An HR professional’s guide to sabbatical leave

Hot on the heels of the Great Resignation, workplaces are again battling yet another crisis – employee burnout.

In the tech industry, for instance, a study by Yerbo shows that two in five workers are a heartbeat away from burnout because of heavier workloads and poor work-life balance.[1]

Another study by Microsoft found that 48% of employees and 53% of managers were suffering from burnout.[2]

Burnout leads to resignations and quiet quitting, impacts productivity, and brings down the morale of your team as a whole. The problem isn’t insurmountable, though.

Sabbatical leaves are one approach to combating burnout. A robust sabbatical leave policy makes your workforce happier and healthier and helps you retain top talent. 

But how do you get started?

In this article, find out everything you need to know about sabbaticals, how to build a solid sabbatical leave policy, and the role that skills tests play in making this program a resounding success.

What is sabbatical leave?

Sabbatical leave is a benefit that allows eligible employees to take a career break to pursue personal goals or fulfill professional development opportunities without losing their employee status.

This non traditional benefit lets an employee go on hiatus to pursue personal projects, such as traveling, volunteering, or simply taking a rest from the rigors of work.

Alternatively, they can take a sabbatical to enroll in professional development courses to improve their skill set.

Though they’ve been long associated with careers in academia, sabbaticals as a benefit are gathering steam in other fields because employers are looking for ways to keep their employees happy, engaged, and productive.

This form of leave can either be paid or unpaid.

With paid sabbatical leave, employees continue to receive a percentage of their full salary. Typically, paid leave has more conditions attached to it than an unpaid one.

For instance, employees who go on a paid break may be required to have worked with the company for a certain duration.

These employees may also be required to undertake professional development initiatives which would benefit the company upon their return.

With an unpaid sabbatical, employees don’t receive a salary. Employees who take this form of leave have more choice in how they spend their time away from work.

Typically, employees can opt for an unpaid sabbatical to pursue personal projects and are not required to undertake professional development courses.

You can also offer a hybrid of the two, where employees take a paid sabbatical for a definite period, after which the leave becomes unpaid for the remainder of the duration.

How long is a sabbatical leave?

The length of an employee sabbatical varies across companies. Employers have discretion over its duration, including the conditions employees need to fulfill to qualify for this leave.

For instance, an employee who has been with the company for five years could qualify for a three-month sabbatical leave, while an employee who has worked for 10 years may be eligible for six months.

Some examples of companies’ sabbatical leave durations include:

• Adobe: Four weeks after five years; five weeks after 10 years [3]

• BrewDog: Four weeks after five years [4]

• Automattic: Three months after five years [5]

• Bank of America: Four to six weeks after 15 years of continuous service [6]

Sabbatical leave vs. leave of absence vs. career break

While a sabbatical leave, a leave of absence, and a career break all involve an employee taking a break from work, there are a few important differences between the three.

A sabbatical is a discretionary benefit typically granted to an employee who has met certain preconditions, such as lengthy service. This means not all employees are entitled to a sabbatical.

Leave of absence is a broader term that covers more personal reasons for taking time off from work, such as medical conditions or family obligations.

The period of this type of leave is flexible and largely determined by an employee’s unique needs. Typically, all employees may be eligible for a leave of absence and entitled to pay while away.

A career break, unlike a sabbatical, is taken by an employee without the need for approval by an employer. An employee may decide to take a career break by formally resigning from a position to rejuvenate or pursue personal projects.

An employee on a career break doesn’t receive a salary or any other benefits since they are not on the company’s payroll. 

They also determine when they wish to return to work, which involves making formal job applications to a company or industry of their choice.

Sabbatical leave vs. paid time off (holidays)

Unlike a sabbatical, paid time off from work is a statutory benefit, requiring companies to allow employees to take a break from work for several days each year.

The goal of paid time off is to enable employees to relax and engage in activities unrelated to work.

Paid time off is shorter than a sabbatical leave, annual, and entitled to all employees. 

Employees on paid time off are part of a company’s workforce and are entitled to salary and other benefits.

How does sabbatical leave work?

Employers have plenty of room in how they design and implement this benefit. 

Here are six steps that show you how sabbaticals typically work in organizations:

1. Request submission: The employee submits the sabbatical request in a prescribed manner. In the request, the employee states the purpose and length of the sabbatical. They could also suggest how their roles will be handled while they are away.

2. Request review: The next step involves a review of the request. You may approve, modify or reject the application, giving reasons for each decision.

3. Planning: If approved, you can then discuss pending projects and any other transitional concerns, such as how to fill the temporary gap.

4. Employee takes sabbatical: The employee then takes their sabbatical to undertake the activities outlined in the application and discussed with the employer.

5. Employee returns: At the end of the sabbatical, the employee returns to work and shares their newly acquired skills and experiences.

6. Reintegration: You can have a reintegration routine to enable returning employees to settle in quickly and smoothly. 

The advantages of sabbatical leave

Offering sabbatical leave as part of the employee incentive package provides several key advantages for both you and your employees.

Creates a positive employee experience

Sabbatical leave contributes to creating a positive employee experience, which is crucial for productivity and the bottom line.

A study published in the Harvard Business Review shows that improving employee experience increases revenue by more than 50%.^[7]

When you allow employees to take extended time off from work, you enable them to engage in personal or professional activities without additional performative pressure.

Reduces employee absenteeism

Employee absenteeism is a serious concern for most businesses.

Data from the Center for Disease Control shows absenteeism due to personal and family health problems cost US employers $225.8bn annually in productivity losses.

Offering sabbatical leave to your employees enables them to attend to pressing personal, health, or family concerns, reducingemployee absenteeism and attendant losses.

Increases employee retention

The Great Resignation may have slowed down, but this doesn’t mean employees aren’t looking elsewhere for better opportunities.

Even worse, some employees are in quiet quitting mode, meaning they are just getting along with the bare minimum.

A Gallup study reports that quiet quitters comprise at least half of the US workforce.

Sabbatical leaves provide your employees the chance to recharge their batteries, which ultimately leads to them staying with the company for longer upon their return.

Boosts employee creativity

The daily and relentless stress-inducing work cycles could be limiting your employees’ critical thinking abilities and innovativeness.

Allowing employees to take a sabbatical gives them the opportunity to break the cycle, rejuvenate, and engage in creative pursuits.

Then, once they’ve returned, you can tap into the new ideas and experiences they gained from their sabbatical leave to improve workflows and productivity.

Builds a better work-life balance

As work-life balance becomes increasingly trickier to achieve, offering sabbatical leave provides employees more time to dedicate to their families and personal interests.

Achieving a healthier work-life balance results in higher job satisfaction and productivity because employees are less distracted by external factors.

Enhances employees’ wellbeing

The wellbeing of your employees, which includes their physical, emotional, and mental health, is crucial to the overall health of a company. 

In recent years, employee wellbeing has become an increasingly significant concern, forcing companies to put strategies in place to cushion their employees.

One study by the American Psychological Association reports the US economy loses more than $500bn annually due to workplace stress.^[8]

Offering sabbaticals enables employees to disconnect from the daily work demands that take a toll on their physical and mental health, letting them reset and refresh.

Provides opportunities for skills development

Undertaking professional development courses can be a problem for employees because of unrelenting performance targets and cycles.

Sabbaticals allow employees to concentrate on improving their skills without worrying about other work-related issues.

These employees can use their new skills to take on additional responsibilities, improve the workplace, and achieve higher productivity.

The disadvantages of sabbatical leave

Sabbatical leave has many advantages; however, if not properly handled, it can lead to companies facing difficulties and drawbacks. 

The disadvantages you should be aware of as you begin implementing a sabbatical leave policy include:

Causes employees to feel disconnected when they return 

When employees take lengthy sabbaticals, they may feel disconnected from the company, colleagues, and ongoing projects.

Without proper reintegration, this employee might also lose track of workflows, especially if some changes were introduced while they were away.

This is where good workplace communication comes in. It’s essential to communicate with the employee to keep them updated on important changes, support them upon return, and smoothly re-integrate them into existing workflows.

Leads to administrative difficulties

Offering sabbaticals poses administrative challenges to the company and can affect work performance if not handled well.

These challenges involve how to redistribute duties, to whom, and how that may impact reporting lines.

There is also the question of whether the company gets a replacement from within or recruits a temporary candidate to fill the gap.

Proper talent planning and skills testing can help you understand the competencies of your employees and ease the administrative difficulties that sabbaticals might present.

Creates cost concerns

Sabbaticals can increase company costs because of the need to hire and train someone to cover for the employee on leave.

Redistributing work to existing employees may also mean paying them more as compensation for the additional responsibilities.

Offering unpaid sabbatical leave provides some headroom to hire or redistribute workloads without unduly creating a hole in the company’s coffers.

Places extra burden on the team

Redistributing the duties of the employee on sabbatical to others can solve one problem while creating new ones.

Heavier workloads for your employees might lead to stress, burnout, and low productivity.

Advance planning and offering extra support to employees providing cover helps make the transition manageable for the duration of the sabbatical, preventing the risk of churn and burn.

How to develop a successful sabbatical leave policy: 10 proven tips

Developing an effective sabbatical policy enables your business to reap the immense benefits of sabbaticals and minimize the downsides.

A well-defined sabbatical policy clears gray areas by defining employer-employee obligations.

Here are 10 best practices to guide you in developing a watertight sabbatical policy for your business.

1. Define sabbatical leave

If sabbatical leave is a new benefit within your company, the first step is to clearly define what it entails.

The goal here is to educate your employees by distinguishing a sabbatical from other forms of leave of absence, such as PTO, sick leave, or a career break.

Include a headline policy statement that explains the rationale for this benefit.

Next, outline the type of sabbatical the company offers, such as paid, unpaid, or a mix of the two, so your employees can make informed choices.

It’s also important to outline the duration of the leave, including how frequently an employee can claim a sabbatical break.

2. Define eligibility requirements

Because a sabbatical is a discretionary benefit, it’s essential to state clearly which employees are eligible for this benefit.

Outline the conditions employees need to fulfill, which can entail:

1. An employee’s length of service

2. Accepted sabbatical leave reasons

3. Employee track performance

4. Availability of a competent cover

Sabbaticals may also need to coincide with project cycles to minimize project delays, which can also inform eligibility requirements.

3. Discuss employee sabbatical activities

Explain to employees that they can use the sabbatical break to undertake various activities, both professional and personal.

It’s important for your sabbatical policy to wade into this area and outline what the company expects of an employee on sabbatical.

Define whether employees are required to touch base with the workspace once in a while or undertake a relevant professional development course.

Typically, companies require employees on paid sabbaticals to use some of their time away to gain skills that will benefit the business when they return.

4. Provide clear application guidelines

Make sure all employees are clear on the steps to apply for sabbatical leave. For instance, are they required to write a letter/email, fill out a form, or use a web-based application system?

Whichever format of application you choose, indicate important information they need to include, such as:

• Sabbatical leave reasons

• Planned sabbatical activities

• Supporting documentation, such as a handover report of pending projects

• First and last day of the sabbatical, if approved

It’s also crucial to define the notice period employees need to give when applying for a sabbatical to allow for advance planning.

5. Lay out the evaluation criteria

After receiving the application, outline the approval process for the sabbatical request. In this clause, identify the following issues:

1. The person receiving the request

2. How the request is evaluated

3. Reasons for approval/disapproval

4. The timeframe of the entire evaluation process

5. How the final decision is communicated to the employee

6. The remedial course of action in case of disapproval

Clearly laying out the evaluation process in your policy enhances transparency and consistency.

6. Define sabbatical pay and benefits

Your sabbatical policy needs to state how the company treats compensation and other benefits entitled to employees, keeping in mind that they are still on the company’s payroll.

If offering a paid sabbatical, outline whether employees are to receive their full pay or a percentage of the pre-sabbatical salary.

In a hybrid approach, define when a sabbatical converts from paid to unpaid.

For both paid and unpaid sabbaticals, consider whether employees will enjoy routine benefits and perks, such as medical coverage, pension contributions, company car, or gadgets.

Medical insurance is a significant concern to look out for because some employees may travel abroad, meaning their insurance coverage could require some modifications.

7. Develop a backfilling plan

A successful sabbatical benefit depends to a large extent on how you plan to cover for the departing employee.

It’s essential to develop a plan for how duties carried out by the employee going on extended break will be divided.

There are two backfilling options here: hiring temporary cover from the job market or looking internally for skilled employees.

While an off-the-street hire can bring new ideas and energy into the role, they may require more training and time to get ready.

An internal hire requires less training and is a fantastic choice to promote internal mobility and stress test your succession planning. Handling extra roles might, however, lead to heavier workloads, stress, burnout, costly mistakes, and low productivity.

This is where a skills-based hiring strategy comes into play. It lets you focus on the capabilities a new candidate brings to a role or better understand the existing skills within your team, making it much easier to manage this backfilling.

For example, if you’ve already conducted a skills-gap analysis and know that the individual requesting sabbatical leave has skills that can’t be replaced with your existing workforce, you know that you need to look to an external candidate to fill the gap.

Ultimately, your final choice depends on factors such as budget, how significant the role is to workflows, and the length of the sabbatical period.

8. Include a post-sabbatical employment clause

Offering sabbatical plans are a significant step toward improving employee experience, wellbeing, and creativity.

However, you want your company to derive value from this package. One way of getting value is to have a post-sabbatical employment agreement.

Consider a policy clause requiring employees who claim sabbaticals to work for a specified time after returning from their period of leave.

This clause aims to prevent your employees from turning a sabbatical into a career break or using their newly-acquired skills in another organization.

9. Map out reintegration strategies

Returning to work after a long time away can be daunting for your employees, so expecting them to be ready from day one might be a big ask.

Outlining how a returning employee will be reintegrated into workflows enables them to readjust to the new environment.

Here are some reintegration ideas that facilitate this process for your employee:

• Send a warm and personalized message to welcome the employee back

• Work with the employee to create a plan for their return

• Schedule a meeting to catch up on what has happened during their absence 

• Reintroduce the employee to the team and encourage them to reconnect with colleagues and share their experiences.

• Keep an eye on their workload to avoid overwhelming them upon their return.

• Regularly check in with them to gather feedback on the reintegration process

When the employee finally settles in, plan how they can share their sabbatical experience and acquired skills with the team.

10. Review and update the policy regularly

Your sabbatical policy is a living document and isn’t cast in stone. Review and update the clauses as you go to ensure the policy is fit for purpose.

Get feedback from employees on how to improve the sabbatical program and benchmark with other companies to ensure your policy is ahead of the curve.

As you tinker with the policy, remember to communicate any changes so that you are on the same page with the people it’s intended for: your employees.

4 examples of companies benefiting from sabbatical leave

Many companies recognize the importance of employee wellbeing and work-life balance by offering sabbatical leave. 

The best way to prove the benefits of sabbatical leave policies is to see them in action. 

Here are a few notable companies known for their employee sabbatical benefit.

Deloitte

Deloitte provides paid and unpaid sabbaticals to employees who have clocked at least three years with the company.

The paid sabbatical lasts between three and six months, with employees required to undertake personal or professional development activities or volunteer in a community.

Employees on Deloitte’s paid sabbatical receive 40% of their pre-sabbatical compensation.

Deloitte’s sabbatical program allows employees to support key community initiatives and refreshes them to enhance their effectiveness, creativity, and productivity. 

HubSpot

HubSpot provides a four-week paid sabbatical to workers who have five years of employment.

Eligible employees can use their sabbatical to pursue personal projects such as learning a new language or playing a musical instrument.

They can also take their families with them on vacations and honeymoons.

HubSpot’s sabbatical program aims to appreciate its longest-serving employees.

Intertech

Intertech is among the earliest adopters of sabbatical leaves. 

Employees who have seven years of service are eligible for a three-month paid sabbatical.

Intertech’s sabbatical aims to enhance work-life balance by allowing employees to spend time with their families and pursue personal initiatives unrelated to work.

Buffer

Buffer introduced sabbatical leave in 2019 to combat burnout and set up the company for long-term success.

Recently, the company announced that it will pay out employees who exit the company voluntarily and who have unclaimed sabbaticals.

A Buffer spokesperson says paying for unused sabbaticals is a way of honoring an employee who couldn’t take the sabbatical at the five-year mark because of personal or other reasons.

The policy also protects the company from disruptions as a result of an employee claiming their sabbatical with the intention not to return.

Get sabbatical leave right with skills testing

Sabbaticals are a more viable option than losing your valuable human resources to stress and burnout. If properly handled, offering sabbatical leave to your deserving employees increases their stay in the company.

Most important is how to ensure you get the right replacement and avoid hiring mistakes that make sabbaticals unsustainable. 

Using skills tests, like the Leadership and People Management test, empowers you to make the right selection and survive the aftershocks caused by a sabbatical’s temporary exit.

To learn more about the other benefits of skills-based hiring for your business, read this article.

Sources

1. “The State of Burnout in Tech – 2022 Edition”. (2022). Yerbo. Retrieved June 22, 2023. https://f.hubspotusercontent30.net/hubfs/7677235/The%20State%20of%20Burnout%20in%20Tech%20-%202022%20Edition.pdf

2. “Hybrid Work Is Just Work: Are We Doing It Wrong?”. (2022). Microsoft. Retrieved June 23, 2023. https://www.microsoft.com/en-us/worklab/work-trend-index/hybrid-work-is-just-work?wt.mc_id=AID_M365Worklab_Corp_HQ_Charter

3. “Sabbatical”. Adobe. Retrieved June 22, 2023. https://benefits.adobe.com/us/time-off/sabbatical

4. “Brewdog and the Living Wage”. (November 26, 2019). Brewdog. Retrieved June 22, 2023. https://www.brewdog.com/blog/brewdog-and-the-living-wage

5. “Benefits”. Automattic. Retrieved June 22, 2023.  https://automattic.com/benefits/

6. “Bank of America Employee Benefits”. Bank of America. Retrieved June 22, 2023. https://about.bankofamerica.com/en/working-here/employee-benefits 

7. Gautier, Kate, et al. (March 22, 2022). “Research: How Employee Experience Impacts Your Bottom Line’”. Harvard Business Review. Retrieved June 22, 2023. https://hbr.org/2022/03/research-how-employee-experience-impacts-your-bottom-line

8. “Stress in America: Paying With Our Health”. (2015). American Psychological Association. Retrieved June 23, 2023. https://www.apa.org/news/press/releases/stress/2014/stress-report.pdf