With Monday being Memorial Day, I – like many others – had a three day weekend. Consequently, I had some time to catch up with old friends and family.
It was a much-needed hiatus, and it got me thinking…
What is a long weekend worth?
If you could have an extra two weeks of vacation would you give up 4-5% of your annual pay? What would you trade for five more floating holidays a year? Ten? How much money would you leave on the table for a one month sabbatical (on top of vacation) every few years?
As people get older / have families / become more financially secure / etc., time off generally grows in importance.
Despite this reality, however, time off is something that most organizations don’t quantify to their employee populations. These companies often up-sell time off as a perquisite in the interview process, but it’s relatively rare for a company to try to assign a dollar value to such a perk.
…This is mostly because the value of time off varies depending on1. I personally place very little value on vacation time. I’ll relax when I retire.who the person is that’s receiving it. 1 As such, most organizations don’t try to evaluate how much time off is worth to employees (and in the process, they’re probably leaving something on the table).
With that said, outside of just using a straight valuation of “time off = salary” (at either an hourly or weekly/semi-annual rate depending on exemption status) I can’t really think of a strong methodology for objectively valuating time off across an entire employee population.