Create a PTO culture that drives wellbeing and productivity

I sometimes start longer meetings with a “What’s your dream vacation spot” icebreaker, and inevitably someone laughs and says, “What’s a vacation?” I understand the fun of a trauma-bond as good as the next person, but I think we should be very careful taking pride in not taking breaks. (That’s especially true for my friends in healthcare.)

A Harris Poll found that 78% of Americans do not use all the vacation available to them – 89% of Gen Z (!!) - and 60% say they struggle to fully disconnect when they do take time off. What is leading to leaving so much PTO on the table? Two-thirds dread the backlog when they return and almost half feel guilty stepping away.

That must be a win for organization, right? Less vacation = more productivity? Nope.

A study by Ernst & Young found that for every 10 hours of additional vacation employees took, their year-end performance rating improved by 8%. Those who vacationed more were also significantly less likely to leave the firm, demonstrating that time off directly impacts both performance and retention.

Paid time off (PTO) is good for individuals and it’s essential for organizational success. So take the vacation, but let’s consider ways you can get rest, confident your colleagues won’t suffer while you are gone.

Top three ways to get a restful vacation

1. Truly disconnect

A meta-study from UGA found that taking time will help, but you need to truly disengage. Trust that the team can handle things without you so you can come back strong.

2. Move your body

UGA also found that some physical activity helps with breaking down the built-up stress and leaving you refreshed. You don’t need to suddenly pick up running, but got out for walks (or a swim) to get your body moving. Then head back to your beach chair.

3. Stop notifications

You shouldn’t plan to follow the back and forth. If you have done what you can to set your team up for success, you don’t need to watch the work happen.

Top three ways to ensure your colleagues don’t suffer

1. Share your plans

In the weeks leading up to your vacation, mention your trip in recurring meetings. This will ensure people get those questions answered while they can. I recently saw someone build their upcoming vacation into their email signature, for example.

2. Set your out-of-office

If someone did miss knowing you were leaving, it helps if they aren’t left waiting. If they see you are out, they can get creative or put their request on hold, rather than get frustrated you aren’t replying.

3. Cross-train regularly

Is there a process that can’t function without you? Take that seriously in the time between vacations. Tell others what you do and share your resources. This won't make you less valuable, it will make you a team player.

Top three ways companies can encourage PTO usage

1. Model from the top

Managers and leaders should take their vacation and not check in with the team. Let them know vacation is important and that you trust them; just leave reliable back-ups they can use so they aren’t without support.

2. Recognize for PTO best practices

I once worked with a nurse leader who shared she always sent a recognition to welcome back her managers and thank them for taking time off. She wanted them to know it was important and she appreciated them taking care of themselves.

3. Remind employees to plan ahead

When employees are burnt out, it is too late. Have managers remind employees on a regular basis to look ahead and put holds on their calendars. Planning ahead will ensure everyone on the team gets the breaks they need.

The bottom line

Employee rest doesn’t come at the expense of productivity – it supports it.

Time off enhances performance, improves retention and creates a more sustainable work environment. Organizations that embrace this reality – and build systems to support genuine time away from work – will find themselves with healthier, more productive and more loyal teams.

Learn more about how Reward Gateway | Edenred can help your organization support its PTO commitments and support the employees still on the clock with our suite of employee experience solutions.