The 5 Unmistakable Benefits of Paid Time Off (PTO)

When considering whether or not to take a job, employees will weigh multiple factors. One of the most important? The company’s PTO plan. Without a great PTO plan in place, you not only risk missing out on top talent, but you also miss out on the unmistakable benefits of paid time off. It’s time to make paid time off a priority. We’ll walk you through the reasons why.
The 5 Unmistakable Benefits of Paid Time Off (PTO)
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A critical, and extremely loved (or hated!) component of a company’s HR policy is their PTO plan. Before an employee decides to join a company, they’ll certainly ask about how much paid time off they’ll be allotted throughout the year. Having an answer that excites employees rather than disappoints them gives your company an immediate advantage. Because in the end, every employee wants to feel like they’ve earned a few vacation days to relax and get away from the demands of work.

Of course, there are many kinds of PTO plans, and you’ll need to pick the one that’s best for your business. The point of this article is not to persuade you to offer PTO (you should be doing that already). The point of this writing is to help you see that there are important, unmistakable benefits of paid time off and that you’re doing your employees and your business a major disservice by not being more generous with your PTO plan.

So what are the benefits of paid time off? How will offering employee’s more PTO make a positive impact on your company? Let’s dive in and find out.

The Benefits of Paid Time Off

There are many benefits of PTO and multiple reasons why you should be interested in offering more paid time off to your employees. While we weren’t able to create a completely exhaustive list of all the benefits of paid time off, here are five that stand out:

  1. PTO eliminates burnout
  2. PTO reduces unscheduled absences
  3. PTO lowers administrative costs and involvement 
  4. Generous PTO plans attract talented employees
  5. Your PTO plan can create an environment of trust

Now that we’ve narrowed in on these five benefits of PTO, let’s dive deeper into each and learn why they are so beneficial.

1. PTO Eliminates Burnout

Employee burnout is at an all time high. One study even suggests that upwards of 77% of employees are experiencing symptoms of burnout. A primary contributor to these staggering numbers? Lack of quality time off. Fewer breaks and longer stretches of work are leading employees to burnout faster than ever. This naturally results in high turnover as employees scramble to find a place where they can strike a better work-life balance. Even when turnover isn’t significant (which may be the case due to a tight labor market), feelings of burnout can lead to decreased productivity and can even bleed over to affect personal relationships.

A quality PTO plan will allow employees to take mental health days when they are stressed, take vacation with their families, and take time away when they are physically ill. In turn, after their break, employees will come back refreshed and ready to work again. This will not only decrease burnout and turnover rates but will create a trusting environment for employees and employers.

2. PTO Reduces Unscheduled Absences

No employee looks forward to calling their boss at the last minute to give them the update that they will need to skip work unexpectedly. Unfortunately, this happens to almost everyone. It’s just part of life. There are things that happen that can’t be prepared for, but sadly, many companies continue to remain inflexible in these situations.

Knowing that their boss may reject their request for unexpected time off, an employee sometimes chooses to simply skip work. After all, the saying goes that it’s easier to ask for forgiveness than permission.

One of the advantages of having a flexible PTO policy in place is that employees feel supported and comfortable managing the unexpected events life throws their way.  With the right PTO plan, an employee can use one of their allotted days so that there is only a minimal setback with the missed time at work. Because the employee feels more comfortable communicating their absence, this decreases the amount of involvement HR needs to have when it comes to unscheduled absences.

Want more tips and tricks to help manage your company PTO policies? We’ve got you covered.

3. PTO Lowers Administrative Costs and Involvement

A modern PTO plan involves more than just a PTO policy. Companies today can now track employee paid time off electronically, making it easy to see PTO balances and upcoming PTO on the schedule. When companies couple their generous PTO policy with software to track and manage the paid time off policies and hours for their staff, it reduces administrative costs and burdens significantly.

In the past, many employers simply did not wish to deal with the hassle of a more employee-friendly PTO plan. After all, giving employees more time off meant more complications with tracking and managing the various accruals and deductions that come with such a plan. Who had the time and bandwidth to manage all of that? The administrative burden to continually calculate and recalculate the various balances and allotments of hours was nothing more than a headache.

But with a PTO software like Eddy, the overhead is completely eliminated. Eddy’s PTO software dramatically simplifies the paid-time-off management for both the employee and the employer. By allowing the HR team to focus less on PTO, the administrative costs will decrease and the efficiency in other aspects of the company will increase.

4. Generous PTO Plans Attract Talented Employees

Businesswire surveyed Americans online and asked them to list their top desires when it comes to work perks. The results of that survey showed that a generous PTO plan was the number one most coveted non-insurance-related employer benefit. In fact, even when you break down workers by generation, a generous PTO plan was the top voted perk for Baby Boomers, Gen X, and Millenials (and the second most coveted for Gen Z). 

So, if there was any doubt that employees care a great deal about their company’s PTO policies, those doubts can be put to rest. The PTO plan you present to employees really matters. 

If you’re in the market for talented individuals and are trying to convince them to come and work for your firm, a well-developed PTO plan will give you a great advantage. Because when it comes to perks, no one can argue the value of generous paid time off. 

5. Your PTO Plan Can Create an Environment of Trust

Employees feel empowered when they are given the opportunity to make decisions. When employees work for companies that offer little to no flexibility when it comes to PTO, employees do not feel trusted. Instead, they feel like they’re being treated like a child who needs to ask for a hall pass from their teacher just so they can use the bathroom.

Your employees are adults. Treat them that way. Give them the flexibility they need to make decisions about when to be at work and when to be away. Of course, we are not encouraging a PTO plan that never requires an employee to work. There are definitely limits to any plan and no employee should be able to abuse the policies you have in place. But if you start from a place of trust and empowerment, employees will return and reward you for that trust by working hard and staying engaged. 

While it may not be the most obvious benefit of PTO, a relationship of trust and understanding can be developed between the employee and employer.

Eddy makes it simple to track and manage your company’s PTO policies.


The benefits of paid time off far outweigh any cost to the business. While it’s never fun to think about paying someone for work they’re not doing, there are plenty of reasons why this is the right decision. Employee’s are getting burned out more than ever. PTO helps keep burnout at bay. It also helps reduce unscheduled absences and, when handled with proper software, the administrative burden of managing your PTO plan is minimal. More importantly, when you’re willing to offer a generous PTO plan to employees, you’ll attract better talent and you’ll build a stronger, more trusting relationship with the people who work in your organization.

These benefits of generous paid time off are remarkably impactful and will be a significant driver for your business success moving forward.

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