PTO trends experience reformatting for many U.S. companies

New data about U.S. workers provided by the International Foundation of Employee Benefit Plans shows that paid time off (PTO) trends in U.S. workplaces are changing.

The Paid Leave in the Workplace 2024 Survey Report reveals what organizations are offering their employees for vacation, sick leave, parental leave and bereavement leave. The report also highlights the types of paid leave employees are seeking most adamantly.

Although federal law does not require employers to offer vacation time to their workers, nearly all (99%) organizations surveyed offer this benefit. For most organizations, the number of paid vacation days increases with service. Only 12% offer a flat number of vacation days regardless of service.

While most companies offer paid leave, many employees are simply not taking the time off. Heavy workload (44%) and lack of adequate staffing (23%) are the two most common reasons workers do not use their paid vacation time. That being said, roughly three quarters of employers (74%) encourage employees to take paid vacation days.

Paid time off can be a means to strengthen employer-employee relations, as well as a way for employees to manage their life outside work. According to the report, nearly 1 in 10 (9%) offer unlimited PTO or unlimited vacation. Most companies that currently offer unlimited PTO to their employees began offering it within the last four years.

Almost all (97%) organizations surveyed offer paid sick leave, with some (10%) mandating time off by state/local laws. Most organizations provide a flat number of sick days regardless of length of service for workers, which varies from PTO and vacation time. An interesting new program was also reported, noting a small percentage (11%) of organizations who allow employees to donate their sick time to employees in need.

Paid parental leave is offered by most (62%) organizations, and a majority (77%) pay their employees during their leave. The most common types of paid parental leave offered are:

• Bereavement (90%)
• Adoption (76%)
• Bonding (68%)
• Maternity (67%)
• Paternity (66%)
• Parental/family leave (64%)
• Foster care (50%)

Read more: Managing various leave benefits remains a challenge for employers, survey finds

“Paid time off (PTO) is a commonly offered benefit that might be overlooked when discussing flexibility as part of organizational culture,” said Julie Stich, CEBS, Vice President of Content at the International Foundation.

“Employers can take advantage of PTO design because one-size-fits-all arrangements may not work in their environment as they once did. Flexible PTO offerings can attract new candidates, avoid burnout and retain star employees by allowing them to best align work and their lifestyle, outside of a strict nine-to five schedule.”