Why Employees Aren’t Taking PTO – And What Employers Can Do About It

Paid time off (PTO) is one of the most attractive and valuable benefits an organization can offer. According to the 2024 SHRM Employee Benefits Survey¹, paid-leave options are tied with retirement benefits as the second most valued offerings by employees. Similarly, a 2023 Pew Research Center report, How Americans View Their Jobs², found that 62% of workers consider PTO, vacation and sick leave to be extremely important—surpassing even employer-sponsored health insurance (51%).

Despite its high value, PTO continues to be underutilized.

In its February 2025 Workforce Insights report³, Bamboo HR reported an 18% month-over-month decline in PTO requests and a 4% year-over-year decrease. PTO approvals also dropped by 10% month-over-month and 8% year-over-year.

Sorbet, a fintech company specializing in PTO cash advances, found that 62% of employees did not use their full PTO allotment in 2024. In fact, 32% of earned time off went unused, equating to an average of $2,950 per employee and totaling a staggering $312 billion in unused PTO across the U.S.⁴

Why aren’t employees using their PTO?

Several factors contribute to this trend:

1. Job Security Concerns: Many employees fear that taking time off could reflect poorly on their commitment or job performance, particularly in competitive industries or during economic uncertainty. A 2024 Authority Hacker survey found that 55% of full-time workers were concerned about their job security, a fear likely fueled by high-profile layoffs and industry volatility.
2. Cultural Pressure to Overwork: In many organizations, overworking is quietly celebrated. Employees may feel guilty about stepping away or fear the mountain of work waiting upon their return.
3. PTO Approval and Staffing Shortages: In understaffed teams, employees may hesitate to request time off or face difficulties getting PTO approved.
4. Incentivized PTO Payouts: When organizations offer the option to cash out unused PTO, some employees view it as a savings mechanism or financial bonus rather than a benefit meant to be used.
5. Confusion Around Unlimited PTO Policies: Unlimited PTO can sound ideal, but it often lacks clear guidelines. Employees may avoid taking time off simply because they’re unsure what’s acceptable or fear being perceived as taking advantage of the policy.

Consequences of Unused PTO

The impacts of underused PTO can be significant:

• Increased risk of employee burnout and disengagement
• Employees handling personal matters during work hours
• Reduced productivity and innovation

Proactive Strategies to Encourage PTO Usage

Employers can take a number of strategic steps to improve PTO utilization and create a healthier workplace culture:

• Evaluate the Effectiveness of Your PTO Program
  • Track key metrics: PTO requests, approvals, usage rates and rollover balances.
  • Survey your workforce to understand barriers, cultural perceptions and process clarity.
  • Analyze both qualitative and quantitative data to inform targeted improvements.
• Promote PTO Like You Would Any Other Benefit. Ensure that employees are educated about their PTO options, the process to request time off, and the importance of rest and recovery.
• Simplify the Request Process. Make it easy for employees to request time off and track their balances.
• Communicate Regularly. Share reminders about PTO balances and encourage proactive planning. Discuss busy seasons to help employees plan accordingly and be transparent that PTO may not be approved during that time.
• Empower Managers to Model and Support PTO Use. Train managers to promote time off, approve requests fairly and set a tone that prioritizes employee wellbeing.

Ready to Rethink Your PTO Strategy?

RKL Virtual’s Workforce Strategies team specializes in helping organizations evaluate and design policies that work—not just on paper, but in practice. From analyzing usage trends to crafting effective communication plans, we partner with you to turn PTO into a culture-building asset. Let’s work together to ensure your time-off policies support both your people and your bottom line. Contact us today using the form below or learn more about our services.

¹ https://www.shrm.org/topics-tools/research/employee-benefits-survey

² https://www.pewresearch.org/social-trends/2023/03/30/how-americans-view-their-jobs/?campaign_id=4&emc=edit_dk_20230527&instance_id=93612&nl=dealbook&regi_id=89216699&segment_id=134074&te=1&user_id=1fd47d1c620f5c013f883d1117616b28

³ https://www.bamboohr.com/resources/data-at-work/workforce-insights/feb-2025

⁴ https://www.getsorbet.net/sorbet_pto_report_2024.pdf