manage retention risk and build employee loyalty.

For future leaders and the organizations that need them, opportunities that go beyond regular succession planning processes - such as highly individualized leadership training geared to their specific competencies or interests - will go a long way to build a robust, long-term talent pipeline.

Ref: Sean Conrad