Why Younger Workers Are Struggling with Running Out of Paid Time Off

Work can be exhausting. Regardless of the field you are in, pushing yourself physically, mentally, and emotionally to the brink in the name of delivering the best service or product possible is certain to take a lot out of you. To this end, having periods of rest, relaxation, and even recuperation is essential for continuing to function successfully. 

In a micro sense, this is easy to understand, and it is built into regulations and legislation surrounding workforces. Workers must have time to go home and sleep in order to come back and work the next day. But in a macro sense, this can be more difficult to articulate. Succumbing to this kind of unrelenting schedule for weeks or months on end can lead to worker burnout, which ultimately harms both the worker and the business itself, as it often leads to costly turnover. In order to avoid such issues, paid time off is essential.

Paid time off (PTO) is so much more than just a workplace perk; it has real consequences on both a worker’s finances and their emotional state. In a recent survey conducted by Patriot Software, data showed that many younger workers are forced to take unpaid leave after exhausting PTO, while others avoid taking time off altogether due to cost concerns. This highlights a growing intersection between workplace benefits and financial well-being.

Use Cases: Why Leave Without PTO is Hazardous

The idea behind PTO is that it enables a much healthier relationship between the employee and employer. If a given worker feels tethered to the business they work for, unable to step away for fear of losing financial stability, that can create an aggressive and potentially even toxic work environment. Not only is this not good for the employee’s well-being, but it is ultimately not good for the employer’s well-being either, as workers who are dealing with such external stressors are often unable to do their best work amidst these circumstances.

As psychologist Susan Albers says, “Taking time off is one of the best ways to become more creative, make better decisions and increase your focus.” 

The survey ultimately found that more than 40% of millennials admitted to having taken unpaid leave after running out of PTO. This means that nearly half of this younger generation within the workforce had exhausted the sum total of their PTO and still found it necessary to take further time off, even if that meant losing money. What’s even more shocking is that it also found that 25% of millennials wanted to take unpaid leave but could not afford to. This reinforces the idea that time off is not equally accessible to all workers. 

Running Low on PTO

In the majority of fields, each worker is given a finite amount of PTO per year. This can make things especially difficult for many people to manage, as their emotional relationship with their job can and often does ebb and flow throughout the year. Hugely taxing periods of time at work can arise seemingly out of nowhere, and whether or not a person has saved up enough PTO for these periods is entirely subjective. Therefore, PTO is not just a benefits issue, but rather a financial planning issue. 

If employees feel uncertain about how much time they can take, or worry about running out, they may limit their use of PTO in the first place, reinforcing the cycle of underuse and burnout. In this way, younger workers may face more financial constraints, making unpaid leave less viable, even when they need time off.

FAQ

What is paid time off?

It is when a worker is able to take time off from their job while still being financially compensated.

How does paid time off run out?

It depends on the field and the individual worker, but generally speaking, each worker is given a set amount of PTO per year. Once that given amount is used, there is no way to accrue more until the next annual interval, resulting in people running out.

Is there a generational angle to PTO?

Judging from the data displayed in Patriot Software’s survey, it would appear that younger workers, such as millennials, are struggling more with PTO-related issues than others.

Can you take time off without PTO?

Yes, you can still take time off from your job without having PTO to back it up, but that means that you are agreeing to not receive any income during that time off. This can result in a loss of financial stability for many, which can actively discourage workers from taking time off at all.