The Hidden Business Costs of Unused Paid Time Off

Many organizations invest heavily in employee well-being, yet employees continue to leave vacation days unused. While it may seem like a sign of dedication, unused PTO can contribute to burnout, disengagement, and turnover. Employers should go beyond just offering PTO and make sure employees feel empowered to use it.

The Cost of Unused Time Off

Allowing time off is a good business decision. A lack of rest and recovery can cause stress and burnout in your employees. It doesn’t just hurt your employees; not giving them a break from work can increase turnover and healthcare costs and lower morale and productivity in your workplace.

Should PTO Roll Over?

According to a WorldatWork study, 76% of organizations allow employees to roll over unused PTO to the next year.

There are so many reasons why time off can benefit your business, and allowing employees to roll over time makes it easy for them to delay. And if employees don’t use the time they have for one year, the chances are slim that they’ll take even more days off the next year when they roll over. American leave tons of PTO days on the table every year – in fact, Expedia’s Vacation Deprivation Report found that 53% of Americans didn’t plan on using all their time off that year.

How to Encourage Employees to use PTO

  • Model healthy behavior from leadership
  • Train managers to discuss time off regularly
  • Send PTO usage reminders throughout the year
  • Review rollover policies
  • Monitor PTO usage trends
  • Celebrate rest and recovery as part of company culture

Your PTO policy should support both employee well-being and organizational success. If you’re reviewing time off practices, turnover concerns, or workforce engagement strategies, our team can help. Learn more about our consulting services here. Or send us a message here, and we’ll guide you to the right path.

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