Use It or Lose It: How Leaders Can Build a Pro-Time-Off Culture

As the end of the year approaches, many employees find themselves scrambling to use up their remaining paid time off (PTO). One friend, for instance, has six days left to take between December 12 and January 1—or else he will lose them entirely. Stories like his are all too familiar, highlighting a much bigger issue: employees hesitate to take PTO throughout the year. Some feel guilty about leaving work behind, while others fear falling behind. This trend needs to change. PTO is not just a nice-to-have benefit; it’s a cornerstone of employee well-being and productivity.

The Importance of PTO

Paid time off is one of the most cherished employee benefits. According to the 2024 SHRM Employee Benefits Survey, 81% of HR leaders rank paid leave benefits as “very important” or “extremely important,” making it the second most valued benefit after health care. Similarly, a Pew Research Center survey found that workers value PTO more than employer-funded health insurance.

Despite its value, a staggering number of employees leave PTO unused. In 2023, 62% of workers did not take all their vacation time, leaving a third of it unused. Nationwide, this amounts to $312 billion in lost compensation annually, translating to an average of $2,953 in lost benefits for individual employees every year. These trends have nearly doubled in just four years, signaling a growing disconnect between the availability of PTO and its actual use.

Why Are Employees Avoiding PTO?

Several factors contribute to this underutilization of paid time off:

• Remote Work Challenges: 63% of employees say taking time off while working remotely is more challenging, where boundaries between work and home life often blur.
• Employer Pressure: 55% feel discouraged from taking PTO, even though it’s a part of their compensation package.
• Financial Barriers: 54% cite travel expenses as a significant deterrent, especially during rising costs.

Additionally, younger employees and those working remotely are less likely to take vacation days than their counterparts. Even when employees do take PTO, many fail to disconnect entirely. A Harris Poll revealed that 60% of workers struggle to unplug, with 86% checking emails and 56% taking work-related calls during their supposed time off. Nearly half of employees report feeling guilty about taking PTO in the first place.

The Costs of Skipping PTO

Avoiding PTO comes at a steep price—not just for employees but for organizations as well. Employees who do not take time off are more likely to experience burnout, stress, and mental health challenges such as anxiety and depression. According to mental health professionals, “constant connectivity” during PTO prevents employees from recharging, leading to long-term harm.

Unused PTO is a double-edged sword for employers. It diminishes the return on investment for one of the most significant and expensive benefits offered. When employees forego vacation time, their well-being suffers, negatively impacting morale, productivity, and retention.

Building a Culture That Encourages PTO

So, how can organizations address this growing issue? By fostering a pro-time-off culture. Here are six actionable strategies:

1. Normalize Taking PTO: Leadership should set an example by taking their own PTO and fully disconnecting. When leaders model this behavior, employees feel empowered to follow suit.
2. Educate on Benefits: Highlight the mental health and productivity benefits of taking time off. Show employees how PTO can improve their overall well-being.
3. Set Remote Work Boundaries: Establish clear policies that help remote workers disconnect without guilt or fear of falling behind.
4. Adjust PTO Policies: To prevent end-of-year rushes, consider allowing PTO to roll over or offering incentives for using it throughout the year.
5. Track PTO Usage: Regularly review how much PTO employees are using and identify trends to refine your approach.
6. Celebrate Disconnecting: Recognize employees who take their PTO and return refreshed. Sharing success stories can inspire others to follow their example.

A Win-Win for Everyone

Paid time off is not just a benefit—it’s a critical investment in employee well-being and organizational health. Leaders can boost morale, reduce burnout, and improve productivity by creating a culture that encourages employees to take their well-deserved time off. As we close out the year, let’s take this opportunity to rethink how we approach PTO and ensure it becomes a win-win for everyone.

Elevate your organization by fostering a culture of wellness. Contact Life Force Wellness LLC today by visiting www.lifeforcewellness.com or email [email protected] to learn how we can help you make a meaningful impact.