6 Reasons Employees Don’t Use Vacation Time (and Why They Should)

From a survey report of IPX1031, a majority of US employees shortened or canceled their vacation leaves since the pandemic, whereas 56% of the employees admitted that they had unused PTO in the year 2020. In fact, use of vacation days in the U.S. is at an all-time low of the past 40 years. We are giving up around 169 million PTO days annually — which is about $52.4 billion in forfeited benefits.

(image: https://www.istockphoto.com/photo/conceptual-hand-writing-showing-pto-paid-time-off-business-photo-showcasing-employer-gm1046618504-280020467)

This may sound like an employer’s dream, but it’s not. Employees who don’t take time to recharge risk burnout, chronic sleep deprivation, and lower job performance. On the other hand, employees who take vacation leaves are less prone to sickness and depression.

With so much research encouraging vacation, why do Americans continue to squander their PTO? Below are the top six reasons why employees don’t take their vacation days:

1. Fear of Returning to a Mountain of Work

According to the Project: Time Off study, this was the most common reason employees listed for avoiding vacation. When the result of a week off is a staggering amount of work upon returning, it’s not totally unreasonable for employees to be skeptical about the overall benefits of taking their PTO.

As an employer, it’s important to try to mitigate this as much as possible. Make a point of meeting with employees the day they return to help establish their priorities for the coming week. Try implementing a three-day grace period — prioritize one or two more time-sensitive tasks for the first three days of an employee’s return, and allow them to address the rest of their catch-up at a more leisurely pace.


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2. Fear of Being Seen as Replaceable

Lingering job insecurity is an unfortunate consequence of the recent pandemic. There are many ways to deal with job insecurity at the workplace, but if you’re seeing a correlation between job insecurity and unused PTO, then you must first combat the idea that taking a vacation is a replacement-worthy offense. Talk to your HR department — ensure that an overview of vacation policies is part of your onboarding process. The more forthcoming you are with PTO information, the less likely your employees are to see it as frowned upon.

job insecurity and unused PTO

3. Wanting to Show Job Dedication

As a company, you want to try to value performance over presence, and encouraging employees to take vacations will work wonders in improving productivity and performance. In fact, a survey from researchgate reveals that vacation has a direct impact on employee’s well being, and productivity.  Moreover, taking vacations alleviates burnout and stress that ultimately contributes to enhanced productivity. Therefore, upper management should emphasize vacation as a crucial element of optimal performance. While being at work is important, a good way for employees to show their dedication is to use their allotted PTO to take care of themselves and recharge.

vacation relieves burnout

4. Company Culture Discourages Vacation

Lack of communication about vacation policy, a negative vibe toward vacation, and senior-level management that never takes time off can all deter employees from feeling comfortable using PTO. In the Overwhelmed America Study, two-thirds of employees reported getting negative, confusing, or no communication regarding PTO policy.

There are many ways to change the company culture regarding vacation days — have employees share vacation photos at company meetings, reward the employee of the month with round trip airline tickets, revisit the vacation policy language in your employee handbook, take a vacation yourself, hire a wellness coach to speak on stress relief and time off. In touting the benefits of PTO, you can empower your employees to care of themselves, and thus improve their performance in the workplace.

5. Inability to Disconnect

When nearly half (46 percent) of senior business leaders continue responding to emails while on vacation, employees might feel pressure to do the same. If you’re on the beach taking calls and answering emails, this suggests that vacation is not an excuse to be unavailable.

The best way to combat this mindset is to lead by example! Take a vacation, set an automatic “out of office” response email. Don’t forget to tell your employees only to call you in case of emergency.

out of office

6. Stockpiling

For companies with roll-over vacation days, employees can justify putting off vacation for years. Studies from VacationRenter suggested  that a use-it-or-lose-it PTO policy can incentivize employees to use PTO without the option to roll over unused days, which ultimately encourages employees to take time off each year. 

With the holiday season upon us, now is the time to reevaluate the way your company treats vacation days, and encourage those who haven’t yet to take advantage of their PTO. For more information on choosing the best vacation policy for your company, click here.


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Sonika Malviya


Sonika Malviya

Sonika works as a Content Writer with Replicon. She is a bibliophile person and loves to write compelling content on a multitude of niches that can add value to the readers. Replicon provides award-winning products that make it easy to manage your workforce. With complete solution sets for client billing, project costing, and time and attendance management, Replicon enables the capture, administration, and optimization of your most underutilized and important asset: time.


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