The ROI of Vacation Time

Posted by Michelle Velto

As a leader, balancing departments’ time off schedules, while managing workloads and prioritizing your own efforts to recharge, can be a challenge. However, 76% of U.S. workers wish their office culture placed higher value on taking breaks from work. At the same time, the organizations that encourage time off see tangible business benefits. Especially in the current environment – where “quiet cracking” and burnout are increasingly prevalent – prioritizing vacation time can have a positive impact on your team’s bottom line.

The National Alliance on Mental Illness shares the percentage of employees feeling “very stressed” has doubled since 2024, with 22% sharing their job is a main factor in their mental health. EY found for every additional 10 hours of vacation an individual took, their performance went up by 8% and each additional week of vacation extended the employee’s tenure with their company by eight months. In addition to benefitting employee retention and performance, PTO is important to employees when choosing an employer. More than a quarter of professionals would take a job with unlimited PTO, even if it comes with a salary decrease. Yet, just 54% of employees use their allotted PTO due to a variety of factors.

Here are five steps for investing in long-term health and productivity to get the most ROI from your employees this summer.


1. Address reasons employees don’t take PTO.

Often, this stems from a company or team’s overall culture and the stigma around taking time off. If using PTO comes with perceived disdain from managers or colleagues, it’s time to adjust the narrative. Why don’t employees take PTO?

  • 43% have too much work
  • 30% risk falling behind
  • 29% feel too guilty
  • 19% don’t feel supported in taking time off


 

2. Ensure proper coverage.

Given that heavy workloads are a big factor in individuals feeling they can’t take vacation time, make sure you’re creating an environment that can handle time away without resulting in a burden for the rest of the team. Prior to an individual’s vacation, provide the time for them to complete projects and wrap up pending deadlines. If a colleague needs to step in during an absence, determine what lower priority projects can be removed from that individual’s existing workload or postponed to a later date. Shift responsibilities while being cognizant of others’ day-to-day roles and focusing on areas of highest priority.


 

3. Have a plan for emergencies.

Even while technically on PTO, an “always available” business climate has many professionals responding to emails and taking calls. Help make checking in less of a temptation by having a plan in place to proactively contact the individual if there is a high-importance situation. Discuss what may come up ahead of time and align on any touchpoints that may be necessary. This helps reduce constant email refreshing and gives a reassurance that if a problem that truly needs them arises, they will be contacted.

 

 

4. Be a good example.

A large part of maintaining a healthy vacation culture is ensuring leaders and managers are prioritizing their own time off. Share your vacation plans and stay offline to the best of your ability during that time. Stepping away can have an impact on your ability to be creative, patient and innovative, while at the same time offering your team a chance to step up and take on more responsibilities during your absence.


 

5. Prioritize time to recharge.

Working at top-capacity is not sustainable without time to rest and will ultimately lead to burnout. Ensuring employees take their earned time off each year should be a business priority. As your team members’ vacation time comes up, help them build plans to feel confident that their projects and responsibilities are taken care of so they can truly step away. Encourage informal discussions around non-work time and be supportive in those endeavors, whether they’re visiting an exotic destination, focusing on projects around the house or simply catching up on sleep. A healthy work-life balance leads to a happier and more engaged team.

Resting is not only valuable, but also necessary. In a business climate plagued by burnout, focus on creating the balance and mental breaks that will support your team in reaching their highest performance potential.