Today’s companies are looking for ways to beat the high cost of employee turnover while attracting top talent. While you may believe that the secret lies in increasing employee compensation in the form of higher pay or monetary bonuses, the truth about how to land — and keep — the best performers may surprise you.
Recent data shows that many employees may be willing to trade a higher salary for additional time off work. In 2025, an annual survey revealed that three-quarters of employees now rank work-life balance as a higher priority than pay for the first time in the survey’s 22-year history.
HR pros and business owners can take this as a sign that the generational tide is turning and, as a result, a shift in benefits strategy may be necessary.
For those wondering how to help employees achieve the work-life balance they crave, PTO can be an excellent start. Find out why employees appreciate paid time off as a benefit, the different ways you might consider offering it, and best practices for smooth implementation.
Why Is PTO So Important to Employees?
Much has been said in recent years about employee well-being. According to Gallup, 76% of employees experience burnout at work at least sometimes. Around 21% report that they experience it often. Unfortunately, burnout can lead to decreased morale, lower productivity, disengagement, and poor performance.
Time Off as a Motivator
While many have thought that increasing employee compensation is key to motivating the workforce, recent studies indicate that rewarding workers with vacation time may be a better way to achieve this goal.
While monetary bonuses are frequently associated with work performance, vacation time allows employees to separate themselves from their work. As a result, they often feel “more human,” an experience that may correlate more closely with feelings of well-being and work-life balance.
Employers Also Benefit From PTO
Leaning into PTO and away from additional employee compensation not only benefits employee wellness but can also have positive effects on the company and work culture.
Well-rested employees are often more creative and productive. In many cases, offering paid time off can also be more budget-friendly than giving out large bonuses, making this human-centric benefit more appealing all around.
Incorporating PTO Into Your Employee Benefits Plan
According to data from the Bureau of Labor Statistics, over 80% of all private industry workers have access to some form of paid leave benefits.
Offering PTO as a benefit looks different for every organization, and it’s important that you go with a model that works best for your structure. A few common options include:
- Combined Time Off: Combining sick time, vacation, and personal days into one larger PTO “bucket”
- Time Accrual Method: Employees earn a specific amount of time off for a set number of days or hours worked (e.g., one hour for every 40 hours worked)
- Annual Allotment: Providing a set number of hours or days (e.g., 10 days or 40 hours) for PTO at the start of the year
- Tenure-Based Increases: Offering PTO benefits or more time at set milestones (e.g., three, five, or 10 years)
- Unlimited PTO: Allowing employees to take time as needed, as long as they’ve planned for work coverage
- Floating Holidays or Birthdays: Offering additional paid days around holidays, birthdays, or religiously significant celebrations
Before considering how you might implement PTO as a benefit, consult with your team to discuss the potential impact on the company budget and how these benefits may affect scheduling and productivity. It’s crucial to have a concrete plan and policy in place to mitigate any potential issues that may arise.
It’s also important to remember that, although your team may appreciate having access to PTO in their employee benefits plan, they may sometimes feel bad about leaving work behind to take a mental health day or go on vacation.
Once your PTO benefits are in place, you may need to encourage your employees to take advantage of them and remind them to prioritize their well-being.
Help Your Employees Achieve Better Balance With the Right Benefits Package
Balancing work and personal life can be challenging for employees. Offering PTO can help them draw proper boundaries to help prevent burnout and maintain high performance levels. Still, many HR professionals and business owners find implementing PTO to be a daunting task.
Benefits Advisory Group can show you how paid time off might best fit into your employee benefits plan. Contact us today to discover how we can develop a viable strategy to help you attract and retain the right team in today’s competitive market.