The Value of Vacation

If talent management is your top priority, consider the value of vacation benefits

This year’s Global Employer Survey revealed that building and managing the talent pipeline continues to challenge the world’s employers. At the same time, employee burnout has emerged as one of the top concerns for multinational corporations. We believe that employers should examine the value of vacation in supporting talent efforts and enhancing the employee experience.

Employees say that paid time off is important to them

Reiterating that pay isn’t the only factor impacting employee retention, 4 in 5 workers say that paid time off is an important feature affecting their decision to stay in their job.¹ Of those who say it’s important, one fifth ranked it in the top three features employers should consider improving. (Other popular areas for improvement included base compensation at 32% and bonuses at 26%).¹

What’s more, dissatisfaction with paid time off could actually be negatively impacting retention in some cases. Nearly one quarter of workers globally say they are considering leaving their job.¹ Of those thinking of leaving, 15% said the reason for wanting to leave was inadequate time off.¹

Vacation allowances vary by region, but common trends point to many workers feeling “vacation deprivation”

Vacation deprivation occurs when people work too much and have too little time off. Unfortunately, reports indicate vacation deprivation is at its highest level in 10 years.²

Vacation deprivation may be an early indicator of employee burnout

Over half of workers in a global survey (56%) said their workplace or industry is battling staffing shortages that are making it difficult for them to take vacation time.²

Fidelity’s research¹ shows that employers are reporting increasing levels of employee and manager burnout and decreased productivity:

While many employees report that work-life balance is a concern for them

• Nearly half (46%) say that work-life balance is causing them stress. ¹
• Two-thirds (64%) of these employees also report that it’s affecting their concentration at work. ¹

Questions for employers to consider

• Does your company foster a culture that values employee wellbeing?
• Do you encourage employees to disconnect when away from work, and discourage an “always on” culture?
• Do your managers model disconnecting and taking time off?
• Do you have adequate processes to manage workloads and provide coverage during time off?
• Does your company communicate clearly on annual leave policies, including leave roll over policies and limitations?
• Do you actively monitor leave usage and flag under-use to managers?

¹ The Fidelity Global Employer Survey 2023

² The Expedia 2023 Vacation Deprivation Report