Career breaks can keep everyone happy

Sunday Business Post - Recruitment Feature - Dec 7 2008

Career breaks are an increasingly popular way to cut payroll costs while keeping ties with valuable employees, writes Dermot Corrigan.

Career breaks are on the table for many companies looking to move staff off the payroll until the economy rights itself.

Permanent TSB (PTSB) recently announced a scheme to incentivise staff to take a two or three-year career break or voluntary sabbatical. Employee reactions to the scheme have been broadly positive, according to a spokesperson for the company.

The financial services company offered employees up to €20,000 to take a two-year break and up to €35,000 to take three years off. The total sum was offered as an upfront payment to a maximum level of half the employee's annual salary.

"It has been received extremely positively," said the spokesperson. "Staff see it as innovative, and its voluntary nature is attractive. We have received feedback over the last couple of years that staff would appreciate more flexible work arrangements; they see this as an option which meets this need."

While not releasing any figures on the take-up to date of the scheme, the spokeswoman said the company was happy with the number of applications thus far.

"We have received plenty of applications from all across the organisation," she said. "There is a mix of all employees applying ranging from three to over 20 years service, male and female, both Irish and non-nationals – reflecting our employee base."

"There is also a good balance between the two and three year option, depending on what people are planning to do during the career break."

Innovative approach
Janet Wallace, HR solutions consultant with Russell Brennan Keane, said that the PTSB offer provided an innovative way to managing staff costs in a downturn.

"It is a good way for companies to reduce their payroll costs over a certain period, while ensuring you can get your skills back for when you need them in two or three years time," said Wallace.

"You are not losing the investment you put into them from a recruitment and training point of view, and you keep the knowledge they have built up about your company. It is a lovely option to be able to give if you are an employer."

While those who take up the PTSB scheme are guaranteed a role in the company, similar to their current job, upon their return, Wallace said not all companies could offer similar promises in the present economic climate.

"That is a risk that individuals considering a career break have to take,” she said. “However, in the current climate there are other people who are not sure if their job is going to be there in two months time, never mind two years. It depends on the employee and the situation they are in. Some people might have a partner who would be able to keep them financially secure."

Wallace said candidates who did decide to take a career break, did so for a variety of reasons depending on their own circumstances.

"Over the past few years traveling has been a massive one for people, and especially younger staff might pick up on this,” she said. “Other people might want to go back and do further studies. Some other people might have family commitments, they might have young children and would like to take a couple of years out, knowing they had the security of a permanent job to go back to."

Volunteering Derek Bambrick, business manager with recruitment firm Abrivia, said employers generally looked more favourably on staff who use their time out of the company to develop new skills or experiences.

"Employers often give career breaks to people who they value, but if they offer a career break they like to see the individuals putting something else on the table when they return,” said Bambrick. “If it is well planned and constructive, a career break can be advantageous to any employer."

Bambrick said Abrivia had recently placed a candidate in a senior financial services position on his return from a two-year career break.

"This gentleman was an accountant and had six years experience post qualification,” said Bambrick. “He and his wife, who is a pharmacist, were just married. He decided he wanted to do some voluntary work, so he joined up with VSO (an international development charity) and worked in an international development role in Africa. He went away with numbers in his head, but he came back with very strong project management skills. He had the skills of a sales manager, and had the life experience to go into a country management type role."

Upon his return, Abrivia was able to place the candidate with his old company - and in a more senior role.

"When he came back he had to renegotiate another contract,” he said. “He was so well thought of that they nearly created a job for him. As he had a whole new list of talents, and a new skillset, his career was given a boost."

In general, however, it is not typical for employers to keep positions open for staff who leave the company for a year or more, Bambrick said.

"It depends on the relationship you have with your employer,” he said. “If you come back and reapply for a job, you will be in a good position with the new skills and experiences that you have picked up."

Secure new role
Bambrick said those who take a career break, without any guarantee from their current employer, could find that new employers are interested.

"Somebody might want to do voluntary work, and another person might want to go to university or something like that,” he said. “But as long as they can show value to the job market, and attain new skills and keep up with the existing skills they have, they will do very well."

Bambrick said more companies were introducing career breaks as part of outplacement programmes and redundancy packages.

"Some people choose to take a career break and do something else for a while,” he said. “We can do psychometric testing and give general advice on their options."

Case study: Tina Kelly - a 'better employee' after her one-year career break

Tina Kelly, a consultant with recruitment firm Sigmar, recently returned to Ireland following a six month career break in Australia and New Zealand.

"I had spent a number of years in recruitment and had seen some very busy times in the market, and I felt that I needed a bit of a break,” said Kelly. “Some personal changes had also happened in my life at the time. I sat down and talked with my manager, she was very receptive to it, and I decided that I could take a year out and then come back after the year. I was told my job would be here when I came back."

"I took a year out from Sigmar, and I went travelling to Australia and New Zealand, and then I spent some time at home here," Kelly said. "I had a great six months away, and then I was back in Dublin for six months."

Kelly said her experience differed significantly from the typical post-university gap-year trip.

"I was a little bit older than most people who take a gap year," she said. "I was in my early 30s so I had some money behind me. I was able to do all the backpacking things, but I was also able to go for meals, get my hair done, and still maintain a good lifestyle."

"I really enjoyed it, I met all kinds of different people, saw things I would not normally see, and I came back much more interested in my work and refreshed in how I looked at things. I was very motivated and I was happier in myself, and therefore a better employee."

A growing number of candidates in Ireland have career breaks on their CVs, said Kelly.

"Quite, often I would come across candidates who have taken a career break," she said. “It seems to be becoming a more common choice for people of all age groups, and all types of professions and careers."

"You get a real mix of people taking career breaks for all kinds of different reasons. Sometimes it is for family reasons such as someone being sick, other times they want to travel. People often study while they were off, and voluntary work would also certainly come into it."

"It depends on the individual. Some people come back and have decided that they do not want to return to their old job, and decide to try something different," Kelly said. "Sometimes a change has occurred while they were away, and they now want to try something new. But a lot of people would look to get back into the same kind of role as before."

Kelly said that employers were not generally worried about gaps in a candidates work history on a CV, once the candidate could explain how they used the time beneficially.

"I do not think career breaks harm people professionally,” she said. “I have never come across an employer who would have a problem with a candidate who has taken a career break.”