More than half of all American workers have unused PTO time in 2018, according to the U.S. Travel Association. That year, almost 768 million vacation days were unused PTO, according to the same survey.
Using PTO is feared by some employees. This is due to the possibility that human resources does not understand the formal and etiquette-related procedures of each department. When someone takes a vacation, it can make managers and peers feel even more overworked. Even when a worker needs a break, societal pressure may make them give an excuse, such as a medical condition, for their absence.
Since employee burnout reduces productivity and raises attrition, unused PTO is not at all advantageous to businesses. Employees’ performance at work can be enhanced and their mental health can be protected by being encouraged to take PTO.
Benefits of PTO to the business
Many of us take for granted the fact that employees receive benefits, but how does paid time off benefit the business? Why should a business pay its employees to not work?
Retention
Work-life balance is better for employees who get holidays and time with their families. Employees who regularly miss their vacations will demand raises and other benefits, which you might not be able to afford. Family-oriented employees will search for a less demanding company in order to attain their desired work/life balance if bonuses are not offered or cannot make up for lost time in an employee’s life.
Productivity
After burnout or not getting enough sleep, everyone has experienced a decline in productivity. To recharge and maintain motivation, workers require breaks from time to time.
According to one study, for every additional 10 hours of vacation time an employee used, their performance assessments improved by 8%. Worker creativity and problem-solving skills suffer from a never-ending grind. A worker or a leader can be rejuvenated and given a fresh, possibly inventive perspective on their work by taking time off from work while on vacation.
Company culture
Many employees are unsure of how they will be perceived if they use all of their paid time off. Particularly during the busiest time of the year, some coworkers don’t want the added responsibility of covering for someone else while they are away. Some people are concerned that their taking a vacation might be used against them during the next employee review process. Unused PTO ultimately breeds unwarranted animosity and conflict within the workplace atmosphere.
Save money
You are spending more than a worker’s annual salary if your organization pays employees for unused PTO. There may still be long-term consequences in areas like attrition and deteriorating employee health even if your state permits PTO to vanish under “use it or lose it” laws. The company’s general morale may suffer as a result of the accumulated tension and annoyance.
Keep an eye out for these issues with solutions like HRM software with payroll.
How to motivate staff to take PTO
There is a distinction between “giving” employees paid time off and ensuring that they are free to utilise it. The quantity of unused PTO can be decreased with a little encouragement.
Talk about the advantages of taking a break from work
Discuss the advantages of both shorter and longer breaks with the employees. Talk about work-life balance at work and emphasize it in your company’s culture. Track personal motivation levels and burnout through employee engagement surveys.
Clear up PTO and time off policies communication
Your employee handbook must have explicit PTO policies. Employees should find it simple to request time off, and managers should try their utmost to grant justifiable requests.
Set a precise, realistic due date for PTO requests
Managers need ample time to fill up the gaps if the company is to maintain productivity. Consistency will be simpler to maintain if there is a clear deadline in the manual.
Discourage vacation resentment
Make certain that managers and team captains talk positively about PTO. Employees who have accumulated a specific amount of PTO can receive reminders from HR.
Allow some (but not all) vacation rollovers
Those dedicated workers may be encouraged to utilize their surplus if there is a cap on rollover. Because they view it as a way to ensure that Family Medical Leave won’t reduce their salary, employees with dependents may store up their PTO.
Permit workers to completely unplug
Nobody should be treated like an on-call remote worker while they are on vacation. Try to prepare the required information and materials in advance. Make your system more resilient by cross-training employees with learning management software to get them ready for a colleague’s vacation.
HR and managers set the bar high.
You must be explicit that everyone is encouraged to use their time off because ambitious employees could worry that doing so will harm their prospects of receiving future promotions. Managers and team leaders should lead by example by alerting their team and making sure 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.