Utilizing PTO by employees is beneficial to businesses

According to data from the U.S. Travel Association, in 2018 more than half of all American workers had unused paid time off. Over 768 million vacation days were unused in that year, according to the same report.

Some workers are apprehensive about using PTO. This could be because human resources isn’t aware of how each department operates, both formally and socially. Vacations can exacerbate an already stressful scenario where peers and managers feel overburdened. Some employees could experience social pressure to provide an explanation for their absence, such as a medical problem, even when they truly need a break.

Because employee fatigue lowers productivity and increases churn, wasted PTO loses firms money. If PTO is promoted, employees will perform better at work and their mental health will be safeguarded.

What the business gains from taking PTO

We occasionally take employee benefits for granted, but how does paid time off benefit the company? Why would a company pay employees to be unproductive?

Retention

Holidays and family time improve the work-life balance of employees. Regular vacation skippers will ask for pay raises and additional perks that you might not be able to afford. When bonuses are not provided or when they cannot make up for lost time in an employee’s life, family-oriented professionals will look for a less demanding workplace in order to achieve their desired work/life balance.

Productivity

Everybody has witnessed productivity decline due to burnout or insufficient sleep. Workers need regular breaks to refuel and keep their enthusiasm high. According to one study, performance evaluations got 8% better for every extra 10 hours of vacation time a worker took. When employees are engaged in a never-ending grind, it is more challenging for them to think creatively and solve problems. After taking some time away from the office, a worker or a leader could feel rejuvenated and have a new, perhaps innovative viewpoint on their work.

Enterprise culture

Many workers worry that taking all of their paid vacation days would result in punishment. Some coworkers dislike having to cover for someone else while they’re gone, especially during the busiest times of the year. Others worry that their trip could be used against them when they are considered for a job or during the employee review process. Squandered PTO eventually generates unnecessary hostility and strife in the workplace.

Spend less

Employees are being paid more than their annual salary if your company reimburses them for wasted PTO. Even if your state has “use it or lose it” policies on paid time off, there can still be long-term expenses related to things like employee turnover and declining health. The accumulated tension and frustration may lower the company’s morale as a whole.

Keep an eye out for these issues with solutions like HRM software with payroll.

How to encourage employees to spend their PTO

Making employees feel comfortable using their PTO is distinct from merely “giving” them time off. The quantity of unused PTO can be reduced with encouragement.

The benefits of taking time off from work should be discussed

Share with the employees the benefits of both short and long breaks. Talk about work-life balance at work and stress that it is a fundamental value in your company. Burnout and levels of individual motivation can be tracked through employee engagement surveys.

Make the company’s communications about PTO and time off clear

Your employee handbook must contain a clear PTO policy. Make it easy for workers to ask for time off, and make sure managers do all in their power to accede to reasonable requests.

Set a deadline for PTO requests that is both stringent and reasonable

Your business needs to provide managers enough time to make up the lost work in order to maintain productivity. If there is a certain deadline specified in the handbook, it will be easier to maintain consistency.

Avoid embarrassing yourself while on vacation

Make certain that managers and team leaders speak favorably about PTO. HR may remind a person if they have a certain amount of PTO remaining.

Limit the number of vacation rollovers

These devoted workers may be encouraged to use their surplus if there is a predetermined maximum rollover. Employees with dependents might save up PTO because they view it as a way to safeguard their income while on Family Medical Leave.

Let the staff unplug entirely

Vacationers shouldn’t be treated as distant, available employees. Try to get the materials and solutions needed ready in advance. A great strategy to increase the resilience of your system is to cross-train staff using learning management software to prepare for a colleague’s leaving.

The bar is raised by management and HR

Because ambitious employees could worry that taking time off will hurt their chances of getting future promotions, you must clearly state that everyone is encouraged to take time off. Managers and team captains can lead by example by informing their team of upcoming events and making sure that important tasks are accomplished. 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.