When the Cost of Vacations Stops Many Employees from Going Out-of-Town, Employers Can Help by Offering Voluntary Benefits

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May 17, 2016, 04:32 ET

ATLANTA, May 17, 2016 /PRNewswire/ -- Getting away on vacation allows for recharging both physically and mentally, yet many working Americans aren't able to take an out-of-town vacation, primarily due to the cost involved, according to a recent Harris Poll on behalf of Purchasing Power.¹ Rested employees are more productive employees, so employers who provide benefits that offer affordable ways to purchase vacations will improve employee morale and their company's bottom line at the same time.

Conducted in March 2016, the survey showed that 26 percent of full-time employees didn't go out of town on their vacation last year.² Failing to get away comes at a price, in terms of productivity, morale and health. While staycations may be the only option for some employees, having complete time away and being totally disconnected from the office can be the healthiest step to take.

Of those who did not go out-of-town on vacation last year, 68 percent reported that the reason was cost-related. Cost was not just a factor for those with lower salaries, but was a consideration for employees in salary ranges under $100,000:³

45 percent of those who earn less than $50,000 annually reported that cost was the primary reason they did not go away on vacation;
25 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 due to cost; and
16 percent of employees in the $75,000 to $99,999 salary range said cost was the reason they did not leave town for vacation.

"Employers can encourage their employees to take a vacation getaway by offering an employee purchase program that includes travel options as a voluntary benefit," explained Elizabeth Halkos, Purchasing Power's Chief Revenue Officer. "Giving employees the opportunity to payroll deduct budget-friendly payments provides an affordable way for employees to take an out of town vacation and offers an alternative to high-interest credit cards," Halkos added.

For example, a $2,000 vacation paid for with a credit card at an 18 percent interest rate will take almost ten years to pay off if the buyer only chooses to make the minimum payment of 4 percent of the balance. Using credit to pay for vacation may be a good option for employees who qualify for prime credit and are able to make full payments, but usually it is not the best choice for many consumers who are only able to pay off their minimum balance.

"By offering an employee purchase program as a voluntary benefit, employers can make available a variety of vacation options (hotels, cruises, destination resorts and all-inclusive resorts) that appeal to workers across all demographics and have the cost deducted from their paycheck through manageable payments over 12 months," Halkos added.

Download Purchasing Power's latest infographic on this topic, "Vacations: A Luxury or A Necessity?" for more information.

About Purchasing Power, LLC
Purchasing Power is one of the fastest-growing voluntary benefit companies in the industry, offering a leading employee purchase program for consumer products and services as well as providing financial tools and resources to improve employees' financial wellness. Purchasing Power is available to 7.8 million people through large companies – including Fortune 100s – associations and government agencies. Headquartered in Atlanta, Purchasing Power is 'Powering People to a Better Life™' through its employee purchase program, financial literacy efforts and charitable contributions. Purchasing Power is a Rockbridge Growth Equity, LLC Company. For more information, visit www.PurchasingPower.com.

"A Better Way to Buy" and "Powering People to a Better Life" are trademarks, and "Purchasing Power" is a registered trademark, of Purchasing Power, LLC.

^{1, 2, 3}Harris Poll on behalf of Purchasing Power among 2,023 U.S. adults ages 18 and older, March 11-15, 2016.

Media Contact:
Juliann Kaiser, 770.643.0615
[email protected]

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SOURCE Purchasing Power, LLC