Recent data reveals a concerning trend: many employees are leaving their paid time off (PTO) unused, which is having negative effects on both employees and businesses alike. A survey from Sorbet found that 62% of American workers did not use all of their PTO in 2023, and 5.5% didn’t take any time off at all. Gen Z employees are especially affected, with 32% citing the difficulty of taking time off while working from home. A significant portion of workers—especially younger employees—are sacrificing their well-being due to self-imposed pressures, heavy workloads, and the fear of falling behind.
The consequences of not using PTO extend far beyond the individual. For employees, the failure to take sufficient time off can lead to burnout, reduced productivity, and diminished job satisfaction. According to Eagle Hill Consulting, a staggering 45% of U.S. workers report feeling burnt out, and PTO is one of the most effective remedies. When employees return from a proper break, they are more productive, creative, and engaged. However, many workers fear the repercussions of taking time off—concerns about work piling up, being perceived as less dedicated, or even jeopardizing career advancement. This fear is often exacerbated by managers who unintentionally discourage time off or fail to model healthy work-life balance.
From a business perspective, the financial impact of unused PTO is considerable. Companies are facing mounting liabilities for unused vacation days, with some estimates placing the total annual liability for the U.S. workforce at over $1 trillion. Additionally, the inability of employees to fully disconnect during time off, such as responding to work emails or taking calls, undermines the very purpose of PTO, and affects overall productivity.
To address this issue, companies need to actively encourage employees to use their PTO. Clear communication of vacation policies, reminders throughout the year, and ensuring that workloads are managed in a way that allows employees to take time off without guilt are key steps. Leaders should set the example by taking their own time off and supporting employees in doing the same. Furthermore, offering flexible PTO options and fostering a culture that values time away from work can alleviate the pressures that prevent employees from taking the breaks they need.
Ultimately, businesses that encourage and facilitate proper use of PTO can benefit from improved employee morale, reduced turnover, and better overall productivity. By prioritizing rest and recovery, companies send the message that they value their employees’ health and well-being, fostering a healthier, more engaged workforce.
aHRrow can help businesses address the issue of underutilized PTO by implementing strategic approaches that promote a healthier work environment. By developing clear PTO policies, fostering a culture of work-life balance, and simplifying the PTO request process, aHRrow ensures that employees feel empowered to take time off without fear of falling behind. Additionally, aHRrow can help businesses address common barriers by incorporating reminders about unused PTO and emphasizing the long-term benefits of rest. These tailored strategies lead to improved employee morale, reduced burnout, and ultimately, a more productive and engaged workforce.