Give Them a Break: The Benefits of Encouraging Workers to Use Paid Time Off - FlexJobs (2024)

If youoffered workers a two-percent raise just for being an employee, do you think they’dpolitely say “thanks, but no thanks”?

Given that every week of paid vacation is the equivalent of nearlya two-percent pay increase, it appears that Americans are doing exactly this–or worse–every year by neglecting to use their paid time off.

According to aJuly 22 news release from the U.S. Bureau of Labor Statistics, 73 percent of all civilian workers in the United States received some paid time off in 2015. However, an estimated 55 percent of Americans did not use all of their vacation days. What gives?

The reasons employees don’t use paid time off are manifold, but usually revolve around a lack of job security or the opposite: the worry that no one else will be able to do their job while they are gone.

According to a recent Accountemps survey, 35 percent of employees admitted to taking fewer vacation days because they were concerned about colleagues having to absorb their workload when they were away, and 41 percent reported taking less time off because of the mountain of work they feared would be waiting for them when they returned.Others may feel pressure within the company to appear dedicated or worrythat they willbe seen as replaceable if the business runs smoothly while they are out.

Apart from the inherent stress involved in a job where you feel replaceable, or not replaceable at all, why should we care ifworkers aren’t usingtheir paid time off? It is theirs to use as they wish. But it turns out we should care. A lot. And not just as compassionate humans, but even when we’re talking about a business’ bottom line.

Hereare five significantbenefits of encouraging employees to take their paid time off:

1. Increased Productivity

It’s no secret that when people feel rested and rejuvenated, they think more clearly and work more effectively. Human resourcesmanagers agree.

According to a survey done by Project Time Off, 77 percent of HR managers believethat employees who make use oftheir vacation time are more productive than those who do not. In addition, Oxford Economics found that employees who didn’t use 11to15 days of paid time offlast year wereactually 6.5 percent less likely to have received a raise or bonus in the past three years compared withemployees who tookall of their paid time off.

Need more proof?Countries like Germany, Denmark, and Norway offer workers more paid vacation days every year than the United States, but still maintain highly productive economies, even outranking the U.S. in Business Insider’s 2016 list of the most productive countries in the world.

2. A Healthier Workforce

A more relaxed employee is a healthier employee, and that’s good news all around. Taking a vacation every year is often just what the body needs to refresh itself and mitigatethe negative health effects ofchronic stress. Having healthier employees means less time lost to sick leave, which can have a big effecton a company’s bottom line. Water cooler conversations about a recent trip to Belize instead oftwo weeks in bed with the flu can influence employee morale in subtle but significant ways.

3. Employee Retention

Speaking of employee morale, there is no better way to keep your best employees than by providingthem with a positive work environment. Top performers will have no need to search elsewhere for a jobthat offers better benefits or a more relaxed culture, thereby keepingemployee turnover to a minimum and saving companies countless dollars on recruitment and training.

4. Ability to Recruit Top Talent

Companies with a reputation for encouragingwork-life balance will inevitably draw top candidates. Acompany with a proven track record of encouraging workers to take yearly vacationswill certainly appeal more than one that doesn’t. Remember: your company cultureis a big part ofcommunicating withthe job seekers you seek.

5. Eliminate Financial Liability for Unused Days

Project Time Off estimates that America’s total liability because ofunused vacation leave was $65.5 billion in 2015 alone. This hidden cost of unused vacation rears its head when employees leave the company and their paid time offis translated intofinancial compensation. Reduce this problem by encouraging employees to take their time off yearly as intended.Anotherway somecompanies are eliminating this issuealtogetheris by implementing unlimited vacation time policies.

With all of these benefits in mind, how can companies encourage employees to use their paid time off?

Switch toa Use-It-Or-Lose-It Plan

To prevent employees from putting vacation off indefinitely, consider a vacation policy where paid time off expires at the end of every year. Sometimes a little tough love is necessary, and if that tough love “forces” employees to take the vacation they’ve earned, you’re likely to end up with a happier and more balanced workforce in the long run. When switching to a use-it-or-lose-it plan, make it clear that your intention is to ensureeveryone gets a break every year. This can alsobe an excellent opportunity to open up a dialog about what has been preventing employees from taking their due time off so that those issues can be addressed.

Reminders

Why not keep track of who has taken their vacation and who could use a break? According to Business Management Daily, PricewaterhouseCoopers is one company that does just that, by notifying supervisors when an employee is about to forfeit vacation time under their use-it-or-lose-it policy. This reminder system allows supervisors to encourage their subordinates to take paid time off. A nudgefrom management–particularly in high-pressure jobs–might be just the thing to get employees out the door.

Bonuses

Businesses that are really serious about creating a company culture that puts work-life balance center stage can consider offering bonuses or rewards to employees who take all of their paid vacation time. Santa Monica, California-based think tank RAND Corporation offers a 5percent bonus to employees who use all of their vacation days. Vacation and a cash bonus?! Talk about boosting employee morale! And this example isn’t as isolated as you might think. According to Forbes magazine, other companies offering monetary rewards for taking paid time off include Adobe, Autodesk, Baker Donelson, the Boston Consulting Group, Deloitte, Genentech, General Mills, REI, the Container Store, and more!

Set a Good Example

When yourboss never takes time off, it can be hard to feel good about your own vacation. Making sure that managers and supervisors also value their downtime will do a lot to show employees that they should value theirs, too. A good example from management will humanize your company environmentand build a company culturethatvalues work-life balance,encouraging employees to worksmarter, not longer.

Cross-Training

Finally, to prevent employees from pulling their hair outworrying who will be able to do their jobs when they are gone, consider cross-training so that several peopleknow at least the basics ofa single job title. One way ofdoing this from the ground up is by implementinga mentoring program that promotescross-training and communication between employees and departments.

Interested in hiringqualified candidates? Browse resumes and professional candidates in 55 categories.

Readers, what improvements have you noticed from employees taking their paid time off? How is your company encouraging the use of this benefit? Let us know in the comments below!

Photo Credit: bigstockphoto.com