There has been a growing awareness on sabbatical leave, especially after the pandemic. Find out how it works and how your own company could benefit
Sabbaticals are commonly associated with academic professions, with Harvard being the first to offer sabbatical leave in 1880. Over the years, sabbatical leave has crossed over to other industries, including tech (Adobe), finance (Wells Fargo), and even fast-food (McDonald’s)!
Still, not a lot of companies offer sabbatical leave as part of their benefits package. According to the Society for Human Resource Management, only 11% of its members offer unpaid sabbatical leave, while 5% offer paid sabbaticals.
Perhaps it's time for employers to consider sabbatical leave as part of employees’ entitlements. In this article, we’ll look at sabbatical leave, its benefits, and some examples of companies with sabbatical programs. We’ll also address some common concerns and look at the main points in creating a sabbatical policy.
What is sabbatical leave?
Sabbatical leave is extended time off from work offered to employees who meet performance or tenure benchmarks. The length of a sabbatical can run from a few months to two years.
The word “sabbatical” comes from the word “Sabbath,” a Jewish tradition of taking rest on the seventh day. This is also associated with the ancient Hebrew practice of not tilling the land, allowing it to rest for a full year every seven years.
Employees who take sabbatical leave are guaranteed a job when they return to work. Most countries do not have laws on sabbatical leave, so it’s up to HR teams to draft clear guidelines to manage expectations.
A figure known for going on sabbaticals is designer Stefan Sagmeister. He closes his shop in New York once every seven years. He takes the year off to travel and explore other creative projects. Watch his TED Talk to find out more:
One question to ask HR leaders and managers: are you giving employees enough time off? Read the article to find out more.
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Paid vs. unpaid sabbaticals
It’s up to employers to decide whether to offer sabbaticals, and whether they’re paid or unpaid.
Paid sabbaticals mean employees get their partial or full salary while they’re away.
Some companies offer a set period for paid sabbaticals. For example, they can offer a month of paid sabbatical for employees who have been with the company for five years.
Sabbatical leave reasons
Employers define how and why sabbatical leave is to be taken. Some reasons for taking sabbatical leave can include:
- completing a course that’s related to the employee’s role
- conducting research
- writing a paper or a book
Some companies have no restrictions at all. Employees can travel, pursue other hobbies and passions, or just stay at home with family. In most cases, these would fall under unpaid leave.
Sabbatical leave eligibility
Again, it is up to the employers to decide who is entitled to sabbatical leave. Most companies extend this to those who have reached milestones within the company. Software company Autodesk, for example, offers six weeks of paid sabbatical leave for every four years of employment.
Case studies: companies with sabbatical leave programs
Here are organizations around the world that offer sabbatical leave to its staff:
- Fast-food giant McDonald’s was the first corporation in the US to offer paid sabbatical leave in 1977. Today, McDonald’s offers eight weeks paid sabbatical after 10 years of service.
- Fintech company PayPal extends paid sabbatical leave to employees (full- and part-time) who have been with the company five years. Other conditions may apply.
- Software company Adobe offers four weeks sabbatical for the first five years of service. Their employee portal offers details of when and how much time staff qualify for sabbatical.
- The Unilever office in the Netherlands offers unpaid sabbatical (which they call unpaid career break) for various reasons including childcare, adoption, or pursuit of other interests. Staff qualify after two years of employment.
- The Commonwealth Bank of Australia (CommBank) allows different types of leave, including career breaks and purchased annual leave.
- Outdoor retailer REI gives employees a four-week paid sabbatical on their 15th anniversary. Staff get sabbaticals every five years after that.
- Graphic design company Canva offers a one-month paid sabbatical to employees marking their 5th and 10th year. Canva calls this their Epic Experience:
Curious to know what people leaders around the world think about sabbatical leave? Get in touch with one of them – check out our Global Best in HR Special Report.
What is the benefit of sabbatical leave?
There are many reasons to have a sabbatical leave policy for your organisation. Here are some of them:
Prevents burnout
In the 2023 Work in America survey published by the American Psychological Association (APA), 57% of workers said that they were experiencing burnout. Only 35% of these workers said that their employers encouraged breaks.
Based on another study from HR platform UKG, 75% of frontline workers worldwide feel burnt out.
Work stress and burnout lead to physical and mental issues:
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Mention of the word "burnout" on Glassdoor has also reached an all-time high since 2016.
The solution to burnout is sabbatical leave. Extended breaks from work allow employees to relax, look after themselves, and pursue other interests. They return to work reinvigorated, ready to share fresh ideas and new ways of working with their team.
Promotes employee retention
According to the Mercer US and Canada Turnover Surveys, 47% of respondents had a hard time finding replacements or retaining employees for certain roles. The same report identifies burnout as the top reason employees leave.
We’ve listed sabbaticals as one of the most creative and effective ways to keep employees. Read the article for more strategies.
Promotes employee loyalty
Employees stay with companies that make them feel valued, and having a sabbatical policy in place is one way of doing that. They have something to look forward to when they reach their 5-year or 10-year milestone, depending on what the company’s policy is.
Identifies potential leaders
When senior staff go on sabbatical leave, it’s the opportunity for junior staff to shine. Companies can create opportunities for staff to step up, take on leadership roles, or take charge of special projects.
A robust sabbatical leave program paves the way for succession planning, reducing dependence on any one leader or figure within the organisation.
Read this article for other insights on how to make succession planning effective.
Attracts and retains talent
According to a report from HR platform Employment Hero, only 28% of UK companies offer unpaid sabbatical leave, while 16% offer paid breaks.
That same report states that 47% of employees find sabbatical leave the most exciting non-financial work benefit. Companies that offer sabbatical leave show that they value employees’ health and well-being, giving them time and space for individual pursuits.
Addressing common concerns about sabbatical leave
After going over the benefits, let’s go over the most common worries that employers have about sabbatical leave:
Employees might not come back
This is always a possibility; research has shown that 20% of people who go on sabbatical leave don’t return to work. Being away would have given them time to reflect on their place in the organization. If they decide to quit, they feel it’s no longer a good fit.
Once the employee hands in their notice, arrange an exit interview to find out why they’re leaving. Did their priorities change? Are they leaving to pursue a life passion? Or is the work unsustainable? If work is the problem, dig deeper – find out what you can do to change things in the organisation.
Problems with staffing/resources
Losing a colleague who’s going on sabbatical leave, especially if they’re in a leadership role, raises concerns around workloads, staffing, and resources. Should employers hire temp staff to cover the role, or reallocate tasks among existing team members?
To address these issues, planning for sabbatical leave should start six to 12 months in advance. This allows HR, the employee and their team to:
- distribute workloads
- align projects and goals
- train and prepare staff for transition
All these should be outlined in a sabbatical leave policy. Have everything in writing to manage the expectations of everyone involved.
Inequalities in the workplace
Sabbatical leave, especially if unpaid, is not for everyone. It’s only accessible to those who can afford to take time off:
- those in leadership roles
- those who are paid well
- those in roles that are not highly specialized
Having a sabbatical leave policy exposes these inequities at work, and this is what The Sabbatical Project hopes to address. The Sabbatical Project is headed by DJ DiDonna, a senior lecturer at Harvard Business School and former fintech entrepreneur.
DiDonna knows a thing or two about sabbaticals. He went on his own extended break in 2017, spending six weeks doing a Buddhist pilgrimage in Japan. That experience led him to do further research on sabbaticals, then The Sabbatical Project was born.
Under The Sabbatical Project, he published a study based on interviews with 50 individuals and how sabbaticals changed their lives.
How to implement a sabbatical leave policy
In a 2023 podcast, DiDonna outlined three key points to help companies set up their own sabbatical policy:
1. Compensation
“I think the first thing that they need to do is offer some sort of compensation,” DiDonna said. "Whether it’s basic stipends, people retaining health insurance, and allowing people to fully disconnect by shifting their responsibilities off to someone else on the team.”
2. Duration
A clear sabbatical leave policy should clearly state the length of leave allowed. For DiDonna, longer is better. “So, make sure that it’s measured in months, not weeks.
“I get a lot of inbound from companies setting up policies that are month long or five weeks,” he added. “I don’t want to discourage that because I think any time off is better than none, but that’s a European vacation. I think it needs to be longer, so work up to it perhaps.”
3. Disconnection
The third point – and perhaps the most important – is to completely disconnect. This is where the magic happens, especially in the workplace. “You’re practicing turnover and handing over responsibilities and figuring out what people are doing and redistributing them. Turnover is not something to be avoided, it’s the way things are.
“The more repetition you have of switching people in and out, the less surprised you’re going to be when someone quits or goes on parental leave and that sort of thing,” DiDonna said.
Investing in sabbatical leave for long-term success
Sabbatical leave has become a rare and valuable employee benefit. It is effective both as recruitment and retention tactics.
These extended leave periods allow employees to rest, recharge, and pursue other interests. On the employer’s side, having a sabbatical leave policy paves the way for succession planning by identifying potential leaders.
While there are costs involved, the question is whether employers are willing to spend this amount to attract and retain the best talent. In the long run, having a sabbatical leave policy results in happy, productive, and loyal employees. Isn’t that worth investing in?
Are you considering a sabbatical leave policy for your organisation? Let us know in the comments