- Employees fail to maximize this benefit. A large percentage of American workers don’t take all their earned and available paid time off — and that can hurt them and their employers.
- The problem is complex. Among the reasons for this trend are employee job and career security concerns, combined with PTO plan designs and strategies that do not clearly incentivize taking time off.
- A concerted effort to investigate and alleviate. Leaders and total rewards professionals may need to root out the factors driving PTO non-use in their organization, and adjust programs and communications accordingly to mitigate potential productivity, morale and turnover issues.
A high percentage of American workers don’t use all their earned and available paid time off (PTO), which can potentially lead to negative outcomes for both employers and employees.
While PTO “banks” traditionally are available for workers to withdraw full or partial days for vacations, doctor’s appointments, illnesses or just about any needed absence, recent surveys show the extent of workers’ “don’t use it, then lose it” habits. For instance:
- Most surveyed workers in a May 2024 Harris Poll said they were satisfied with their employer’s PTO and vacation policies — and yet, 3 in 4 said they did not use the maximum PTO permitted.
- A 2023 Pew Research Center survey found 46% of surveyed workers took less time off than was available to them.
- A 2023 survey from Eagle Hill Consulting found more than one-third of participating workers had not taken a vacation in over a year. Also, 27% of surveyed workers said they checked work email and messages even when they did take time off.
Unspoken and Implied, Yet Very Real
Marta Turba, WorldatWork’s vice president of content strategy, explained American workers often struggle with taking time off for three main reasons:
- They lack adequate support and encouragement in this area from their employers;
- They exhibit a compelling need for job and career security, which often leads to an “always on” mindset, and
- Their organization’s PTO plan designs do not incentivize taking time off.
“While a PTO policy may offer generous benefits, the subtleties of company culture — daily workflows and unspoken expectations — often signal whether taking leave is truly acceptable and how it might impact one’s career,” she said.
Turba added that although few organizations overtly discourage time off, there may be implicit messages that deter employees. For instance, some of those workers may fear returning to overwhelming workloads that pile up during their absence.
Holistic Problems Call for Holistic Solutions
According to Tim Osiecki, a director at Harris Research, the inability to take adequate time off has significant costs for both employees and organizations. For employees, he said, continuous work without breaks leads to burnout, decreased productivity and increased mistakes.
“This chronic stress also can potentially contribute to mental health problems,” Osiecki said, adding that for organizations, these issues result in higher absenteeism rates and reduced job satisfaction/morale, ultimately affecting overall performance and loyalty.
As a result, he suggested encouraging “digital detox” initiatives, whereby employees are supported to completely disconnect from work emails and calls during their time off.
He stated, “Integrating vacation time with broader wellness programs that emphasize mental health and work-life balance, along with openly recognizing employees who take their vacation time, can foster a healthier workplace culture that values and promotes employee well-being through regular, meaningful breaks.”
Additional Action Steps to Consider
Melissa Jezior, Eagle Hill Consulting’s president and CEO, said when an organization’s culture discourages time off, this may foster employee resentment and an overall toxic work environment, resulting in higher employee turnover and morale problems.
Given these potential outcomes, Jezior offered some steps employers can consider to encourage workers to rest and recharge:
- Lead by example. Managers and leaders can prioritize taking time off themselves, so when employees see leaders taking breaks, they feel more comfortable doing the same.
- Offer flexible work arrangements. Provide options like flexible hours, compressed workweeks or remote work. Such schedule and workplace flexibility may allow employees to better balance work and personal commitments, making it easier for them to take time off when needed.
- Educate employees on the importance of time off. Regularly communicate that time off can generate benefits such as reduced stress, increased productivity and improved mental health. Provide resources to workers on how to plan for — and make the most of — their time off.
- Provide adequate work coverage. Cross-train employees so work operations can continue smoothly while someone is out. This can reduce fears of work “pile-up” and/or that their time off negatively impacted productivity metrics.
- Foster a culture of overall employee well-being. Be creative, consistent and comprehensive in this regard. This includes but goes beyond PTO. For example, some employers support “no meeting” or “remote only” Fridays during the summer months to mitigate burnout and stress.
Insights and Analytics Can Help You Make Progress
WorldatWork’s Turba agreed it’s critical to clearly communicate the importance of taking earned time off.
“Ensure that everyone in leadership — from the CEO to frontline leaders, including HR — conveys that the organization values their well-being and sees time off as essential for a thriving professional and personal life,” she said.
Turba also said it’s important to address any organizational matters that may prevent PTO usage. For example, conduct focus groups with employees to obtain direct insights about barriers to taking time off.
Finally, Turba said it’s important to objectively and regularly review PTO usage trends and plan design to identify improvement areas. Analytics exercises may prove helpful in this regard and allow you to model alternatives to determine the impact of plan design features (such as forfeiture, caps, carryover rules) vs. usage trends.
“Consider implementing stricter carryover limits or ‘use it or lose it’ policies that require PTO to be used within the year it is accrued,” she said. “Ensure that these policies balance flexibility with encouraging more frequent use of PTO, without compromising the program’s ability to meet diverse employee needs.”
Editor’s Note: Additional Content
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