Encouraging employee vacations can prove beneficial to your business. Most importantly, it is easier for you and your accountants to detect fraud if an employee is away for an extended period of time. Typically, you trust your employees, and you may have a high opinion of them since they appear to be working hard. By forcing employees to take at least a week away from the office, they can’t hide the fraud. There may also be innocent errors that a fresh set of eyes can detect; either you or another employee can handle this review. There are other benefits to requiring your employees to take vacations, even if there is no fraud going on. Your employees are going to feel revitalized and motivated when they come back to work. In addition, this vacation time is also an opportunity to cross-train another employee. This can help motivate your team, since it is an opportunity for them to learn another skill. It also prevents you from relying too much on one employee. If one person leaves, you can have a replacement ready without skipping a beat. It seems counter-intuitive to want your employees to take vacations, but the future of your business depends on it.
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.