Vacation And Paid Time Off Trends In The Workplace
Employees aren’t the only ones to benefit from taking a step back from their jobs for a week or two each year. Employers have noted the benefits of vacation time and the American economy as a whole has been positively impacted as well. It’s no wonder then that “vacation time” continues to be a major topic of conversation among the American workforce. Happily, we’re seeing that employers are really starting to drive the point home, and the results are encouraging.
According to the 2018 State of the American Vacation survey conducted by Project Time Off, in 2017, workers in the United States took an average of 17.2 days of vacation time, which is nearly half a day more than they took in 2016 and marks the highest level of vacation days used since 2013. But even though we’ve made great strides over the last few years, today’s numbers are still much lower than the long term average of 20.3 days (tracking vacation time spent from 1978 to 2000).
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Looking at it another way, even though more Americans are opting to take their earned vacation time, 52 percent have reported that they are still closing out the year with unused vacation days – accounting for 705 million unused days in 2017. According to the data, the more than 700 million days that went unused represents a $255 billion opportunity the American economy wasn’t able to capture. Had Americans used their vacation time, the activity could have generated 1.9 million jobs.
Something as simple as vacation time not only impacts the big picture, it can have significant ramifications on a business’ bottom line as well.
How Does Vacation Time Impact The Business?
The good news is that employers continue to see the positive impact of paid time off and are increasingly encouraging their employees to step away from the workplace. As a result, employees have become more confident about actually taking their vacation days.
Businesses owners who have taken such a proactive stance have noted:
- A more productive workforce – Employees who are well-rested and restored from taking time off tend to be happier and more productive.
- A stronger work/life balance – When employees see their supervisors and company leadership take time off, they are actively promoting a balanced work/life balance and facilitating a positive culture in the workplace.
- Positive recruitment results – The economy has shifted and now there are not enough qualified people to fill all the jobs that are available. That means companies have had to become even more competitive to attract and retain top talent. In addition to offering a competitive wage, a benefits package that includes paid time off has become a leading recruitment tool.
Why Don’t Employees Take Vacation?
So why, with all the benefits associated with vacation time, are more than half of U.S. employees choosing to leave vacation days on the table? According to the survey, the answer can be boiled down to:
- Job security – Some employees believe that not showing up to work every day could result in them losing their jobs.
- Budgetary concerns – Some individuals may not have the resources available to take a trip or plan an extended vacation, so they choose to adhere to routine and continue to report to work as usual.
- Cross-training concerns – Some companies report that they aren’t able to cross-train employees to cover a particular job when one employee goes on vacation.
Instead of allowing these concerns to stand in the way of an employee’s vacation time, business leaders can work to actively change their company’s culture with regard to the value of paid time off. Taking the following steps can have positive results:
- Ongoing education – Continue to talk about the benefits of vacation time with your employees and let them know that you actually want them to take time away from the job.
- Lead by example – Employees are more willing to schedule their own paid time off if they see that their supervisor, manager or other company leaders are making it a priority to get away from the daily grind.
- Cross-train your employees – If your employees feel like they can’t take time away from work because they are the only one who can do a particular job, they are likely to just stay put. When this kind of situation arises, it not only puts a huge strain on the employee, it can be a serious risk factor for the company. A business’s ability to function every day cannot hinge on the attendance of one person. Make sure there is always somebody available to pick up the slack when team members are sick, leave for vacation or even leave the company.
- Be flexible with the schedule – Even if an employee can’t or doesn’t want to take an extended vacation, consider allowing them to claim their time off in other ways. For example, instead of a full week, maybe they could take one day off each week or, maybe they could take a half-day off here and there.
Email Rea & Associates to learn more about the benefits of promoting a positive workplace culture and how you can promote the importance of vacations and paid time off in your business.
By Renee West, PHR, SHRM-SCP (New Philadelphia office)