The U.S. Travel Association reports that in 2018, over half of all American employees had unutilized paid time off. The same survey discovered that there were over 768 million unused vacation days in that year.
Some employees are hesitant to use PTO. This is due to the possibility that human resources is unaware of how each department conducts itself both formally and socially. Peers and managers may feel overworked, and vacations can make this situation worse. Even when they need a break, some workers may feel pressure from society to give an excuse, such as a medical condition, for their absence.
PTO that goes unused costs businesses money because employee exhaustion reduces productivity and raises churn. Employees’ performance at work will increase and their mental health will be protected if PTO is encouraged.
How taking PTO benefits the business
We sometimes take for granted employee benefits, but how does paid time off assist the business? Why should a business pay workers to be idle?
Retention
The work-life balance of employees who have holidays and family time is better. Regular holiday skippers will demand increases and other benefits that you might not be able to afford. Family-oriented professionals will search for a less demanding workplace in order to attain their desired work/life balance when bonuses are not offered or when they cannot make up for lost time in an employee’s life.
Productivity
Everyone has seen productivity slipping after burnout or not getting enough sleep. Periodic breaks are necessary for workers to recharge and maintain motivation. For every additional 10 hours of vacation time an employee used, performance assessments improved by 8%, according to one study. It is more difficult for workers to think creatively and solve problems when they are in a constant grind. A worker or a leader may feel refreshed and have a fresh, possibly creative perspective on their work after taking time off away from the office.
Company culture
Many employees are concerned about being penalized if they use all of their paid vacation days. Particularly during peak season, some coworkers don’t like the additional work of covering for someone else while they’re away. Others fear that their vacation might be used against them when they are undergoing the employee review process. In the end, squandered PTO breeds unwarranted animosity and conflict within the workplace environment.
Save money
If your organization pays employees for unused PTO, you are paying them more than their annual income. Even if your state has “use it or lose it” laws for PTO, there may still be long-term costs associated with things like employee churn and decreasing health. The overall morale of the business may suffer as a result of the accumulated stress and annoyance.
Keep an eye out for these issues with solutions like HRM software with payroll.
Advice for motivating staff to use PTO
Making staff members feel free to use their PTO is different from merely “giving” them time off. Encouragement can assist in lowering the number of unused PTO.
Discuss the advantages of taking time off from work
Inform the workforce of the advantages of both short and long breaks. Talk about work-life balance at work and emphasize it as a core value in your organization. Employee engagement surveys can be used to monitor burnout and levels of personal motivation.
Make PTO and time off policy explicit in company communication
You must include explicit PTO policy in your employee handbook. Make it simple for employees to request time off, and ensure that managers try their utmost to comply with reasonable requests.
Establish a strict but realistic due date for PTO requests
To retain productivity, your company must provide managers ample time to fill in the gaps. It will be simpler to stay consistent if there is a clear deadline stated in the manual.
Prevent vacation shame
Make sure managers and team leaders talk positively about PTO. If a person has accumulated a specific amount of PTO, HR may remind them.
Provide a limited number of vacation rollovers
Having a set maximum rollover can motivate those diligent workers to use their surplus. Employees who have dependents may store up their PTO because they see it as a method to protect their income during Family Medical Leave.
Allow staff to completely unplug
Vacationers shouldn’t be viewed like distant workers who are always available. Make an effort to prepare the necessary solutions and materials in advance. Cross-training employees with learning management software to get ready for a colleague’s leave is a terrific way to strengthen the resilience of your system.
Management and HR set the bar high
You must make it obvious that everyone is encouraged to use their time off because ambitious employees could worry that doing so will harm their chances of receiving future promotions. Managers and team leaders can set a good example by alerting their team to impending events and ensuring that crucial tasks are completed. With a dedicated HR and payroll management solution, leaders can schedule, plan around, and fully enjoy their vacations, while keeping their teams in the know, and on task.