What employer should know about PTO in the great resignation

Don’t make PTO a punishment: 4 things employers should know

March 28, 2022 3:05 PM

Because the United States does not have any laws requiring paid time off for its workers, employers can set their own parameters — and they’ve typically veered towards giving less, instead of more.

A study by business management software company Skynova revealed that while nearly 39% of employers have increased their PTO policies in the last year, it still does not measure up to employees’ demands. While full-time employees get an average of 18 paid days off per year, they want 25.

“I was quite surprised by that gap — there’s about a week missing from workers’ PTO,” says Mignon Fecker, a project manager working on behalf of Skynova. “It’s a bit baffling because 25 days a year doesn’t seem like an excessive amount, but we aren’t there yet.”

In light of today’s competitive labor market, employers cannot afford to ignore the growing demand for more PTO and the flexibility to use it. And amping up those days won’t be enough: Skynova revealed four important insights about PTO employers need to know.

Increasing PTO is not enough

While many employers have added more days to their PTO policy, Skynova found that nearly one in five employees has avoided taking time off due to an excessive workload or simply feeling unsupported by their employer.

“It’s one of the consequences of the Great Resignation, where people have to pick up the extra work employees leave behind,” says Joe Mercurio, a project manager working on behalf of Skynova. “The thought of taking time off will seem unreasonable because they are not sure who will be able to fill in for them.”

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Should the U.S. be taking notes from Europe when it comes to PTO?

It’s an endless loop: overworked and underappreciated employees eventually quit, leaving the remaining employees to feel even more overworked, and hence, more liable to leave. This means employees will hesitate to take time off if their workload threatens to turn their PTO into punishment. To combat this damaging cycle, Mecurio encourages managers to ensure there is no negative stigma associated with taking time off. Employees shouldn’t be looked down on for using PTO, he explains.

It may be time for a mandatory PTO policy

Eight out of 10 employees feel their employers should have a mandatory PTO policy, according to Skynova. And while 70.5% of employees said their company already had a mandatory policy in place, employees noted that the lack of enforcement could render these policies inconsequential.

“I grew up in Switzerland, where it was always encouraged to take time off, even on a national level, because by law you have to give your employees four weeks of PTO,” says Fecker. “Whereas what I’ve experienced in the U.S. leans towards a much more workaholic state of mind.”

And that state of mind seems to be a product of a work culture where PTO is not required or encouraged. That’s why mandatory policies often fail to be mandatory — many U.S. employers do not take PTO seriously, says Fecker.

Mandatory PTO can benefit employees and employers

Skynova found that more than two-thirds of employees with mandatory PTO rated their at-work happiness as good or excellent. Employees with mandatory vacation days were also 10% more likely to experience good or excellent mental health.

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Shutting it down

“If companies had enforced mandatory PTO policies, it could help employees feel much less worried, and they can naturally take off the time they deserve,” says Fecker. “And if employees are more rested and focused on the job, they will make fewer mistakes and be more productive. So there are long-term benefits for everyone.”

Managers are on board with better PTO policies

Seventy-six percent of managers agree that changing their company’s PTO policy would help them better retain talent. But only one in 10 managers felt their existing policies were competitive enough in today’s market.

“This is definitely going to be top of mind for employers, managers and employees right now,” says Mercurio. “I have already seen employers offering new hires two weeks off before they even start working — I hope policies like that start to take off.”

Mercurio advises managers to make sure no team member is being overworked and to listen to any concerns employees may have regarding changes in staff and policies. And although managers know upgrades to their PTO policy will help, Fecker notes that managers themselves have to do more. For example, she suggests leaders express enthusiasm and comfort around taking time off, for not only their workers but themselves.

“If your manager takes time off, then you know it’s okay to take time off too,” says Fecker. “We need to lead by example and normalize PTO in the workplace.”