Are you using your paid time off policy to your advantage?
Don’t spend all your time working,” he said, on his 70th birthday. “You’ll regret it.”
That refrain is one I’m increasingly hearing from older relatives as they become too frail to travel. They either feel glad they travelled when they were younger, or regret that they didn’t when they could.
Either way, the moral is the same: don’t let your life revolve around work.
Not just because having life experiences and making memories is important, but also because breaks help us recharge.
Visiting new places stimulates creativity and a sense of awe. Getting away from constant work notifications calms our overstimulated nervous systems.
The data backs up the importance of PTO, too: the most satisfied US workers take an average of 15 days of PTO per year. However, average vacation time for employees is just 11 days after a year of service.
In the EU, four weeks is required as standard. This does not include parental leave, sick leave, allowance in lieu, or any other form of leave.
On top of that, in countries like France, it’s illegal for managers to contact their employees — or expect a response from them — outside of working hours. Not just immoral, illegal.
But I’m getting ahead of myself.
How can you ensure your paid time off policy gets the most out of your employees — and provides you with the best ROI?
Don’t give unlimited leave
Unlimited leave can, paradoxically, encourage employees to take less leave. They don’t want to be seen as taking the paid time off policy for granted by taking too many days off. Instead, they overcompensate by taking fewer days, if any.
The only way to mitigate this is for your senior leaders to set examples by regularly using their PTO. And for them to actually disconnect during those breaks. If they still reply to non-urgent emails on PTO, it’s not a break.
Have PTO expire
Offering a rollover paid time off policy is another trap. I’ve seen many friends and colleagues fall into it over the years.
So much so that at a previous role, a colleague accrued almost an entire year of leave. She’d felt too busy to take a break!
She ended up taking almost all of December off — the team’s busiest month — because her vacation days wouldn’t roll over. As a result, the rest of the team struggled to keep up with deadlines.
When she returned, she felt refreshed. Her colleagues felt exhausted.
Funny how that happened.
Whether employees take a break or not, work won’t stop. Workloads never end. Employees must create boundaries themselves, scheduling the break and trusting their colleagues to pick up the slack.
If they don’t trust their colleagues to handle things while they’re gone, that speaks volumes about your hiring process, team dynamics, and company culture.
The delays and stress caused by someone taking large chunks of leave at your busiest time can cost you money in the long-run, both in terms of missed deadlines and stressed employees.
A use it or lose it paid time off policy encourages them to take the time off in that year. This will benefit them — and your business — far more.
Allow trading and purchasing of PTO
To give employees the opportunity to travel or just take longer breaks, give them the option to trade PTO with a colleague, or purchase more. This ensures you don’t lose their internal knowledge, but they get a break.
Alternatively, you could allow them to take an unpaid sabbatical as part of your paid time off policy. That way, if they wish to go away for a prolonged period, they can.
I’ve known colleagues to do both of these options in the past. They came back calmer and full of new ideas.
No contact during PTO
I’ve seen a lot of videos from Americans who work in Europe who are surprised not just that Europeans get so much time off as part of their paid time off policy, but that their bosses won’t contact them out of hours. This is a legal requirement in countries like France, so companies won’t take the risk.
Allowing employees to fully switch off from work means they can come back recharged. If they’re constantly worried they’re going to get a notification from their boss about something that’s URGENT (unless you’re a surgeon, it’s rarely actually urgent), they won’t be able to enjoy themselves eating dinner, let alone on vacation.
Separate sick leave and vacation time
Vacation time and sick leave shouldn’t be in the same group of your paid time off policy. There’s nothing relaxing about being sick.
Employees need that time to recover from their ailment(s), but they also need time to mentally switch off. That’s almost impossible to do when you’re not feeling well.
Don’t require employees to use vacation time for medical appointments.
You shouldn’t punish employees for having health issues that require medical appointments, whatever they may be.
Your disabled or chronically ill employees need their PTO even more to recharge so that they can perform at their best. If they lose PTO for medical appointments, they lose the chance to recharge.
Instead, allow them to make the time back. Or have a separate form of PTO that they can use for hospital, doctor, or dentist appointments.
Employees with health challenges will think more outside of the box. They’ve spent much of their lives having to adapt leading them to think more creatively. They can be some of your most intuitive, innovative employees. But that can only happen if they feel supported by their employer and their paid time off policy.
Conclusion
Your paid time off policy reflects your company culture. It shows how much you value employees’ health and time outside of work, or if you expect them to work like AI agents.
If you want to get the most from your employees, you need a clear paid time off policy that you encourage employees to use. That way, they get time to recharge and can plan any vacations around the time they have.
Providing the option for acquiring more leave to take longer breaks shows employees you understand the importance of time off but don’t want to lose them as an employee just because they want to go on vacation for a week.
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