Voluntary Furloughs Sometimes Worth the Cost

By Amy Lester, NEWS 9

With everyone so cautious about losing their jobs, companies are racing to find creative ways to keep people on the payroll.

Many companies have mandated furloughs, but now workers seem willing to do their part by "volunteering" to take time off unpaid.

Lynette Seymour loves managing this university bookstore, but when the budget got slashed, the school asked employees campus wide to consider something called a 'voluntary furlough.'

Seymour agreed to take off five days of her choice. More than 350 employees signed up, a move that'll save the school more than $500,000.

Ten percent of businesses questioned in a new survey say they're asking workers for voluntary furloughs. It's happening in all kinds of industries.

Seymour's university lets workers decide the amount of time. Some companies ask for a week off while others offer a few furlough Fridays. Workplace psychologist Marie McIntyre says before employees volunteer, they should make sure they can afford it.

"If you're having trouble making your mortgage payment or putting food on the table, that's not the time you want a pay cut," McIntyre said.

It's also important to consider how saying no will affect office politics.

"You'll see the CEO taking time off," McIntyre said. "Most employees will be signing up for furloughs and if you don't, then you risk looking like a selfish Grinch who's just concerned with enhancing your own paycheck."

On the other hand, if top executives believe they're too critical to operations to be absent, employees don't want to come across as expendable. If employees want or think it's necessary to volunteer, workplace attorney Garry Mathiasson says it's critical to have a discussion with their employer.

Employers need to know how the furlough will impact pay, health insurance, seniority, vacation time and retirement benefits.

"If the total number of weeks or hours lost is great enough, it could adversely affect your accumulation of time on a 401(K) plan or on a pension plan," Matthiasson said.

Seymour's not worried about any impact on her benefits. She's happy to do her part to cut costs during tight times.

"We all volunteer in other ways in our lives," Seymour said. "This is just another way."

McIntyre said if employees do take a voluntary furlough, use the time wisely. They may want to start a new job search, because oftentimes when a company offers voluntary furloughs...layoffs are not far behind.