The Cost of Unused Vacation

As we approach the end of 2018, there is always a scramble
to use accrued Vacation/PTO for companies with a calendar
year Vacation/PTO program.

Workload is just one of a number of reasons American
workers often fail to use all of their Vacation/PTO time
each year.

Employees frequently decline to take vacation time because
they fear:
(A) The work won’t be handled in their absence and they’ll
come back to a large amount of catch-up work or failed
projects or
(B) They fear that their work will be too well handled and
their superiors will realize they can get along fine
without them.

Here are 7 reasons for encouraging your employees to
regularly use their Vacation/PTO time:

1. Companies may be left with a financial liability in the
form of accrued leave that must be paid at time of
termination, depending on state law or company policy.

2. Employees who have a chance to rest and revive are
usually healthier, with less stress and fatigue.

3. Studies show that workers who are rested and relaxed
have higher productivity and may avoid costly mistakes.

4. Employees who are encouraged to take regular vacations
are more likely to stay with their employer.

5. Employees who get away from work for a while may come
back with creative inspiration and fresh perspectives.

6. Employees who take vacations are often happier than
those who don’t. Overworked employees may become
disgruntled and “cranky,” resulting in more office
squabbles and tension.

7. Refusal to take vacation could be a red flag that an
employee is committing fraud. Fraudulent behavior often
requires complete control over a process by one person,
which may be difficult or impossible to maintain if the
person is out of the office. Mandatory vacation could
detect and even deter any existing or potential fraudulent

HR POINTER: Organizations should view vacations as part of
their overall employee wellness strategies and as a key
element in ensuring that the workplace is flexible and

Managers should encourage the use of vacation days by
taking vacation days themselves and reminding employees
periodically to plan their time off so their workload can
be allocated to others.

If all else fails, encourage employees to take long
weekends, particularly when they feel that they can’t
afford a proper vacation.


Share With Your Colleagues:
This entry was posted in Tip Of The Week. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *