A few years back, a number of trendy companies started giving their employees unlimited paid time off. Members of the media and internet onlookers scoffed, suggesting no one would ever show up to work again. In the end, though, no one could’ve predicted what would actually happen: Employees were often less likely to take time off when their PTO was unlimited. With no structure in place to say otherwise, they felt a silent pressure to just keep on working.
At companies where a certain number of PTO days are offered, many employees don’t take all the days they’re owed. They often feel guilty, like they’re always supposed to be working, or they may be saving up days for an emergency. When sick days are often limited or nonexistent, too, employees are hesitant to use their days. Companies should, however, encourage their employees to take all their paid days off — here’s a look at why:
1. Attract New Employees
Money talks. Specifically, money talks to picky job applicants saddled with a tedious, antiquated application process. Numerous articles have come out citing the fact that many Gen Z’ers won’t even apply for jobs without a salary listed. That trend is trickling up to the older generations, with many going as far as to say not including a salary range should be illegal. It’s becoming clear that, to attract quality candidates, you need to tell them what you think they’re worth.
The problem is: you just might not have the cold, hard cash to offer employees what they deserve. In addition to other perks like great insurance and a fantastic employee discount program, PTO can be a great way to attract new employees on a tighter budget. When new workers see the current staff posting selfies from the beach, they’ll be more inclined to submit an application. Who doesn’t want to work at a place where employees actually take — and enjoy — their vacations, guilt-free?
2. Increase Job Satisfaction and Retention
Employees are thinking about quitting their jobs left and right, in large part because they’re just not satisfied. Meanwhile, recruiting and training can cost tens of thousands of dollars per employee, so it’s best to hold on to the ones you have. Retaining employees isn’t just cost effective; it also helps preserve institutional knowledge and improve operational efficiency. That means companies need ways to make workers stick around for the long haul.
For current employees, using PTO is an important way to stay satisfied and engaged in their roles. Rather than hitting a burnout point or fuming over coworker drama, they can take a breather and get perspective on the positives. Sure, Sharon always asks an involved question at the very end of the Zoom meeting and all the Keurig cups are Hazelnuts. Still, who cares, when you’ve got a boss you know will approve your last-minute request for a week in Barbados?
3. Increase Productivity
A lot of higher-ups seem to think that taking a break really only benefits their employees. They assume that cutting (or discouraging) benefits like PTO won’t actually have any real impact on their bottom line. However, there actually is a business case for PTO — in fact, there happen to be several. The first is that paid time off can significantly increase worker productivity — so much so that workers who use 11 or more vacation days are 30% more likely to get a raise.
When you give workers their full PTO, you’re not just giving them more time to lie on a beach and sip margaritas. You’re also giving your company the gift of more focused, clearer-thinking, more on-task workers. The results could include all kinds of new innovations, operational improvements, and other profit-boosting changes. Or, at the very least, you’ll be more likely to see renewed motivation and on-time completion of goals and objectives.
4. Better Health and Lower Long-Term Health-Care Costs
Employees who overwork themselves and don’t take breaks are more prone to increasing levels of stress and burnout. The consequences are numerous: they can end up with major mental health issues, and stress can cause or exacerbate physical health issues as well. For instance, chronic stress can cause or worsen conditions like high blood pressure, diabetes, and obesity. Over time, it can lead to serious and life-threatening issues like heart attack and stroke.
It’s obvious, then, that encouraging employees to take their PTO can help them stay alive and healthy. But once again, there’s also a data-driven reason to make employees take all or most of their paid days off. Workplace stress costs companies billions of dollars in annual healthcare costs, and may be driving up spending over time. In the long-term, the investment you make in your workers’ PTO could be a lot less than what you might spend on their healthcare.
Go Big — Then Go Home
Employers who want to see a more productive, happier workforce should strongly consider encouraging their employees to take PTO. They’ll have to work hard, though, to make sure employees really believe they’re entitled to take this time. Managers and department heads can set a positive example by establishing a more time-off-friendly company culture. They can make it clear to employees that time off is a vital part of being a productive worker.
If you’re in a leadership role, don’t be afraid to take a “mental health day” or a week off to go hiking. Let your team members know (without being braggy about finances or destinations) how you’ll be using the time off. Ask them about their own holiday plans, or (without prying) what’s going on with their families and what resources they need. Show them that being a great employee doesn’t have to mean never having a life outside the office.
