The power of vacations is unlimited. Taking time off isn't onlygood for employees' work-life balance and morale, but it alsoimproves their job performance and productivity, which benefitsemployers' bottom lines.

Problem is, employees aren't taking time off like they should.And, primarily because of cost, they aren't getting away when theydo take time off.

Brokers are now in a position to help employers with a solutionby offering an employee purchase program as a voluntary benefitthat includes travel options. Using this payroll-deduction approachis an affordable way for employees to get away on vacationutilizing a budget-friendly installment payment plan that is asimpler, more convenient alternative to credit cards or otherfinancing options. After all, while vacation memories can last foryears, the payments shouldn't.

A vacation-deprived workforce

According to Expedia's 2013 Vacation Deprivation Study, 59percent of Americans feel vacation-deprived. The study also reportsthat last year Americans collectively failed to take more than 500million available days of vacation.

They aren't using all of their vacation days and when they do,many aren't actually getting away from it all. There are variousreasons that vacation days go unused—failure to plan, financialworry, forgetfulness, or the feeling that one is required at work.However, the irony is that rested employees are more productiveemployees, so taking regular vacations may well help the companymore than failing to do so.

Consequently, Americans seem to treat vacations as a luxuryrather than a necessity.

Responses to a recent nationwide Harris Poll conducted forPurchasing Power revealed that employees who don't feel they haveappropriate work-life balance are concerned about their health,work performance, spending time with loved ones and being able to'unplug' from the office. Instead of enjoying the comforts thatemployment provides, many employees feel that they have tosacrifice them.

The power of vacation

Using vacation days pays off for both employees and employers.Employees who take most or all of their vacation time each yearperform at higher levels, are more productive and are moresatisfied in their jobs than those who do not, according to asurvey of HR professionals by the Society for Human ResourceManagement.

A vital element to having a quality work-life balance is beingable to unwind while away from the office— not just after workhours—but being able to take a “true” vacation. For the employeeswho are taking some paid time off, many actually are financiallyunable to leave town to take a vacation. In addition to drivinghigher employee performance and productivity, fully utilizingvacation time boosts organizational morale, contributes to employeewellness and results in higher employee retention. Thus,encouraging employees to use their vacation days plays a vital rolein contributing to the success of the entire organization.

The real cost of vacation

A large percentage of U.S. workers live paycheck to paycheck.For those employees who don't have cash, they generally resort tousing credit cards to pay for these vacations. While this may be agood option for employees who qualify for prime credit (44 percentof Americans, according to a recent Time article) and areable to make full payments, it's not the best choice for manyconsumers.

That's because 56 percent of Americans have carried unpaidbalances in the last 12 months, which exponentially increases thetotal cost, something not generally factored in when making theinitial vacation purchase. For example, consider a $2,000 vacationthat's paid for on a credit card with an 18 percent interest rate.If the employee gets caught in the “minimum payment” trap, it cantake more than 10 years to pay off that vacation purchase.

Proving a solution

Today's brokers aren't just selling products. The new brokerrole focuses more on assisting employers with their HR objectivesthan it does on simply presenting a variety of product offeringsfor the employee benefits plan. And it includes educating employerson the status of their employees' financial well-being, its effecton the company, and the various ways—including through voluntarybenefits—that employers can help employees improve their financialwellness.

Brokers can offer their clients a smart financing alternativefor their employees' trips that can be added to the companyvoluntary benefits plan—an employee purchase program that includesvacation packages. An employer-sponsored employee purchase programis an affordable way for employees to take a vacation because itprovides a disciplined payment plan through payroll deduction thatis a less expensive alternative to some credit cards or otherfinancing options.

Through this voluntary benefit, employers can make available avariety of vacation options such as hotels, cruises, destinationpackages and all-inclusive resorts that workers can responsiblyacquire and have the cost deducted from their paycheck throughmanageable payments over 12 months.

Employees indicate that they are interested in having access tosuch a program. In the recent Harris Poll/Purchasing Power survey,30 percent of employees said they would be likely or very likely,and 57 percent said they would be at least somewhat likely, to usean employee purchase program to buy cruises, hotel rooms andvacation stays if they were offered as a payroll-deducted voluntarybenefit through their worksite.

Taking a vacation—and disconnecting from work—can be one of thehealthiest steps employees can take in achieving work-life balance.Employees who take most or all of their vacation time each yearperform better, are more productive and more satisfied with theirjobs than those who do not.

Brokers who bring this new voluntary benefit option to theattention of their clients are showing that they are doing morethan putting new products on the table. They are bringing productsthat offer solutions to today's HR challenges and the company'sbottom line.