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April 2025  Volume 23, Number 4        
 

Is Your Paid Time Off Keeping Candidates Away?

Job seekers nowadays have endless options if they're looking to switch jobs.

With such a tight labor market, they can afford to be selective. As employers compete for top talent, one aspect increasingly coming under scrutiny is paid time off.

Minimal Leave a Major Red Flag

According to a recent survey of over 1,000 workers by StandOut CV, the number one red flag for job seekers when looking at a job posting is minimal annual leave. More so than issues like a lack of salary range or an absence of diversity, skimpy PTO allotments are an immediate turn-off. This aligns with data from HR leaders indicating paid leave is considered one of the most vital offerings today, behind only health care benefits.

The research sends a clear signal—lackluster vacation and sick day allowances can drive candidates away in droves. With skilled workers in high demand, making sure your paid leave policies are compelling could be key to staffing up talent.

How Much Time Off Is Average?

Paid vacation, holidays and sick days remain near-universal. According to the 2024 SHRM Employee Benefits Survey, over 95% of employers provide all these types of leave. But how much time off is considered the norm?

For a full-time worker with one year of tenure, employers usually offer around 12 vacation days, 10 sickness days, and 20 PTO days encompassing both. While these indicate reasonable baselines, experts emphasize paid leave strategies should foremost reflect employees’ needs.

Barriers Preventing Use of PTO

Unfortunately, simply offering paid time off does not guarantee workers will take it. A 2024 survey unveiled some concerning insights:

  • 60% of employees struggled to fully detach from work responsibilities while on vacation
  • 86% checked job emails and 56% took work calls during time off
  • Nearly half felt guilty for taking leave.

With mounting evidence that failing to recharge heightens burnout and attrition risk, cultural roadblocks preventing employees from utilizing earned PTO present a critical obstacle for organizations to address internally.

Promoting a Healthy PTO Culture

Experts urge a multipronged effort from HR professionals and leadership to nurture a culture where employees feel comfortable taking advantage of paid leave:

  • Highlight benefits of taking time off for health and well-being
  • Institute policies that discourage working outside designated vacation days
  • Lead by example - have managers visibly take time away from work
  • Offer sufficient leave and flexibility to meet personnel needs.

 
 

 

 

 

In this issue:

This Just In ... Pay and Benefits Costs See Small Bump Up in Q4

Closing the Savings Gap: Empowering Women for Retirement

Higher Confidence Drives Increased 401(k) and HSA Contributions

What’s Trending in Employee Benefits? Personalization, Financial Help

Is Your Paid Time Off Keeping Candidates Away?

 

 


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