Burnout is a silent epidemic sweeping through the modern workplace, leaving a trail of disengagement, decreased productivity, and diminished wellbeing in its wake.

While many organisations offer paid time off, or PTO, the reality is that these policies often fall short of truly supporting employee wellbeing. A generous vacation policy can provide employees with the opportunity to rest, recharge, and return to work feeling refreshed and motivated. Time off allows individuals to pursue personal interests, spend time with loved ones, and travel, thereby reducing stress and preventing burnout.

However, the mere existence of a vacation policy does not guarantee its effectiveness. While research clearly shows that taking time off helps employees avoid burnout and perform better, many still aren’t using all their vacation days. This suggests a potential mismatch between company policies and the actual workplace culture surrounding time off. It’s crucial for organisations to address this disconnect and foster an environment where employees feel genuinely encouraged and supported in taking breaks.

According to Deloitte, at least 768 million days of PTO went unused by American workers, for example. This equates to over a quarter (27%) of their earned PTO, marking a concerning 9% increase from the previous year.

Why aren’t employees taking a break?

Despite the clear benefits and often generous PTO policies at most companies, employees still struggle to fully utilise their vacation time. This reluctance stems from a complex interplay of factors.

For instance, many fear falling behind in today’s fast-paced work environment, worried that taking time off would result in an unmanageable workload upon their return. This is often compounded by heavy workloads and tight deadlines, which can make employees feel guilty or irresponsible for prioritising their wellbeing.

“The week before you leave is horrible – you are trying to do twice the work in half the time,” said Melissa Gratias, a productivity expert and the owner and principal of the business consulting firm Progress Not Perfection.

“You have doubled up on meetings and the ‘before you leave, can you…’ emails and interruptions skyrocket,” she said.

The pervasive “always on” culture, fuelled by technology, blurs the boundaries between work and personal life, making it difficult to truly disconnect and recharge. Fear of judgement also plays a significant role, with some employees worrying that taking time off would be perceived negatively by colleagues or superiors. Financial concerns and the difficulty of “switching off” even during periods of leave can also further contribute to this reluctance.

Also Read: PTO: Are companies prioritising work-life balance?

Planning and coordinating ahead of a PTO

Chrissy McGarry said she takes time to “maximise every minute to tie up loose ends and complete pending tasks” in the days leading up to her PTO. More importantly, as a former COO at Second Front Systems, McGarry appoints a second-in-command.

“In my absence, my trusted #2 assumes the reins and acts as the go-to person for the team,” McGarry said.

“Establishing a clear chain of command ensures smooth operations and minimises disruptions.”

In some cases, managerial attitudes and behaviours can subtly or explicitly discourage employees from using their vacation time.

“As a Chief People Officer, I saw the systemic issues that prevented people from taking real time off or setting it up so that those who did take time put undue burden on others,” said Lisa Friscia, president and founder of Franca Consulting.

“I have a few practices I’ve used to help encourage taking PTO while also honouring that sometimes ish has to get done.”

One such practice is to understand the “rhymes” of your organisation and communicate when people can take extended periods off. “Finance teams will be busy during audit season. Recruiters in school systems are packed from May through August. If your team already knows there is a time when everyone is truly needed, communicate that so they can prioritise vacation at a different time,” Friscia said.

Addressing these barriers requires a multi-faceted approach that combines policy adjustments, cultural shifts, and individual support. But redesigning vacation policies often requires a comprehensive strategy that moves beyond simply offering more days off.

Policy enhancements to maximise PTO impact

To truly combat employee burnout and foster a culture of wellbeing, organisations must go beyond simply offering PTO. Policies must be strategically designed to encourage regular breaks, promote a healthy work-life balance, and ensure that employees feel supported in prioritising their wellbeing. Here are some ways you can boost your PTO policies:

1) Increase vacation time

Implement a generous PTO policy that truly allows for adequate rest and recharge. Benchmark against industry leaders and consider implementing a minimum vacation time policy to ensure all employees, regardless of tenure, take sufficient breaks.

2) Mandatory time off

Require a minimum number of consecutive vacation days to encourage true disconnection and rejuvenation. This ensures that employees are not simply catching up on emails or attending to urgent matters while “on vacation”.

3) ‘Use it or lose it’ with exceptions

Implement a “use it or lose it” policy with clearly defined exceptions for extenuating circumstances, encouraging employees to prioritise their wellbeing while maintaining flexibility for unforeseen events.

4) Sabbaticals

For long-tenured employees, consider offering sabbatical leave to pursue personal or professional development opportunities. This can reinvigorate employees and foster a sense of loyalty and commitment to the organisation.

5) Fostering a supportive culture

While robust PTO policies lay the foundation for employee wellbeing, they are only effective within a supportive organisational culture. This means actively promoting a healthy work-life balance, discouraging overwork, and celebrating those who prioritise their wellbeing.

Encourage frequent breaks. Promote a culture that values regular breaks, both short and long, to prevent burnout and maintain productivity. Encourage employees to take short breaks throughout the day to rest and recharge, and to use their vacation time throughout the year, not just for extended holidays.

Discourage overwork. Implement clear policies that discourage excessive overtime and weekend work, fostering a healthy work-life balance. Ensure that managers lead by example and prioritise their own wellbeing. Regularly assess workloads and redistribute tasks as needed to prevent employee burnout.

No contact during vacation. Implement a strict “no contact” policy to ensure employees can truly disconnect and recharge without interruption. This includes discouraging emails, phone calls, and other work-related communications during vacation time.

Also Read: The world's most vacation-deprived workers

PTO strategies that empower employees

“PTO is one of the big factors in job satisfaction. Any fancy leaflet with work-life balance tips won’t substitute an extra day off,” said Anton Radion, co-founder and CFO of the payroll and HR specialist Juggl. “So, with all this chaos, it’s clear you need a fresh PTO policy – one that’s easy to understand, fair to everyone, and can grow right along with your business.”

Radion’s advice: “Check out what other companies in your industry are doing for paid time off [and] think about what your employees want, like work-life balance and job satisfaction.”

Employers should also “consider giving employees more freedom with their time off to boost morale and productivity”.

Empowering employees to take ownership of their wellbeing requires more than just generous PTO policies. By providing employees with the tools and resources they need to manage stress and prioritise their wellbeing, organisations can cultivate a more engaged, resilient, and productive workforce.

1) Provide flexible work arrangements

Offer options like remote work or flexible hours to empower employees to better integrate their personal and professional lives. This allows employees to attend to personal appointments, family obligations, and other commitments without sacrificing their work responsibilities.

2) Support vacation planning

Provide resources and support for vacation planning, including travel assistance, destination recommendations, and financial planning tools. This can help alleviate the stress of planning a vacation and encourage employees to take full advantage of their time off.

Gratias recommends workers prepare for time off months in advance. “Plan your time away for the next 12 months and get it on the calendar. Aim to use most of your allowed PTO. This is an important step.

“Be smart about how you prepare for your time away from work,” she said.

3) Offer wellbeing programs

Invest in programs that promote employee wellbeing, such as stress management workshops, mindfulness training, and employee assistance programs. These programs can provide employees with the tools and resources they need to manage stress and maintain a healthy work-life balance.

Wellbeing as a competitive edge

The future of work is being shaped by a growing recognition that employee wellbeing is not just a “nice-to-have” but a critical driver of organisational success. Forward-thinking businesses are moving beyond traditional PTO models and embracing a more holistic approach to employee time off, one that prioritises rest, rejuvenation, and a healthy work-life integration.

This shift is driven by a confluence of factors, from the rising tide of burnout in the modern workplace to the increasing demand for flexible work arrangements that cater to the evolving needs of the workforce.

Organisations that fail to adapt risk losing their competitive edge in the war for talent and hindering their ability to innovate and thrive. By embracing a proactive and comprehensive approach to employee wellbeing, businesses can unlock the full potential of their workforce, fostering a more engaged, productive, and ultimately, successful organisation.