Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
Each year, millions of Americans are hesitant to use their paid time off (PTO). A recent LiveCareer report found that even when workers had more than two weeks available, over half planned to take less than a single week off during the summer. Behind this reluctance lies a multitude of issues that include guilt, anxiety, and workplace cultures that do not actively encourage employees to take time off from work.
LiveCareer’s data highlights just how widespread the issue is. 59% of employees feel anxious about taking a vacation, 19% worry about falling behind, another 19% fear they will miss out on work opportunities, and 12% are concerned about being viewed as less committed than their colleagues who do not take time off.
These barriers to taking time off reveal that the issue is not one of policy, but rather the cultural attitudes surrounding PTO policies.
Leaders should review their PTO strategies and remove all implicit barriers to time off by consistently reinforcing the value of paid leave (for example, by modeling it themselves). By normalizing the practice of taking time off from work, companies can encourage employees to prioritize their own wellbeing, which ultimately strengthens overall organizational resilience.
Company Culture and Leadership’s Influence on PTO
A robust PTO policy alone does not guarantee that employees will take their full leave allowance. Workplace culture, particularly the example set by leaders, often determines whether vacation time is actually used.
A concerning finding from LiveCareer’s report shows that 9% of workers believe their employer actively discourages time off. To explore this issue further, Allwork.Space spoke with Toni Frana, a career expert at LiveCareer. Frana explains that when company culture and leadership fail to support time off, employees can perceive the workplace as toxic and unsustainable.
“This shows up as employees who feel they can’t use their PTO because of a never-ending task list, managers who fail to model healthy vacation habits, and a culture that values constant presence and productivity over employee well-being,” she notes.
Frana emphasizes the influence of leadership on workplace norms, as reflected in the report. For example, one in three workers (33%) feels pressure not to use all of their PTO, and 20% are less likely to take time off if their employer does not model it. Employees look to leaders for cues on whether taking time off is acceptable.
As Frana points out, “When leadership normalizes overworking, employees learn to equate presence with value, fueling the burnout epidemic.”
Workplace culture and leadership norms contribute to 59% of workers feeling anxious about taking PTO, which can lead to unhealthy stress levels. Supporting this, data from MyPerfectResume indicates that 63% of workers experience burnout several times a week.
Frana concludes that cultures discouraging time off add unnecessary stress, while leaders who actively promote using PTO can improve overall morale.
To drive positive change, companies must build systems and cultures that encourage employees to use their benefits without fear of negative consequences. This includes aligning policy with practice through realistic workload planning, clear expectation-setting, and leaders modeling healthy time-off practices.
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Allwork.Space asked Frana to share her key strategies for cultivating a more positive PTO culture:
- Modeling healthy time-off behavior: Leaders visibly taking PTO sends a clear signal that rest is supported and valued.
- Normalizing breaks: Encouraging employees to share their PTO experiences leads to acceptance and a reduction of guilt around taking time off.
- Providing coverage and clarity: Ensuring workloads are managed and policies are transparent makes time off feasible.
- Manager check-ins: Managers must observe when employees are not taking time off and proactively support them to use their PTO.
- Set the expectation: Time off should be positioned as an integral part of the work culture and a way to encourage healthy, sustainable work habits.
- Integrate PTO into benefits: Consider incorporating mental health days or additional PTO as part of the standard benefits package to demonstrate a true commitment to the practice.
Generational Perspectives on PTO Anxiety
While PTO anxiety affects all employees, it manifests differently across generations. Younger employees are more likely to fear missing out or appearing uncommitted and “may hesitate to take time off while building their skills, establishing credibility, or trying to stand out early in their career,” explains Frana.
In contrast, older employees tend to worry more about job security or falling behind. Frana told Allwork.Space, “Older employees may feel pressure to stay constantly present and keep up with rapid changes in technology, like AI, or demonstrate their value as new processes and systems roll out.”
Younger employees increasingly value workplace cultures that prioritize mental health, flexibility, and work-life balance, signaling that supportive cultures are a critical factor in recruitment and retention processes.
Awareness of these differences helps organizations design policies that promote wellbeing and encourage full use of PTO for everyone.
In a recent Allwork.Space podcast, career expert and author Dr. Jasmine Escalera discussed how Gen Z workers are shaping new expectations around mental health, flexibility, and supportive workplace culture.
Escalera’s insights also reinforce the idea that reducing PTO anxiety requires a culture where employees can take necessary breaks without fear of judgment or career consequences.
The Business Case for Encouraging Time Off
Taking paid time off directly supports employee wellbeing, while unclaimed PTO contributes to burnout, disengagement, potential attrition, and, ultimately, costs organizations far more than any short-term productivity gains.
Frana points out that LiveCareer’s Hidden Cost of Extra Work report found 93% of employees feel burned out from taking on additional responsibilities (outside of their job description). Similarly, MyPerfectResume’s The Great Detachment revealed that 49% of workers are particularly stressed by heavy workloads, contributing to a staggering 79% feeling disconnected from work.
Taken together, these statistics underscore the importance of encouraging employees to use their full PTO allowance, which benefits both individual wellbeing and long-term organizational performance.
“PTO is a powerful, often untapped tool to reduce stress, prevent burnout, and boost productivity and workplace engagement,” Frana emphasizes. “When employees are overworked or constantly feel the pressure to be ‘on,’ both their performance and job satisfaction suffer. Pervasive stress and burnout with no relief don’t just make employees unhappy; they also drive disengagement.”
Some companies have already adopted PTO-positive practice. The following organizations are among those leading the way:
- Olipop: Requires all employees to take one full week off in the summer and offers a $1,000 stipend to incentivize participation.
- Irish Titan: Mandates two consecutive weeks of paid vacation for employees with over a year of tenure.
- Bolt: Replaced unlimited PTO with a mandatory four-week annual policy plus additional days based on tenure.
- Virgin Group: Offers unlimited vacation, encouraging staff to take time off whenever work allows.
“By encouraging employees to take PTO, companies can help them stay recharged, engaged, and productive. This, in turn, fosters innovation, creativity, and even potentially revenue growth. So, the bottom line is, PTO isn’t just good for employees. It’s also great for business,” stated Frana.
The PTO gap exposes the fundamental truth that policies alone are insufficient. Culture, leadership, and practical support ultimately determine whether PTO contributes to employee wellbeing or remains a theoretical benefit.
Organizations that actively support a PTO-positive environment will be better positioned to reduce burnout, increase engagement, and build sustainable, future-ready workplaces.
