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How Open Vacation Culture Boosts Retention and Well-Being

By December 30, 2025Insurance

Paid time off (PTO) is a powerful benefit for improving employee well-being, workplace culture and organizational outcomes.

But there’s a worrisome disconnect in many workplaces. Employees want to use PTO but often don’t.

To combat this trend, workplace experts encourage organizations to promote PTO as a way to relax and recharge. Supportive practices and open, frequent communications about the benefits of time off are known as “loud vacationing.”

Let’s explore why employees struggle to take time off, the disadvantages of unused PTO, and how a transparent culture of loud vacationing supports employer and employee well-being.

Why employees don’t use PTO

Convincing employees to take time off sounds easy, but research reveals it’s not so simple. According to the Harris Poll, 78% of U.S. employees leave PTO unused, even though 75% wish they could use all their allotted time.

High rates of workplace stress highlight the importance of this issue. According to the industry news source BenefitsPRO, 60% of employees feel burned out at work, and 81% say workplace stress increasingly makes them want to take time off.

If employees want to use PTO, then why aren’t they?

The industry news source Employee Benefit News (EBN) reports on key factors, including:

  • Fear of perception. Employees worry that using PTO could make them appear less committed, less reliable and more replaceable.

  • Guilt about workloads. Many employees feel bad about leaving colleagues to handle extra work in their absence.

  • More work upon returning. Many employees feel anxious about facing an overwhelming pile of emails, deadlines and tasks when they return to work.

These concerns can harm employee and organizational well-being in the long run. Unused PTO leads to decreased focus and productivity, and increased burnout, disengagement, and turnover.

The risks of quiet vacationing

In recent years, PTO challenges have led some employees to try a workaround known as “quiet vacationing.” This involves taking a day off without telling their manager or officially applying for PTO.

While it might provide a temporary break, quiet vacationing creates stress through secrecy. It prevents employees from achieving the restful benefits of PTO. It can also undermine workplace trust and culture.

Workplaces that discourage PTO can create resentment and damage their culture. In the long term, this practice can increase burnout and turnover.

The advantages of loud vacationing

In contrast to the quiet trend, loud vacationing fosters a culture of transparency, well-being and empowerment. The benefits extend beyond individual employees.

Workplace experts from the HR solutions firm Optavise, the educational site Mental Health First Aid and the talent management firm Cangrade emphasize employer and employee benefits.

Employer benefits include:

  • Reduced health plan costs. According to Optavise, employee health challenges cost U.S. employers $575 billion a year. PTO helps reduce physical and mental health risks.

  • Higher productivity. Recharged employees return to work with increased focus and energy.

  • Lower absenteeism. PTO reduces burnout, which can minimize unplanned absences.

  • Improved recruitment and retention. A culture that promotes time off can enhance your ability to attract and retain talent.

  • Decreased financial liability. When employees use most or all of their time off, it reduces liabilities related to unused PTO payouts.

  • Stronger workplace culture. Encouraging time off builds trust, transparency and morale.

Employee benefits include:

  • Better health outcomes. Employees who take time off report improved mental and physical well-being.

  • Enhanced performance. Rested employees are more focused and engaged.

  • Reduced risk of burnout. PTO helps employees manage stress and strengthen resilience.

  • Greater creativity. Time away allows employees to return with new perspectives, fresh ideas and better problem-solving abilities.

  • Increased life satisfaction. PTO contributes to better work-life balance and overall happiness.

When encouraged and supported, PTO is a win-win for individuals and organizations.

Navigating the PTO paradox

Despite the benefits of PTO, some organizations struggle with conflicting messages. A study highlighted by Fast Company magazine found that managers often send mixed signals. They may promote time off while also penalizing it.

Supervisors in the study acknowledged that PTO improves employee focus, productivity and resilience. But they also perceived employees who took more time off as less dedicated and less promotable.

Loud vacationing can help change these perceptions. Training and open communication can shift the narrative so that PTO is seen as an asset rather than a liability. Educate managers and executives on the benefits of time off for employees and your organization.

In addition, managers must lead by example. Leaders should plan vacations, share their experiences and discuss the positives of taking time off.

Prioritizing PTO

EBN says employers should encourage employees to schedule extended vacations in advance. This approach allows supervisors and their teams to plan, cover shifts and manage workloads. It also normalizes PTO use.

Cangrade reports that 80% of employees consider time off essential, yet nearly the same percentage leave PTO unused. This disconnect can damage employee health, productivity and retention. In contrast, creating a culture that encourages time off can build a resilient, engaged workforce.

For tailored strategies to enhance PTO policies and use, talk to your benefits adviser. They can help you optimize your time-off policies to align with employee wellness and workplace goals.