Sabbatical Leave in the Private Sector: An Employee Benefit That Can Be a Cost Saver

Sabbatical leave is a benefit that is commonly associated with higher education but is rarely found in the private sector. The benefits that a sabbatical provides a professor, the opportunity to “recharge and refresh” and return to their responsibilities reinvigorated, would also apply to businesses offering this benefit. In light of the recent COVID disruption, employee claims of “burn-out” and the subsequent resignations of many workers, employee retention is a serious issue for many firms. Search and hiring costs are significant. This study examines the benefits to the firm of offering sabbaticals to their employees. It also provides a framework for businesses to compare search and hiring costs with the costs of a sabbatical program. The numerical example provided demonstrates that avoiding the costs associated with a search could fund an 8-week sabbatical for an employee.