The Rise of Quiet Vacationing: How Managers Can Encourage PTO Without Losing Productivity

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benefits Benefits and Compensation Compensation employee productivity employees gen z HR millennials PTO PTO policy quiet vacationing work life balance

In the modern workplace, the concept of “quiet quitting” has taken on a new form: “quiet vacationing.” A recent Harris Poll highlights that more than half of Gen Z and millennials quietly took time off without formally requesting PTO during the July Fourth holiday week. As this trend gains traction, it’s clear that employees are creatively navigating the pressures of work-life balance, but at what cost?

While leaders want to foster a culture that allows for rest and balance, they also want to reward employees that are transparent and optimize efficiency during work hours. Here, the PTO dilemma has emerged as a sticky challenge, particularly for younger workers who, despite having vacation days, often leave them unused. In fact, 78% of U.S. workers admit to not taking all their allotted PTO.

The “quiet vacationing” conundrum is symptomatic, however, of deeper issues in workplace dynamics and trust. Here’s how to approach quiet vacationing and identify the root of the problem — while creating a culture that rewards productivity, transparency, and work-life balance.

1. Establish a clear PTO policy.

A well-defined PTO policy is essential. It should detail every aspect of taking time off, from how work will be covered to what out-of-office replies should look like on emails, how far in advance the PTO has to be requested, and who has to approve time off.  Clarity not only provides peace of mind but also acts as a reference point for managing PTO fairly. The policy should specifically address quiet vacationing, with clear consequences for failing to request time off formally. For instance, if an employee is frequently unavailable without prior notice, it could result in a deduction from their PTO balance. Collaborate with HR to ensure the policy is legally sound and respects employee rights.

2. Enforce mandatory time off.

Making PTO mandatory can significantly boost employee performance. According to the Harvard Business Review, each additional 10 hours of vacation time taken results in an 8% increase in year-end performance. Given that 78% of employees don’t use all their PTO, enforcing mandatory time off could lead to substantial productivity gains. Longer breaks, such as a full week off, are particularly effective in providing the necessary recharge.

3. Lead by example.

Employees often mirror their managers’ behavior. If you’re diligent about taking your PTO and completely disconnecting during your time off, your team is more likely to follow suit. As challenging as it may be to step away, especially as a leader, doing so demonstrates that you value rest and respect the company’s policies. This sets a powerful precedent for your team.

4. Address concerns individually.

If certain employees haven’t requested any PTO by mid-year, it’s time to have a one-on-one conversation. Some might be waiting for plans to firm up, but others may fear the consequences of taking time off. By discussing their concerns privately, you can reassure them that their time off is protected and guide them through the process of requesting it. For those particularly hesitant, consider assigning time off to ensure they don’t miss out on the benefits of rest.

Be especially aware of remote workers: remote workers are often less likely to take PTO, and worry more about the optics of time off. Yet, remote and hybrid work is only projected to increase currently,—20% of U.S. workers are remote, and by 2025, 32.6 million Americans will work remotely. To avoid burnout, remote workers may need to be explicitly told to use their PTO.

5. Set meaningful metrics.

What gets measured gets done, and employee performance is often measured by a range of metrics: deliverables, hours worked, responsiveness, productivity, revenue growth, among other benchmarks.

Decide what matters most for your business—and measure accordingly. For example, Employee A might consistently deliver development designs on time, hitting company quotas but logging fewer hours. Meanwhile, Employee B might struggle to meet output KPIs (key performance indicators) but is always responsive during work hours. The patterns of both types of employees could offer valuable insight into what works for your organization.

Rather than strictly measuring a worker’s output, ensure you’re tracking metrics that can impact the output to mitigate surprises and pinpoint ways to drive success.

6. Audit HR Policies

The rise of quiet vacationing isn’t just about employees trying to game the system; it also could reflect management’s failure to foster a supportive culture around PTO. Sometimes, employees save PTO for legitimate reasons—perhaps they have young children and need to save days for cold season, or maybe the company lacks robust disability or bereavement policies. Many expectant mothers in the US stockpile their PTO for pregnancy leave, as only 27% of the U.S. workforce has access to paid family leave. Conduct a holistic audit of HR policies to ensure workers are supported across the board, so they don’t feel the need to rely on PTO as a safety net.

The Bottom Line: Building a Culture That Values Trust

If employees are hiding their time off, it’s likely because they fear repercussions, such as being overlooked for promotions or missing out on key assignments—not necessarily because they’re playing hooky.

Here, building enough trust with employees so they feel comfortable asking for time off is key — especially since workers are more likely to be distrustful of managers higher up on the power chain: 79% of employees trust their co-workers more than their manager, head of HR, and CEO.

The goal is to foster a work environment where taking time off is not only accepted but encouraged. This approach enhances employee well-being and boosts long-term productivity, benefiting the individual and the organization.

Sam Naficy is the CEO of Prodoscore, an AI-powered and employee-centric workforce intelligence platform dedicated to making teams more successful.

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