Paid time off requests soar: Are companies prioritising work-life balance?

Work-life balance continues to play a crucial role in today’s employment landscape, with the number of employee paid time off requests (PTO) in the United States reaching a four-year high in 2023, according to a survey by cloud-based human resource platform BambooHR. 

The “Workforce Insights Report,” which used data from more than 4.3 million employees around the world, found that at least 44% of US employees made PTO requests last year, the highest number since 2020. Globally, the number of PTO requests has also increased to 56%.

The finance, non-profit, and technology spaces recorded the highest number of PTO requests last year, all tallying around 50%-52% of the total employees surveyed. On the flip side, the restaurant space has the least PTO requests, with just 19%.

On a monthly basis, around 32% of US employees ask for paid time off, but only half are getting approval. In fact, since 2019, PTO request approvals have only increased by 8%, creating a huge gap of unapproved time offs. 

Meanwhile, the study also showed that the average number of employee performance reviews in companies is increasing annually by 15%, with reviews spiking around summer and winter consistently. 

“This data tells me employees value work-life balance and direct feedback more than ever before. Managers looking to retain talent will need to take a closer look at what staffing needs they have and if increasing PTO and performance feedback is possible,” said Anita Grantham, Head of HR at BambooHR. 

“The workforce isn’t shy about asking for these things. I think we’ll only see this trend continue and organisations will have to increasingly embrace those values to attract the new generations entering the workforce,” she added. 

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The importance of balance in the employment landscape

This rising trend in PTO requests, paired with a significant number of unapproved requests, highlights a growing tension between employees’ desire for better work-life balance and potential resistance from employers. 

The data from the study suggests that many employers still need to adopt more flexible time-off policies, with workers across various industries prioritizing time away from work. Rigid time-off policies might not be meeting the evolving needs of the workforce. 

Employers who can offer flexible work arrangements and a culture that genuinely supports employees in taking time off may gain an advantage in attracting and retaining talent.

Unapproved PTOs can also signal a workplace where employees feel pressured to prioritise work over their well-being. This can lead to burnout, lower productivity, and decreased job satisfaction. 

Organisations need to recognize the long-term negative impact of overwork and ensure employees are genuinely encouraged to take the time they need to rest and recharge.

The Bamboo report also sheds light on the significance of listening to employee concerns about work-life balance. Companies that actively promote open communication and create mechanisms for employees to voice their needs are more likely to foster a healthy and sustainable work environment.

Embracing a culture that prioritises work-life balance is not just the right thing to do, it's a strategic business imperative for long-term success in today's competitive labor market.

READ | Longer work hours linked to declining happiness among young employees

The changing job market and implications for work-life balance

Meanwhile, the BambooHR study also showed a recovering job market where hiring and job openings are starting to outpace turnover. Data found a 25% increase in hiring in the US, with job openings also increasing 49% between December 2023 and February 2024. Turnover, meanwhile, dropped 22% from February 2023 to February 2024.

These shifts signal several potential implications for work-life balance, like a potential for increased leverage. As demand rises, employees may have more bargaining power in negotiating for better working conditions, including those promoting better work-life balance.

With employees potentially having more mobility, employers might be further incentivized to prioritize work-life balance initiatives to retain their top talent. This renewed focus on retention could contribute to positive changes in workplace culture.

As the tech industry continues to slow down in hiring, some sectors might need to focus intently on work-life balance due to the competitive nature of their job market. Organisations in such industries must proactively support balance to attract and retain the professionals they need.

While these trends are encouraging, it's important to be mindful that economic shifts can be unpredictable. Additionally, experiences may vary depending on industry, job function, and individual circumstances.  Employers and employees alike must remain vigilant to ensure work-life balance remains a priority.