Paid Time Off (PTO) is a considerable benefit to salaried employees and is often a major factor of whether an employee will accept a new position within an organization. However, it's not uncommon for employees to allow their PTO to remain unused. So, why do employees neglect this essential work-life balance opportunity, which plays an integral role in your overall employee engagement strategy?
In fact, your organization benefits from paying your employee their PTO while they are a member of your team, as compared to after they have turned in their notice and take their PTO to recharge before working for someone else.
According to Project: Time Off, an average of 3.2 days of PTO goes unused each year per employee. Why? Fear is the main contributor.
It is easier said than done, especially with SMART devices that enable our workforce to stay plugged in at all times. As an organization, it is truly in your best interest to encourage employees to take time off to promote a positive work-life balance. Employees need time away from work to rejuvenate themselves, thus increasing productivity, retention, new idea generation, and overall performance. In his book, The Happiness Advantage, Shawn Achor mentions research supporting this idea, noting that when, "the brain can think positively, productivity improves by 31 percent, sales increase by 37 percent, and creativity and revenues can triple."
Further, the Project: Time Off study found that employees who take all of their vacation time increase their chances of getting promoted and getting a raise by 6.5 percent when compared with employees who leave 11 or more days of paid vacation unused.
We now know that it is not uncommon for employees to allow their PTO to remain unused, and we also know the received benefits to your organization when an employee takes personal time to pursue rest and relaxation. As a vested management team member or executive, it's in your organization's best interest for you to encourage your employees to take time for themselves, but it's not easy to tell your employees to take time away. Start with these basic suggestions:
Employees who utilize and enjoy their PTO prove to be more beneficial to the well-being and profitability of an organization. The simplicity of encouraging your employees to recharge while on PTO can be the difference in maximizing employee engagement, while allowing you, as an organization, the opportunity to achieve the competitive advantage that you strive to attain.